How Book and Claim
can flick the switch:
its role in electrifying
road freight1

Introduction

Contents
1

Introduction

2

Flicking the switch to BEVs

7

The mismatch between supply and demand

12Book and Claim in logistics—what is it?

14

Book and Claim for BEVs—two key benefits

The road freight industry is the backboneof global commerce. Almost every
shipment starts and ends on wheels. It’s no
exaggeration—road freight plays an integral
part in society as we know it. However,sustainability has emerged as a pressing
concern.
It is estimated that freight transport worldwide accounts for around 8% of CO2e 1emissions. 2 With the current trends, thisfigure has the potential to double by 2050. 3
By that time, the freight sector could be
the highest emitter, as it continues to rely
heavily on fossil fuels to meet a growing
demand, while other sectors shift to moresustainable energy sources. 4 At the sametime, by 2030, the transport industry, alongwith other sectors, must achieve a 42%
reduction in global emissions (compared
to 2020) to meet the targets set out in
the Paris Agreement. 5 This is aligned with
the Science Based Target initiative (SBTi),
which aims to keep global temperature
increases under 1.5°C and accomplish netzero emissions by 2050.

A robust solution close to the physical reality
22

The missing piece:
Book and Claim in carbon reporting

24

Conclusion

25

Glossary

At present, the road freight industry has
clear reduction targets and, despite
challenges, has technologies available thatcan support the sector’s decarbonisation
journey. Battery-electric vehicles (BEVs)
and biofuels like hydrotreated vegetable oil(HVO) are prominent examples.

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June 2024

Nonetheless, with the current speed ofchange, the road freight industry will notmeet its targets. Road freight companies
must, therefore, innovate further to create
substantial change.

As part of its portfolio of low-emission
transport services (LETS), Kuehne+Nagelis currently leveraging HVO as a bridging
solution towards achieving a significant
share of BEVs in its own fleet and in the
fleets of its carriers. Considering theurgency to decarbonise, fleet electrificationneeds to happen in a timely manner.
There are many roadblocks to thatambition. But there are also mechanismsthat can accelerate the deployment of
BEVs. Take, for example, a Book and Claimchain-of-custody model. Book and Claimaddresses one of the main hurdles to faster
fleet electrification, namely, the present-day
mismatch between the demand for LETS
and its supply. Moreover, it can help small
and medium-sized trucking companies tofinance their transition to electric fleets.
However, the success of this innovative
solution relies on ticking the right boxes.
This white paper provides insights into therobust principles behind Kuehne+Nagel’s
Book and Claim solution for BEVs. It also
advocates for a wider acceptance of thissolution and articulates the need for aclear differentiation from carbon offsetting.
Book and Claim as a mechanism isarguably the road freight industry’s best
bet to accelerate urgently needed fleet
electrification, but we must ensure it isrightly formalised and implemented.
1 CO2e, or CO2 equivalent, is a unit of measurement used to group theemissions from different greenhouse gases into one number. The
calculation relies on the global-warming-potential of the different
greenhouse gases.
2 International Energy Agency. CO2 Emissions from Fuel Combustion. (2018).
3 International Transport Forum. ITF Transport Outlook 2021. (2021).
4 SR15_Chapter2_Low_Res.pdf (ipcc.ch)
5 https://sciencebasedtargets.org/resources/files/Pathway-to-Net-Zero.pdf

2Book and Claim

Flicking theswitch to BEVs
There are several ways to reduce emissions
from road freight. For one, designing themost efficient supply chain not only in termsof time and cost, but also sustainability.
In practice, this could look like choosing theshortest route and optimising load or vehicle
efficiency. Optimisation, however, has its limits.

4Book and Claim

Flicking the switch to BEVs

5

The mismatch
between supply
and demand
The term low-emission
transport services (LETS)
was first coined in the Smart
Freight Centre’s VoluntaryMarket Based Measures
Framework for Logistics
Emissions Accounting andReporting (MBM FW). It is anumbrella term that capturestransport solutions that reduce
emissions compared to thosethat burn “traditional” fossil
fuels. Examples of LETS include
biofuels or electric vehicles. It
is useful to avoid having to talkabout “litres” (in the case offuels) and kWh (in the case ofelectric vehicles) in the context
of Book and Claim as it allows
a measurement of greenhousegas (GHG) emission intensity ofLETS that’s independent fromthe underlying technology.
Carbon emission intensity
is calculated by dividing thetotal emissions by a metric of an
operation, such as the numberof units or amount of service.
In transport, it is expressed byCO2e per tonne-kilometre(t-km).

