The Book and Claim supply chain model
The book and claim approach is very different from other well-known chain of custody (COC) systems such as Mass Balance, Segregated and Identity Preserved. Removing the requirement for physical traceability through the palm oil supply chain, the book and claim system is designed to drive market uptake of certified sustainable material.
The idea is that while physical supply chains are being built, the book and claim option drives demand via the sale and purchase of certificates or credits. While creating critical mass of certified material, it also provides market access to all within the industry, regardless of their global location or size. Book and claim is an all-inclusive COC option.
Building critical mass
David Mclaughlin - WWF VP agriculture via the online publication Food Navigator USA.
The challenges relate to the complex nature of the global palm oil supply chain. While some refiners are vertically integrated, most are not.
Instead they are buying oil originating from multiple plantations that has been intermingled at every stage of the supply chain. And the costs of segregating oil from RSPO plantations throughout this chain are significant.
So significant indeed, that securing certified sustainable versions of palm kernel oil or some of the more complex palm derivatives used by many manufacturers remains prohibitively expensive.
But this doesn't mean that they should sit back and do nothing. My worry is that companies are using the absence of (affordable) segregated palm products as an excuse not to do anything. What they should be doing is buying GreenPalm certificates now to cover 100% of their palm oil usage so that it will be easier to make the transition to a physical supply chain in future.
Start with GreenPalm to 'move the needle' towards a physical, traceable, sustainable supply chain.
Buying certificates now might be the only way to stimulate enough production of sustainable palm oil to reach critical mass that will make fully traceable products economically viable in future.
Original article via Foodnavigator-usa.com
Example - Green Electricity
A well-known example of a book and claim system other than GreenPalm would be a green electricity tariff selected for domestic supply. The Green tariff chosen for your home or business supply would come at a premium above the standard tariffs, but the physical electricity you receive would remain from the same mixed sources.
The wind turbine or solar panel farm will produce the green electricity, supplying it to the country grid and it would be consumed somewhere in the country, or even exported.
Its unlikely and impossible to say whether the person or business buying the green tariff would actually receive the green electricity, however, the more people sign up to green tariffs, the more renewable sources companies invest in and the percentage of Green electricity supplying the grid increases.
What is a sustainable standard?