ISCC PLUS International Sustainability and Carbon Certification

I. Certification Framework and Core Standards

1. Scope and Applicable Scenarios
   ISCC PLUS 是 voluntary certification system, applicable to the full supply chain certification of bio-based, circular/recycled, and renewable raw materials, encompassing food, feed, chemicals, plastics, packaging, textiles, and other sectorsiscc-system.org. Its certification scope covers not only agricultural and forestry biomass but also waste materials, non-biological renewable materials (such as green hydrogen), and synthetic fuels. For example, the Haru Oni project in Chile obtained ISCC PLUS certification, achieving full lifecycle sustainability verification for renewable-energy-based hydrogen production and synthetic methanol。
2. Six Core Principles

• Zero Deforestation: Strictly protects primary forests, high-carbon-stock land (such as peatlands), and biodiversityiscc-system.org。

• Good Agricultural Practice: Promotes eco-friendly cultivation and reduces the use of chemical fertilizers and pesticides.

• Social Equity: Protects labor rights and prohibits forced labor and child labor.

• Compliance: Ensures the entire supply chain complies with international and local laws and regulationsiscc-system.org。

• Continuous Improvement: Optimizes sustainability performance through annual audits and risk assessmentsiscc-system.org。

• Transparent Traceability：采用 Mass Balance methodology 实现原料流向的可追溯性。

3. Key Updates for 2025 Standards

• Strengthened Forest Biomass Certification: ISCC PLUS adds full-chain audit requirements for forest biomass, which must comply with the six principles of the EU RED III standard, including deforestation bans and high-carbon-stock land protectioniscc-system.org。

• Expansion into the Chemical Sector: Collaborates with enterprises to add chemical category certification; for instance, Allnex promotes the inclusion of new sustainable resin products under ISCC PLUS to support the decarbonization of the chemical industry。

• Deepened Circular Materials Requirements: In response to the EU's 2025 plastics recycling rate requirements (e.g., PET bottles containing 25% recycled material), ISCC PLUS has optimized certification methods for recycled plastics, strengthening compliance reviews of waste sources.

II. Certification Process and Implementation Details

1. Certification Steps

• Application and Registration: The enterprise selects a certification body (e.g., SGS, CTI) and submits application forms and supply chain documentation。

• Audit and Corrective Actions: The certification body conducts on-site audits of raw material procurement, production records, carbon footprint calculations, etc.; the enterprise must complete corrective actions for non-conformities within 40 days.

• Certificate Issuance and Publication: Upon approval, certificate information is published on the ISCC official website; valid for 1 year with annual renewal required.

2. Carbon Footprint Accounting Methodology

• Applicable Standards: Uses ISO 14067 rules combined with the Ecoinvent v3.10 database to calculate full lifecycle carbon emissions from raw material collection to product shipment (Cradle to Gate)。

• Exclusions: CO₂ absorbed during biomass growth is excluded from the carbon footprint; only processing-related emissions are accounted for。

• Case Reference: DIC Group used the Mass Balance method to allocate bio-based raw materials to epoxy resin products, achieving a 19.4% reduction in CO₂ emissions。

3. Add-on Modules and Policy Alignment

• Voluntary Add-ons: Enterprises may opt for add-on certifications such as the EU Anti-Deforestation Regulation (EUDR) and Non-GMO to enhance market competitiveness。

• Policy Response: ISCC PLUS is highly compatible with the EU's Carbon Border Adjustment Mechanism (CBAM) rules; its carbon footprint data can be directly used to calculate the carbon cost of imported products, avoiding trade barriers. For example, starting October 2025, the EU will impose a 20% tariff on bio-based products without ISCC certification.