To truly decarbonise road freight, addressing
the energy source of a vehicle is a nonnegotiable. Today, Internal Combustion
Engines (ICE) still dominate the trucking
market. When those are fuelled by diesel,they produce a significant amount of CO2eemissions. There are two alternatives toreduce road transport emissions as opposed
to “traditional” burning of fossil fuels like
diesel. These centre on tackling a vehicle’s
energy source—low-carbon fuels and electricmotors. These two solutions fall under theumbrella of LETS.
Biofuels or power-to-liquid fuels are being
evaluated to reduce emissions from ICE
vehicles. However, their limited availability,
low efficiency, residual pollutants, and highcost suggest that they will not become thenorm in the near- and long-term. Instead,electric vehicles stand to shape the future ofroad freight.
Policymakers worldwide started to incentivise
the shift from fossil fuels to low-carbon
energies in the road freight industry.
California’s Advanced Clean Trucks (ACT)
regulation, for example, requires that at least
half of heavy-duty electric trucks sold in thestate should be electric by 2035. In addition,
the EU proposed a 90% decrease in new
heavy-duty vehicle CO2 emissions by 2040
(compared to a reference period between
1 July 2019 to 30 June 2020). 6 These are
significant steps in the right direction.

Much emphasis is put on battery-electricvehicles (BEVs) and fuel cell electricvehicles (FCEVs) as they have zero tailpipe
emissions. Only the production processesof the batteries that power them, generating
the electricity used by those batteries,
producing the hydrogen and non-exhaust
particulate matter may cause emissions.
Among those two options, BEVs are
predicted to prevail over FCEVs because
the hydrogen required for FCEVs is likely
to be mostly allocated to other energyintensive industries and transportation
modes (like planes and ships). BEV
technology is also already more maturethan FCEVs, which makes it a more feasible
solution in the short term. The total cost ofownership (TCO) of battery-electric trucks
is also expected to be lower than for FCEVs
and even ICE trucks in the long run.
So, to decarbonise road freight, we must
transition to electric fleets—a journey whichmost logistics service providers havestarted. However, this transition is currently
too slow. Unfortunately, moving to newelectric technologies at a large scale is not
yet possible today due to several limiting
factors, the most prominent of which aredescribed in the next section.

6	https://climate.ec.europa.eu/eu-action/transport/road-transportreducing-co2-emissions-vehicles/reducing-co2-emissions-heavyduty-vehicles_enElectrifying trucking represents a huge
step towards achieving sustainable roadtransportation. However, for BEVs to bescalable, some critical hurdles must be
addressed.
The substantial upfront cost of BEVs
remains a major obstacle for fleet
operators. Despite the potential longterm savings in TCO, the high upfront
costs and uncertainty about its operating
costs complicate adoption within current
operational budgets. These obstacles weigheven heavier on the small and mediumsized carriers who represent 90% of theroad haulage market. 7
Overcoming this challenge requires
innovative financing solutions, government
incentives, and clear economic analyses todemonstrate the cost-effectiveness of BEVs
over their lifecycle. Setting up a widespreadcharging infrastructure is also key to BEV
adoption. Installing fast-charging stations
on major routes and at distribution centres
is central to these efforts. Furthermore,
the transition to BEVs will place additional
demands on energy infrastructure, requiring
investments in renewable energy, grid
capacity and intelligent grid management.

7 https://www.klu.org/fileadmin/klu.org/media/landingpages/SMEstudy/SFCKLU_report_v5i.pdf

6Book and Claim

Flicking the switch to BEVs

7

Book and Claimin logistics—
what is it?
In summary, the demand
is not always where thesupply is. A solution, if theright mechanisms are inplace is Book and Claim.

