Abra Group and Sumitomo sign MoU to advance affordable SAF in Brazil
- Abra Group and Sumitomo Corporation do Brazil – a subsidiary of Sumitomo Corporation – signed a MoU to accelerate industry solutions to decarbonize the air transport sector, with the goal of addressing the high cost of Sustainable Aviation Fuel (SAF)
- Partnership seeks to tackle barriers to sustainable and equitable solutions, working towards the realization of the Brazil-Japan Joint Crediting Mechanism and paving the way to a long-term offtake agreement for SAF
- MoU represents a best-practice model for cross-border climate collaboration, in line with COP30 objectives and UNFCCC Principles.
Abra Group and Sumitomo Corporation do Brasil (Sumitomo), a subsidiary of Sumitomo Corporation, announced the signing of a Memorandum of Understanding (MoU) to accelerate the identification of industry solutions for decarbonization in the air transport sector.
Under the MoU, Abra – engaged in Brazil via its subsidiary Gol Linhas Aéreas – and Sumitomo will jointly engage with stakeholders, including both the Brazilian and Japanese governments, for the realization of a Brazil-Japan Joint Crediting Mechanism (JCM) under Article 6.2 of the Paris Agreement. This will then pave the way for a long-term offtake agreement of Sustainable Aviation Fuel (SAF) between Abra and Sumitomo.
Global demand for SAF is expected to reach 400 million tons by 2050, with demand from developed economies with limited feedstock availability, such as Japan, Singapore, and the European Union, placing increasing pressure on the aviation industry to decarbonize. Brazil is well positioned to become a leading global SAF producer, supported by abundant feedstocks, a longstanding ethanol and biodiesel tradition and a strong commitment to renewable energy. However, securing financing for SAF projects – and ensuring Brazilians continued access to essential, affordable, aviation – remain key challenges. The JCM has the potential to bridge these gaps. JCM is Japan’s bilateral carbon offset scheme initiated in 2011, and allows Japan to collaborate with developing economies to accelerate emissions-reduction projects abroad while receiving a proportion of the resulting carbon credits to support its national climate targets.
The combined approach of Abra and Sumitomo provides mutual benefits, while also delivering direct advantages to the Brazilian and Japanese governments, SAF producers in Brazil, domestic airlines and airline customers from both countries.
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