American Airlines and Google Sign Major SAF Agreement

American Airlines and Google announce 35 million gallon sustainable aviation fuel agreement

American Airlines and Google have signed what they describe as the largest sustainable aviation fuel certificates deal between an airline and a corporate customer. The three-year agreement covers 35 million gallons of SAF and is expected to reduce emissions by nearly 300,000 metric tons of CO2 equivalent.

The arrangement uses a book-and-claim structure. American Airlines will purchase and use the physical fuel at Chicago O’Hare International Airport. Meanwhile, Google will claim the associated environmental benefits through the SAFc Registry, a system designed for transparent tracking of sustainable aviation fuel certificates.

For UK businesses managing travel emissions and Scope 3 reporting, this deal shows how corporate buyers are starting to address aviation emissions through certificate-based claims rather than direct use of sustainable fuel. The approach raises important questions about how these reductions are verified, reported, and counted across different reporting frameworks.

How the book-and-claim system works in aviation fuel markets

Book-and-claim has become a widely used accounting method in sustainable aviation fuel markets. The system exists because SAF’s environmental benefits cannot always be physically tracked to a specific aircraft or customer once the fuel enters the supply chain.

Under this model, one party purchases and uses the physical fuel. Another party buys the environmental attributes separately. The SAFc Registry records these transactions to prevent double-counting and maintain a clear chain of custody for the carbon reduction claims.

Airlines for America, the US industry trade body, has published policy guidance explaining that book-and-claim helps airlines and customers assign environmental benefits transparently while maintaining integrity. The system mirrors renewable energy certificate markets, where electricity attributes can be separated from physical power delivery.

In the American Airlines and Google agreement, Valero Marketing and Supply Company provides the underlying SAF supply arrangement. This helps finance the physical fuel purchase at Chicago O’Hare. Google then purchases the certificates representing the carbon reduction achieved when that fuel is used instead of conventional jet fuel.

The fuel itself comes from waste feedstocks, particularly used cooking oil. This type of SAF can deliver up to 80% lifecycle carbon reduction compared to conventional jet fuel, depending on the feedstock and production pathway used.

What the scale of this agreement means for SAF deployment

American Airlines has called this the largest publicly announced SAFc agreement between an airline and a single corporate customer to date. The 35 million gallon commitment over three years represents a significant corporate investment in aviation decarbonization.

To put that in context, sustainable aviation fuel currently represents less than 1% of global jet fuel consumption. Production capacity remains limited, and SAF typically costs two to five times more than conventional jet fuel. These economics create a significant barrier to wider adoption.

Corporate buyers willing to pay a premium for SAF certificates can help close this cost gap. When companies like Google purchase environmental attributes, they provide revenue that makes SAF production more financially viable. This can encourage investment in new production facilities and help scale up the industry.

The deal also demonstrates how large corporations are addressing business travel emissions. For most companies, employee air travel sits within Scope 3 emissions, which covers indirect emissions from value chain activities. These are often the hardest emissions to reduce because they depend on third-party suppliers and infrastructure.

Unlike ground transport, where electric alternatives exist, aviation has few near-term decarbonization options. Aircraft cannot yet fly on batteries for commercial routes. Hydrogen propulsion remains in development. Consequently, SAF represents the main tool available for reducing aviation emissions in the next decade.

Implications for UK businesses managing travel emissions and carbon reporting

UK companies face increasing pressure to measure and reduce Scope 3 emissions, including business travel. Requirements come from multiple directions: regulation, investor expectations, customer demands, and public sector tender criteria.

The Streamlined Energy and Carbon Reporting regulations already require many UK companies to report Scope 1 and 2 emissions. However, investors and stakeholders increasingly expect comprehensive Scope 3 disclosure as well. Aviation often represents a material portion of a company’s travel footprint, particularly for businesses with international operations.

Public sector suppliers must pay particular attention. Procurement Policy Note 06/21 requires suppliers bidding for central government contracts above certain thresholds to demonstrate credible net-zero commitments and publish a carbon reduction plan. These plans must cover Scope 3 emissions where the company has influence.

Book-and-claim SAF certificates offer one way to address aviation emissions in carbon accounting. Nevertheless, businesses need to understand how these claims work within their reporting framework. Different standards treat purchased certificates differently, and the rules continue to develop.

The greenhouse gas accounting standards most commonly used by UK businesses are the GHG Protocol Corporate Standard and ISO 14064. Both allow companies to report certain types of purchased environmental attributes, but the treatment varies depending on whether you are reporting location-based or market-based emissions.

Furthermore, some reporting frameworks may require specific disclosure about the nature of the claims being made. Companies should be prepared to explain the book-and-claim mechanism, the registry used, and how double-counting is prevented. This transparency becomes especially important when making public net-zero claims or reporting to investors.

Concerns about transparency and verification in SAF certificate markets

While book-and-claim systems enable corporate investment in SAF, they also raise questions about verification and regulatory oversight. The market for SAF certificates is still developing, and standards are not yet fully harmonized across jurisdictions.