Today, those limiting factors clearly leadto a mismatch between the supply andthe demand for BEVs. Moreover, other
LETS face a mismatch between supply
and demand as well, albeit due to different
challenges. For example, driving range is
not restricted when using HVO. However, it
is not available everywhere. This frequently
means businesses that are keen to switch
to LETS are not yet able to do so because
deployment is either operationally
unfeasible or inefficient.

Book and Claim is a chain-of-custody model 8“in which the administrative record flow does notnecessarily connect to the physical flow of material
or product throughout the supply chain,” (source:
ISO 22095:2020). It means that the attributes of a
product or service, like its sustainability benefits,
can be uncoupled from that product or service andtransferred through an accounting methodology.

We have engaged in numerous discussions
with clients on LETS that have often been
halted by feasibility concerns. On the other
hand, we already have BEVs in place acrossspecific segments of our road freight
operations, for example, as part of ourgroupage network in France or the precarriage activities near Bangkok in Thailand,
where the demand for LETS has not yet
matured.

Additionally, further technological advances
in battery design are imperative to extend
the driving range and improve payload
capacity of BEVs.

In summary, the demand is not always
where the supply is. However, there isa way to overcome this mismatch. A
solution that might be key to acceleratetruck electrification and build the roadfreight industry of the future if the rightmechanisms are in place—Book and Claim.

78Book and Claim

Flicking the switch to BEVs

9

The Book and Claimconcept: a newgateway toCO2e reductions
4

5
CO2e

CO2e

↑
3

CO2e

→
2

CO2e

Kuehne+Nagel’s Book and Claim
for BEVs:
1

1

We agree on the scope of transported
services to be executed with BEVs
using Book and Claim.

2

We calculate the CO2e emissions of
those (non-low-emission) transport
services transport service using the
ISO 14083 norm.

3

We ensure that BEVs somewhere in
our network generate the required
CO2e emission reductions.

4Those emission reductions arebooked in our registry.

5

From this registry, we allocate theemissions savings to the scopedtransport services.

6

All emission reductions are fully
traceable and linked to a uniqueBook and Claim certificate.

6

In a logistics context, it enables companies
to “claim” the emission reductions of
LETS when it is not possible or efficientto physically move their goods throughthese means (for example, where HVO is
not available, grid power is insufficient,or payload capacity is too low, etc.). This
works because emissions have no borders,and global warming is only concernedwith the absolute quantity of CO2e, notwith who physically produced it. The key
principle here is that it’s possible to clearly
define and differentiate between the entity
generating the emission reduction and theentity claiming that reduction.
This helps to address today’s biggest hurdle
to the decarbonisation of logistics: limitedaccess to cost-effective, low-emission
solutions for businesses that are willing toinitiate the change. Book and Claim helps
to match the demand for more responsible
transport means to the supply of thesesolutions that are already operationallypossible, scalable, and cost-effective.
Book and Claim is recognised 9 and wellestablished in the electricity market. In
logistics, however, it is a relatively novel
solution that was initially applied for SAF inaviation. The following list summarises its
history in logistics:
8 A process that tracks and documents evidence at every step.
9 https://ghgprotocol.org/scope-2-guidance10Book and Claim

Flicking the switch to BEVs

Phase 1:
Focus on biofuels

In 2019, Book and Claim
was already identified andtrialled by Kuehne+Nagel’s
Sea Logistics department
to help customers
decarbonise.

2019

11

Phase 2:
Assets included tooI n the summer of 2021, theWorld Economic Forum(WEF) first highlighted thepotential of Book and Claimas an incentive for greening
the supply chain (source).
Additionally, the Smart
Freight Centre publishedguidelines for the principles
of a Book and Claim chainof custody system for the
air freight industry. 12

From 2021 onwards,
more and more logistics
service providers
have introduced Book
and Claim, mainly forsustainable aviation fuel(SAF) and sustainablemaritime fuels (SMF).
HVO also got included,
but at a smaller scale.

