Smart Freight Centre Introduces Auditable Market Based Measures Specification
Amsterdam, October 14, 2024 – Today, Smart Freight Centre has taken a significant step forward in enhancing transparency and accountability in greenhouse gas (GHG) emissions reporting with the launch of the auditable Market Based Measures Specification for Logistics Emissions Reporting (MBM Specification).
- Smart Freight Centre publishes the auditable "Market Based Measures Specification for Logistics Emissions Reporting” (in short: MBM Specification) as its first normative, auditable document.
- Organizations can use the new specification to transparently and credibly report on their in-value chain, market based activities.
- The MBM Specification is built on the Voluntary Market Based Measures Framework for Logistics Emissions Accounting and Reporting (MBM Framework). As a normative document, it enables third party verification of MBM Emissions Reports. Verification Bodies (VVBs) can apply for Approval under the expanded SFC Conformity Assessment Scheme. Once approved, they can offer verification services against the MBM Specification.
The MBM Specification provides organizations with an opportunity to transparently document, report and independently assure their in-value chain, market based activities such as those enabled by a ‘book and claim’ chain of custody. With transport demand expected to double between now and 2050, decarbonization of freight transportation is crucial. To accelerate climate action in today’s global, complex and dynamic supply chains, SFC released the MBM Framework in 2023, as a guidance document supporting value chain partners in the design of their market based approaches to transportation decarbonization. Frequent stakeholder requests for an auditable, normative document to facilitate verification led to the now-published MBM Specification and its inclusion in SFC’s Conformity Assessment Scheme.
The key documents that are made available on our website library today are the MBM Specification and a template for Emissions Reports. The MBM Specification contains clear, transparent and auditable requirements for organizations who want to report on low emission transport activity conducted with low emission transportation solutions. These are called Low Emissions Transportation Services (LETS). The free Emissions Report template supports Emissions Reporters who seek to disclose their GHG Emissions according to ISO 14083 and their market based activity according to the MBM Specification.
Download the MBM Specification, here.
Smart Freight Centre invites VVBs to apply for Approval
In 2023, Smart Freight Centre launched the Conformity Assessment Scheme (CAS), which offers independent assurance to emission reporters in line with the ISO 14083 standard. Now and with the publication of the MBM Specification, the CAS is expanded to offer a second scope for verifying reported chain of custody-enabled emissions data including a market based approach. With this expansion, SFC allows Approved VVBs to offer verification services against the MBM Specification.
Successful Pilot
The release of the MBM Specification followed a pilot phase, where checklists, reporting templates and supporting documentation were tested in practice by a diverse group of stakeholders including Emissions Reporters, VVBs, Registries and Calculation Tool Providers. We are very grateful for their time and insights and thank Normec Verifavia, Müller-BBM Cert, DHL Group, 123 Carbon, Posti Group, Sovereign Speed and Shipzero for their involvement and feedback during the pilot stage.
"Normec Verifavia strongly endorses Smart Freight Centre's voluntary Market-Based Measures Specification for Logistics Emissions Reporting. This pioneering initiative promises to revolutionize the logistics industry by facilitating robust, transparent, and high-quality offset and inset mechanisms. These measures are crucial for mitigating indirect emissions across the entire logistics value chain. This timely development lays a solid foundation for accelerated decarbonization efforts in our sector, with significant progress expected in the near future. Collaborating on the development of this pioneering voluntary Market Based Measures Specification has been an invaluable experience. At Normec Verifavia, we are committed to innovating solutions that accelerate the industry's decarbonization efforts. This initiative aligns perfectly with our mission to drive sustainable practices across the sector."
Patricia Pinilla
Sustainability Initiatives Director of Normec Verifavia
“It’s great to see Smart Freight Centre continue to take the leads in developing the MBM methodology and providing guidance to the market. As an independent platform, we are depending on SFC to ensure we can accommodate our partners with consistency, transparency and integrity. We still have a long way to go, but the MBM Specifications work does allow us to further develop our independent, multi-modal Book and Claim platform.”
Jeroen van Heiningen
Managing director 123Carbon
“The release of the MBM Framework in 2023 marked a milestone for advancing voluntary decarbonization as it supports the accelerated uptake of sustainable fuels by outlining pathways for implementing high-quality and high-integrity low emissions transportation services. The newly released MBM Specification takes the guidance of the Framework a step further, by providing clear requirements for documentation, reporting and independent verification of in-value chain market based transportation decarbonization, and by paving the way for future inclusion in emissions inventories of companies that take action towards the decarbonization of transportation. We invite organizations and verifiers interested in market based measures to familiarize themselves with the MBM Specification and to apply for our Conformity Assessment Scheme when they are ready to take the next step.”
Patric Pütz
Technical Director at Smart Freight Centre
How to use the MBM Specification and the MBM Framework
The MBM Specification builds on SFC's Voluntary Market Based Measures Framework for Logistics Emissions Accounting and Reporting, published in 2023. By translating the guidance from the framework into a clear specification with standardized language and unambiguous requirements, the MBM Specification ensures high-quality, transparent reporting. The MBM Framework remains valid as a guidance document on the design of such in-value chain measures.
The MBM Specification guides implementers on how to document market based activities and services and the underlying assumptions, controls, definitions and parameter choices in a Monitoring Plan. Once measures are implemented, results will be disclosed in an MBM Emissions Report, which might undergo third-party verification through one of the Validation and Verification Bodies (VVBs) that are Approved by SFC.
For more information on the MBM Specification, visit the Conformity Assessment Scheme webpage, or contact our team.
About Smart Freight Centre
Smart Freight Centre (SFC) is a globally active non-profit organization for climate action in the freight sector. Our goal is to mobilize the global logistics ecosystem, in particular our members and partners, in tracking and reducing its greenhouse gas emissions. We accelerate the reduction of logistics emissions to achieve a zero-emission global logistics sector by 2050 or earlier, consistent with 1.5° pathways. www.smartfreightcentre.org