III. Differentiating Advantages versus Other Systems

1. Comparison with ISCC EU

• Scope: ISCC EU is a mandatory certification under the EU RED II Directive, covering only the biofuel and energy market; ISCC PLUS is voluntary and covers a broader range of industrial and consumer product sectors。

• Flexibility: ISCC PLUS allows enterprises to select add-on modules (e.g., circular materials, green hydrogen) based on market needs, whereas ISCC EU must strictly follow EU regulations。

2. Comparison with REDcert2

• Industry Focus: REDcert2 primarily targets biofuel supply chains, while ISCC PLUS places greater emphasis on the circular economy and applies to non-energy sectors such as chemicals and plastics。

• Traceability Mechanism: Both adopt the Mass Balance method, but ISCC PLUS enforces stricter audits of social standards and land use。

IV. Industry Applications and Case Studies

1. Circular Economy Benchmarks

• Tire Recycling: Hengyu Environmental obtained ISCC PLUS certification by pyrolyzing waste tires into recovered carbon black and pyrolysis oil, achieving “tire-to-tire” closed-loop production。

• Plastics Recycling: Jingbo Zhongju uses pyrolysis oil to produce ISCC PLUS-certified butyl rubber, with its brominated butyl rubber products achieving a 25% lower carbon footprint compared to conventional processes。

2. Breakthroughs in Emerging Energy

• Green Hydrogen: INEOS Inovyn became Europe's first ISCC PLUS-certified green hydrogen producer; its Antwerp plant uses wind power for water electrolysis to produce hydrogen, with an annual capacity of 60,000 tons.

• Synthetic Fuels: Chile's Haru Oni project combines renewable-electricity-based hydrogen production with CO₂ capture to produce carbon-neutral methanol, which can directly enter the EU fuel market after certification。

3. Policy-Driven Market Demand

• EU Carbon Border Adjustment Mechanism (CBAM): Starting 2026, ISCC PLUS-certified carbon footprint data will become a required credential for exporting products such as chemicals and steel to the EU, helping enterprises avoid additional carbon costs.

• E-Commerce Platform Advantages: Amazon has made ISCC PLUS certification a core requirement for its “Climate Pledge Friendly” label, and certified products see a 42% increase in conversion rate.

V. Certification Value and Implementation Recommendations

1. Enterprise Benefits

• Market Access: Obtains a “green passport” to markets such as the EU and Southeast Asia; for example, after obtaining certification, Marriott Energy's liquefied biomethane successfully entered the EU energy market。

• Brand Premium: Certified products can achieve a 10%-30% premium in international markets; for instance, demand for ISCC PLUS-certified bio-based plastics in the European market is growing at over 15% annually.

• Risk Mitigation: Reduces ESG investment and trade barrier risks through supply chain audits and carbon footprint disclosure。

2. Implementation Pathway

• Phased Certification: It is recommended to start with raw material procurement and progressively expand to production and sales. For example, Lianke Technology first certified its carbon black products through SGS, then expanded the scope to its trading subsidiary.

• Digital Tools: Adopt ISCC-recommended Mass Balance management systems (such as SAP or customized ERP) to improve data accuracy and audit efficiencyiscc-system.org。

• Policy Monitoring: Closely monitor regulatory developments such as the EU RED III and the US LCFS, and adjust certification strategies in a timely manner to align with the latest requirements。

VI. Future Trends and Challenges

1. Technology Integration

• Digital Certification: ISCC is exploring the application of blockchain technology for supply chain traceability, with plans to launch pilot projects before 2026iscc-system.org。

• Carbon Capture, Utilization and Storage (CCUS): ISCC plans to include CO₂ from Direct Air Capture (DAC) within its certification scope, with relevant guidelines expected to be released by the end of 2025iscc-system.org。

2. Global Rollout Challenges

• Regional Disparities: Developing countries show uneven enforcement of social standards, requiring enhanced training and capacity building. For instance, ISCC has launched a “Sustainable Palm Oil Certification Acceleration Program” in Southeast Asiaiscc-system.org。

• Cost Pressure: Certification fees for SMEs (approximately RMB 10,000-30,000/year) and data management investment may pose obstacles; it is recommended to reduce the burden through industry associations or government subsidies.

Conclusion