2021

2021 onwards

2020

2021

In November 2020, theSmart Freight Centre
and the DHL Group
proposed insetting 10 as“the missing piece in the
decarbonisation puzzle”,
presenting it as a way
to finance low-emission
transport services to meetclimate goals. It raisedBook and Claim as amechanism to put this into
practice. 11

I n December 2021, thefirst industry collaboration
on Book and Claim
was launched by the
Smart Freight Centre in
partnership with WEF
and leading logistics
companies. The aim wasto develop a framework
and accounting guidelines
for a Book and Claimchain of custody system
for transportation supply
chain emission reduction
actions, highlighting thatthe solution is a powerfultool to accelerate thedecarbonisation of freighttransportation. 13

In January 2024
Kuehne+Nagel madea pioneering move andincluded electric trucks
in the Book and Claimframework. This wasdeveloped by working
together with leading
French carbon consultancy
Carbone 4 and by relying
on Smart Freight Centre’s
accounting guidelines.

2024

2023

In June 2023, the Smart
Freight Centre publishedaccounting guidelines for
decarbonisation measuresthrough Book and Claim
across all transportation
modes. This was the firsttime that the road freightindustry was formally
included. 14

Book and Claim for the logistics industry
has come a long way. However, SBTi and the
GHG Protocol have not yet formalised how
LETS CO2e reductions achieved throughBook and Claim can be accounted for in
official carbon reports. SBTi announced thatthe “first draft of basic rules, thresholds,
and guardrails for the potential use ofenvironmental attribute certificates forabatement purposes of Scope 3 emissions
will be issued by SBTi by July 2024.” 15
The final formalisation of Book and Claim’s
CO2e reductions accounting may take time.
However, given the urgency of transport
decarbonisation needed to meet the Paris
Agreement’s targets and to stay well below
a rise of 2°C globally, the sector desperately
needs more tools to accelerate change.
Book and Claim, when built on sound andindustry-aligned accounting rules, is one
such catalyst for the decarbonisation of
freight.

10 Investing in carbon reduction projects along a company's own value chain.
11 Source: dgf-carbon-insets-white-paper-smart-freight.pdf (dhl.com)
12 Smart Freight Centre
13 https://www.smartfreightcentre.org/en/about-sfc/news/smart-freightcentre-partners-with-world-economic-forum-and-leading-companies-todevelop-a-book-and-claim-chain-of-custody-system-for-transportationsupply-chain-emission-reduction-actions/)
14 Smart Freight Centre
15 https://sciencebasedtargets.org/news/statement-from-the-sbti-boardof-trustees-on-use-of-environmental-attribute-certificates-includingbut-not-limited-to-voluntary-carbon-markets-for-abatement-purposeslimited-to-scope-3

121

Book and Claim

Book and Claim
for BEVs—two key
benefits
Kuehne+Nagel has a long experience deploying
SAF and SMF through Book and Claim. Having also
built HVO fuels into the solution in October 2023, thenext necessary step was to introduce electric trucks.
Launched in January 2024, it represents a significant
stride towards decarbonised road freight solutions.
This ground-breaking solution, a pioneer in its field,
has undergone rigorous testing and validation incollaboration with external stakeholders.

Currently, only Kuehne+Nagel’s owned
trucks are included in the Book and Claim
offer. This enables us to maintain strict
control and transparency over the accuracyof the data used in calculations. However,there are plans to extend this solution toencompass low-emission trucks operated
by our partners and support their fleet
electrification efforts as well.
Book and Claim for BEVs has
two important benefits:→

2

Businesses cancontribute to speed up
the electrification ofroad freight

It can support smallroad carriers to financetheir transition

Because Book and Claim helps
overcome the mismatch between
the supply and demand for LETS,
it enables businesses wanting
to reduce their emissions byinvesting in LETS to already do thattoday. Companies that offer Book
and Claim need to ensure anddemonstrate that their customers’
investments into Book and Claim areused to accelerate change. These
investments need to flow to where
it makes most sense, with the goalof supporting further technology
penetration. For road freight, thismeans making BEVs more widely
available.

Book and Claim can help many small
and medium-sized trucking companies finance their transition toelectric fleets. Those businesses
make up 90% of the road carrier
market. 16 For these firms, theroadblocks to truck electrification,
particularly the financial ones, areeven harder to overcome. Bigger
actors, like Kuehne+Nagel, could use
Book and Claim to connect those
SMEs with customer demand, giving
an unprecedented incentive totransition sooner than without
this tool.