One concern involves double-counting risk. Without robust registry systems, the same carbon reduction could theoretically be claimed by multiple parties. The SAFc Registry used in the American Airlines and Google deal is designed to prevent this, but businesses should verify that any certificates they purchase come from a credible, independently audited system.

Regulatory uncertainty also affects how companies can use these certificates. Different countries and reporting frameworks may treat SAF certificates differently for compliance purposes. What counts as a valid reduction claim in one jurisdiction may not be recognized in another. This creates complexity for multinational businesses trying to maintain consistent carbon accounting across markets.

Traceability presents another challenge. When physical fuel and environmental attributes are separated, it becomes harder to verify the chain of custody. Companies purchasing certificates need assurance that the underlying SAF was actually produced, delivered, and used as claimed. Independent verification and third-party audits become essential.

Questions also arise about additionality. For a carbon reduction to be meaningful, the action taken should result in emissions reductions that would not have happened otherwise. If SAF would have been produced and used anyway, selling the certificate separately may not create additional climate benefit. This mirrors longstanding debates in carbon offset markets about what constitutes a genuine, additional reduction.

Key facts about the American Airlines and Google SAF agreement

• The agreement covers 35 million gallons of sustainable aviation fuel to be delivered over three years at Chicago O’Hare International Airport.
• Expected emissions reductions total nearly 300,000 metric tons of CO2 equivalent across the contract period.
• American Airlines purchases and uses the physical fuel, while Google claims the environmental benefits through SAFc certificates.
• The fuel comes from waste feedstocks such as used cooking oil, which can deliver up to 80% lifecycle carbon reduction compared to conventional jet fuel.
• Valero Marketing and Supply Company provides the underlying SAF supply arrangement that enables the physical fuel purchase.
• The SAFc Registry tracks the transaction to maintain transparency and prevent double-counting of environmental claims.
• American Airlines describes this as the largest publicly announced SAFc agreement between an airline and a single corporate customer to date.

What UK businesses should consider about SAF certificates and travel emissions

Companies looking at SAF certificates as part of their carbon reduction strategy should start by understanding their current travel footprint. Accurate baseline measurement is essential. You need to know how much your business travel contributes to total emissions before you can assess whether SAF certificates represent a material reduction opportunity.

Next, consider how SAF certificates fit within your broader decarbonization approach. Carbon reduction plans should prioritize direct emissions reductions first. This means reducing unnecessary travel, shifting to lower-carbon transport modes where practical, and improving operational efficiency. Purchased certificates should supplement these efforts, not replace them.

When evaluating SAF certificate providers, ask about registry systems and verification processes. Credible providers should use independent third-party verification and participate in established registry systems that prevent double-counting. They should also provide clear documentation about feedstock sources, production pathways, and lifecycle emissions calculations.

Check how your chosen reporting framework treats SAF certificates. If you report under the GHG Protocol, review the guidance on Scope 3 Category 6 business travel emissions. If you supply the public sector, ensure your approach aligns with PPN 06/21 requirements. Different frameworks may require different levels of disclosure about purchased attributes versus direct reductions.

Companies should also consider the commercial implications of these decisions. As SAF markets develop, costs may change. Early commitments to certificate purchases could provide price certainty, but they also carry risk if regulatory treatment changes or if alternative decarbonization options become available.

Think about stakeholder communication as well. Investors, customers, and employees increasingly scrutinize corporate climate claims. Being able to explain your approach clearly, including the difference between direct reductions and purchased certificates, helps maintain credibility. Transparency about the limitations and uncertainties in SAF accounting is just as important as highlighting the reductions achieved.

For businesses with significant aviation emissions, carbon reporting compliance support can help navigate these complexities and ensure your approach aligns with regulatory requirements and stakeholder expectations.

Where to find authoritative guidance on aviation emissions and carbon accounting

The UK government provides detailed guidance on measuring and reporting greenhouse gas emissions through the Department for Energy Security and Net Zero. Their greenhouse gas conversion factors include specific emissions factors for different types of air travel and are updated annually.

For public sector suppliers, the Procurement Policy Note 06/21 sets out the carbon reduction plan requirements that apply to contracts above certain thresholds. This includes expectations around Scope 3 emissions reporting and target-setting.

The GHG Protocol offers comprehensive guidance on corporate carbon accounting standards. Their Corporate Accounting and Reporting Standard provides the foundational methodology used by most UK businesses, while the Scope 3 Standard gives detailed guidance on value chain emissions including business travel.

Airlines for America has published policy guidance on SAF certificate systems and book-and-claim accounting, which provides industry perspective on how these mechanisms work in practice. While this represents US industry views, the accounting principles are relevant to UK businesses purchasing SAF certificates from any market.

For businesses developing their approach to aviation emissions, structured carbon reduction programs can provide the framework needed to measure, report, and reduce travel emissions in line with regulatory requirements and commercial objectives.