Global energy and commodity price reporting agency Argus has introduced new Sustainable Aviation Fuel (SAF) emissions reduction indexes (ERIs), offering aviation market participants a streamlined method to evaluate SAF economics alongside compliance and voluntary carbon market obligations.
The new daily assessments and accompanying analytics provide an independent reference point for airlines, fuel suppliers, corporate SAF buyers, investors, and sustainability specialists. They aim to assist industry figures in evaluating regional SAF competitiveness, aviation decarbonisation costs, and the allocation of Scope 3 emissions reductions.
Argus publishes ERIs covering Europe, Asia, and the US excluding Corsia, as well as a specific European benchmark excluding the EU emissions trading system (ETS). The ex-Corsia assessments illustrate the net cost of reducing aviation emissions through the hydrotreated esters and fatty acids synthetic paraffinic kerosene (HEFA-SPK) pathway compared with purchasing Corsia-eligible units. Similarly, the ex-ETS assessment compares HEFA-SPK costs directly with EU ETS compliance expenses. Both calculations incorporate market-based assessments to capture the net cost of SAF utilization after accounting for carbon market values.
The ERIs normalise fuel prices on an energy-equivalent basis using regional lifecycle emissions assumptions, publishing daily values in US dollars per tonne of carbon dioxide equivalent. To ensure clear visibility of underlying SAF premiums against Argus physical benchmark prices, daily figures are also provided in US dollars per tonne of fuel.
To complement the indexes, Argus has made available an Excel-based calculator, allowing subscribers to build bespoke procurement and decarbonisation models. By integrating published ERIs with custom regional incentives, compliance mechanisms, emissions assumptions, and operational costs, the tool supports Scope 3 negotiations and the equitable allocation of SAF costs and environmental attributes between buyers and sellers.
Argus Media chairman and chief executive Adrian Binks noted that the ERI assessments help market participants clearly understand the interplay between fuel pricing and expanding carbon market obligations. He added that the combined launch of the indexes and calculator offers a transparent, independent framework for establishing reduction costs and managing environmental attribute distribution.