At Kuehne+Nagel, we use theincome from Book and Claim for
BEVs to drive the electrification ofroad freight. The more businesses
utilise this solution, the more weare able to shift from ICE vehicles
to other solutions. It is a win-win
situation: Book and Claim equips
logistics service providers with more
tools to help their customers reduce
supply chain emissions, and theroad freight industry has a chance tocatch up with its reduction trajectory.

However, for the benefits of Book andClaim to materialise, two boxes need to beticked. Firstly, as already stressed, Book andClaim’s scope, rules and constraints need
to be transparent and as close as possible
to the physical reality. Secondly, Book andClaim needs to be recognised by the wider
community of stakeholders and institutions,like SBTi, shippers and end-consumers, as atool to report emission reductions in official
carbon reports. Furthermore—and crucially—it should be differentiated from other marketbased solutions, such as carbon offsetting.
In the next sections, we will dive deeper into
those elements.
16 	https://www.klu.org/fileadmin/klu.org/media/landingpages/SMEstudy/
SFC-KLU_report_v5i.pdf

14Book and Claim

A robust solution
close to thephysical reality
Book and Claim differs from offsetting in that investments
in CO2e reduction certificates are bound to specific carbon
reduction projects in the road transport sector. Book andClaim also has a high level of traceability and transparency, afacet we have prioritised at Kuehne+Nagel whilst developing
our methodology. It follows that Book and Claim relies on
established carbon account principles. For its CO2e baseline
calculation, we apply ISO 14083 and related standards (suchas the GHG protocol).

The methodology behind BEV inclusion
in Book and Claim was aided by ourexperience in similar solutions for bothsea and air logistics. Furthermore,
Kuehne+Nagel collaborated withexternal partners to rigorously assessand validate the solution’s philosophy, as
well as its scientific and methodologicalreliability. Moreover, the Book and Claimmethodology has been audited by Müller
bbm cert. Lastly, we use the Market Based
Measures Accounting Framework (MBM
FW) as a guiding source, while sometimes
going beyond those guidelines. We also
participate in the Smart Freight Centre’sBook and Claim Community to ensure thehighest rigour and industry alignment.
On top of the programme’s high standards,
Kuehne+Nagel follows self-imposed
principles to ensure the solution’s
robustness. Despite allowing a separation
between the physical reality of LETS andthe environmental attributes of that service,
we strive to ensure our methodology has
a strong physical coherence. This can be“John De Dryver,
Global Road Logistics
Sustainability Specialistat Kuehne+Nagel

Book and Claim:
It can support
small road carriers
to finance theirtransition of roadfreight.”
John De Dryver

seen in our decision to place restrictions
on the applications of our Book and Claimsolution, which will be outlined below.
Furthermore, we also advise our customers
on how to use the emissions reduction
certificates they receive.
Conditions for a robust solution:→

16Book and Claim

Flicking the switch to BEVs

Reduction
limit

Energy vector
constraint

A customer cannot purchase more LETS
emissions profiles (and corresponding
HVO volumes or BEV t-km) than theemissions generated by the operations
provided to them by Kuehne+Nagel.
Over-compensation is not permitted 17

Emission reduction certificates sold toa given customer must correspond toa situation that is realistic within that
customer's supply chain. Consequently,
certificates for a given energy carrier 18
cannot be associated with journeys forwhich the energy carrier in question is notsuitable.

Modal
constraints

Today, Kuehne+Nagel observes that HVO
is suitable in all situations in which diesel
is currently used. However, BEVs are still

Geographicalconstraints
limited by several factors. An example
here is driving range, which currently rests
around 250km. Charging time is anotherconsideration—currently, only overnightcharging is available. To reflect this physicalconstraint in its solution, Kuehne+Nagel
has decided to limit the Book and Claim for
BEVs to pre- and post-carriage operations
and distances under 250km. This decision
stems from practical experience.
With the energy vector constraint,
Kuehne+Nagel goes beyond the MBM FW.

Pick-upLong haul

Delivery√ HVO
x Electricity√ HVO√ Electricity(max 250 km)

Customer's
operation:

Suitableenergies:
17	Allocation of more LETS services (and underlying solution volume)than what would be physically possible to use in order to reach 100%emissions savings. In reality, LETS currently are not able to reach 100%
compared to diesel.
18	According to ISO 13600, an energy carrier is either a substance or aphenomenon that can be used to produce mechanical work or heat or tooperate chemical or physical processes. In a transportation context,
it refers to biofuels or electricity stored in batteries.

Although the Smart Freight Centre imposesno geographical constraints, Kuehne+Nagel
has decided to restrict the sale of Book
and Claim to regions 19 where the physicalsolution is implemented. The aim is to stay
as close to reality as possible. Althoughtrucks offer great flexibility on the roads,
they are rarely used for long-distance,intercontinental connections.

Energy vector constraint

Kuehne+Nagel’s Book and Claim solution
is segregated by mode of transport. This
ensures that investments into road freight
LETS enable the decarbonisation of roadfreight.

√ HVO√ Electricity(max 250 km)

17* Presently, BEVs are not suitable for long-distance trucking.
However, this will change in the future as the technology andcharging infrastructure mature

A LETS’ emissions profile reflects
the GHG emission characteristics
associated with transport activities(expressed in tonne-kilometre) thatare executed by burning a litre of
biofuel or consuming a kilowatt(kWh) of electricity to charge electricvehicles. It outlines the sourcesof emissions and the respective
magnitudes of GHG emitted to
produce the LETS.

19	“Region” is defined as per Kuehne+Nagel’s regional set up: North
America, South and Central America, Europe, Middle East – Africa
and Asia Pacific.

18Book and Claim

Flicking the switch to BEVs

Vintageconstraint
A vintage constraint removes ambiguity
between when the energy vector is
produced, when it is procured, when the
LETS is generated, and when a certificate
can be sold to a client. In other words,
Book and Claim certificates should be
used as close as possible to the time
LETS generation occured. For HVO,
Kuehne+Nagel has 12 months between
the moment the LETS is generated and themoment it is booked in Kuehne+Nagel’s
registry. The goal is keeping the timeframeas short as possible while still having
a degree of flexibility. Furthermore,
Kuehne+Nagel advises its clients to report
the related CO2e reductions in the same
year of the booking. The maximum time
limit is up to two full calendar years.
For BEVs, Kuehne+Nagel imposes moreconstraints than it does for HVO because
electricity is not an easy-to-store energy

Issuance ofcertificatesvector. To calculate the emissions profile
of BEV LETS, Kuehne+Nagel uses the grid
average electricity emissions factor of thecountry where the truck was charged. 20
This data has a vintage disparity in itself
because the values used to determine
this emission factor are not based onreal-time data. The electricity mix of theyear preceding the LETS generation isusually used.

Kuehne+Nagel will ensure that LETS
generation and booking happen
within the same annual calendar.
Kuehne+Nagel also advises its clientsto report the related CO2e reductionsin the same reporting year. This way,
the disparity between the electricity
generation that determines the emission
factor, the LETS generation, and theclient’s operations is minimised.

Vintageconstraint
HVO

12 months

Low Emissions
Transport Service(LETS)

BEV

Certificates are only issued after shipments
have taken place, when the client’s routing
and load data are available. That’s when the
ISO 14083-compliant calculation is executed
to determine the emissions associated withthe shipments. Subsequently, the required
LETS can be calculated. This approachensures the accuracy of LETS allocation,
as the data used for the calculation is notbased on assumptions or hypotheticalmodels but measured in real-life situations.

Kuehne+Nagelcustomer
24 months

B

The figure on the right illustrates thisvintage constraint.

20	This approach is in line with ISO 14083. Kuehne+Nagel will always
report at least location-based values in line with ISO 14083.

19

Same annual year

BookingC
Claiming

Same reporting year

R

Reporting20

Book and Claim

Avoiding
incorrect double
counting
Double counting is defined as two or more
reporting companies claiming ownershipof the same GHG emission reductions oremissions profile. 21
The GHG protocol distinguishes between
correct and incorrect double counting.
Correct double counting occurs when
one organisation’s direct emissions 22
are counted as the indirect emissions ofanother organisation. 23
In its MBM FW, the Smart Freight Centre
explains extensively the different scenariosthat run the risks of incorrect double
counting and how to address them:
Double issuance:
When Kuehne+Nagel purchases lowemission solutions (i.e., biofuel), we makesure to also purchase and gain ownershipof that solution’s emissions profile. This
ensures that the environmental benefits of

the LETS enabled by that solution cannot
be claimed by another party (i.e., a business
whose goods have been physically movedby the truck driving on biofuel) and that
Kuehne+Nagel can avoid incorrect double
counting. 24
Double use:
Kuehne+Nagel’s audited internal registry
ensures that all customer sales are
effectively retrieved from the available Book
and Claim stock. Moreover, Kuehne+Nageluses an accounting method that allocatesthe emission reductions of each unit of its
LETS by numbering and uniquely identifying
them. This is also visible on the certificates.
The figure below shows the concept of“From Liter No” and “To Liter No” and how it
is displayed on the certificates in the caseof HVO. In this example, all the unique litres
units from 11 to 1254 have been allocated tothe customer which makes a total of 1243
litres of HVO.

HVO ID lot description printed
on KN’s certificates
ID Lot

ISCC-POS-DExxx-xxxxxxx-R-xxxxx

GHG Reduction %Emission factor

Feedstock

From Liter No

To Liter No

900.13 g CO2e/MJ

UCO

11

1254

Double claiming:
To avoid misinterpretations of GHG
emissions when reporting, and to
reduce the potential for incorrect double
counting, Kuehne+Nagel follows Smart
Freight Centre’s guidelines on information
declaration. 25 When Kuehne+Nagel books
the GHG emissions profile of LETS and sells
the emissions profile to its customer, it willreport GHG emission intensity informationdifferently in its declaration to external
stakeholders and in its declaration to thecustomer.
For external declarations, the annual
sustainability report will reflect the overall
average transport emission intensity
resulting from the transport activities ofKuehne+Nagel. The report distinguishes
between transport activities associatedwith LETS and transport activities not
associated with LETS (i.e., without emission
reductions). Clients of Kuehne+Nagel
who do not use Book and Claim must relyon the emission intensity for non-LETS

activities to accurately reflect the emission
intensity of their transport activities with
Kuehne+Nagel, avoiding inappropriate
double counting.
For declarations to customers,
Kuehne+Nagel will only allocate LETS
emission profiles to clients participating in
the Book and Claim programme. For thesecustomers, the emission intensity resulting
from their transport with Kuehne+Nagel
will be lower than for a customer that didn’t
participate in Book and Claim, even when
the goods of the latter have been physically
moved using LETS (their emission intensity
will be based on diesel operations).

21	World Resources Institute and World Business Council for Sustainable
Development. The Greenhouse Gas Protocol: A Corporate Accounting
and Reporting Standard, 2004.
22	The “emitter’s emissions” i.e., emissions from the transport activity
conducted by the carrier (in its scope 1).
23	The “supply chain” emissions i.e., the indirect emissions of theorganisation for which the transport activity was conducted (in its scope 3).
24 Ref. p.50, part 11 of the SFC guidelines.
25 Ref. p.55, part 11 of the SFC guidelines.

22Book and Claim

Flicking the switch to BEVs 23

The missing piece:
Book and Claim in
carbon reporting
At Kuehne+Nagel, we are proud of therobust accounting methodology we havebuilt to launch the first Book and Claimsolution for BEVs. It has passed thescrutiny of auditors with flying colours
and has been met with great interest from
customers and road carriers—a clear
proof of its effectiveness to accelerate theelectrification of road freight. However, weare convinced that a second box needs tobe ticked for the solution to live up to its
potential.

targets, GHG protocol and SBTi play anessential role in that.

In short, Book and Claim needs to be rightly
formalised and institutionalised to truly
move the needle in the decarbonisationof the logistics industry. In doing so, it isessential to distinguish Book and Claimfrom offsetting. As the world’s leading
bodies of corporate climate reporting and

GHG protocol is already evaluating theinclusion of market-based solutions suchas Book and Claim for scope 3 emission
reductions. 26 On top, in April 2024, SBTiannounced its intention to allow companies
to use such solutions to report reductionsin Scope 3 emissions. 27 At the time ofwriting, SBTi announced the publicationof a draft framework for that in July 2024,
already indicating that carbon credits from
offsetting would also be included.
This sparked lots of criticism due to thecontroversies that surround offsetting
practices. Allowing the use of offsetting
certificates to reduce emissions in
official carbon reports—especially without
stringent guidelines and limits on how
they are applied—could dramaticallyreduce the potential of Book and Claim
to help the transport sector accelerate its
decarbonisation efforts.

GHG Protocol establishes comprehensive, globally standardised frameworks
to measure and manage greenhouse gas (GHG) emissions from private andpublic sector operations, value chains and mitigation actions. Building on a
20-year partnership between World Resources Institute (WRI) and the World
Business Council for Sustainable Development (WBCSD), GHG Protocol
works with governments, industry associations, NGOs, businesses and otherorganisations.
The Science Based Targets initiative (SBTi) is a collaborative effort aimed at
helping companies set ambitious greenhouse gas (GHG) emissions reduction
targets aligned with climate science. This world-leading arbiter of corporate
climate targets enhances credibility and accountability by encouraging
companies to disclose their targets and progress publicly, demonstrating atransparent commitment to addressing climate change. The SBTi is crucial
in mobilising corporate action on climate change, contributing significantly
to global efforts to mitigate the effects of climate change and build a moresustainable future.

engender for the transport sector. Moreprecisely, Book and Claim—especially whenrespecting rigid rules to keep the solutions
they rely on close to physical reality—brings
tangible emissions reductions and poursinvestments into projects that can further
accelerate decarbonisation efforts within
the same value chain.
Lastly, numerous critics challenge therobustness and efficacy of offsetting
solutions, thereby jeopardising thecredibility of emerging systems like Book
and Claim. Institutions such as the GHG
protocol and SBTi have a unique opportunity
to support transport decarbonisation.
Recognising market-based solutions like
Book and Claim should be applauded andprioritising positive impact is paramount.
It is of utmost importance that this isdone properly, especially as the world justrecorded its hottest year on record in 2023.

It sends a clear signal that high-quality Book
and Claim solutions must be differentiatedfrom offsetting practices, and should carry
more weight in carbon reports.
In many instances, offsetting certificatesare easier to generate in larger quantities
and at a lower price. However, the value theybring can’t be put on the same level as the
positive change that Book and Claim can

26	Greenhouse gas protocol. Market-based and Project Accounting
Approaches: Where We Are Now
27	Statement from the SBTi Board of Trustees on use of environmental
attribute certificates, including but not limited to voluntary carbon
markets, for abatement purposes limited to scope 3 - Science Based
Targets

11

24

Book and Claim

25

Conclusion
As we navigate the complexities ofdecarbonising road freight, one thing
becomes abundantly clear—the need forinnovative solutions like Book and Claim
has never been greater. In the face of
unprecedented climate challenges, weneed to leverage pragmatic tools that offera pathway to reducing emissions within
the road transport sector and mitigate ourGlossary
impact on the environment. The time foraction is now, and the recognition of Book
and Claim is a crucial step towards realising
our collective ambition of a carbon-neutral
future. Let us not underestimate the powerof this simple yet transformative concept.
Instead, let us embrace it wholeheartedly
and pave the way for an electric road freight
future.

BEV

Battery-electric vehicles

CAPEX

Capital expenditure

FCEV

Fuel-cell electric vehicles

GHG

Greenhouse gases

GLEC

Global Logistics Emissions Council

HVO

Hydrotreated vegetable oilICEInternal Combustion Engine

LETS

Low-Emission Transport Service

MBM FW	Market Based Measures Framework for Logistics
Emissions Accounting and Reporting

Would you like to know
more about the topic?
Reach out to john.dedryver@kuehne-nagel.com
or Join the Book and Claim community

SAF

Sustainable Aviation Fuel

SBTi

Science-based targets initiative

SMF

Sustainable marine fuelTCO

Total cost of ownership