• NEW PARTNER: EUROPEAN REGIONS AIRLINE ASSOCIATION (ERA)
• NEW KEYNOTE SPEAKER: WILLIE WALSH, CEO OF IAG (BRITISH AIRWAYS & IBERIA)
• EARLY BIRD DISCOUNTS AVAILABLE UNTIL 31 DECEMBER 2012 - CLICK HERE AND BOOK NOW!
Dear Aviation Colleagues,
We are delighted to report that the European Regions Airline Association (ERA), which represents 60 intra-European airlines, is now backing Aviation Carbon 2013. The ERA becomes the third industry association partner along with the Arab Air Carriers Organization (AACO) and the International Emissions Trading Association (IETA). In case you are not aware “Green Aviation” is a co-organiser of the series of conferences.
We are also thrilled to announce that Willie Walsh, CEO of International Airlines Group (holding company of British Airways and Iberia), will deliver the opening keynote address at Aviation Carbon 2013.
The recent ‘stop the clock’ proposal by the European Commission to suspend intercontinental flights from the EU ETS for one year has been welcomed by many but it has major implications for all airlines and business jet operators, regardless of nationality, as well as for the carbon markets.
Aviation Carbon 2013 is timed perfectly to allow all stakeholders to learn about the status, consequences and impact of the proposal, and at the same time receive practical advice and the latest up-to-date information on administrative issues and trading in the carbon markets.
Aviation is about to face a landmark year as efforts towards a global carbon scheme gather pace at ICAO. Aviation Carbon 2013 will bring delegates up to speed on progress and inform them on what the scheme might look like.
The line-up of distinguished speakers confirmed so far include:
▪ Pierre Albano, Head of Environment, Air France
▪ Andreas Arvanitakis, Director, Advisory Services, Thomson Reuters Point Carbon
▪ James Atkins, Chairman, Vertis
▪ Dirk Forrister, President and CEO, International Emissions Trading Association (IETA)
▪ Philip Good, DG Climate Action, European Commission
▪ Tim Johnson, Representative to ICAO, International Coalition for Sustainable Aviation (ICSA)
▪ Jérôme Lesourd, Head of the ETS unit, Direction Générale de l’Aviation Civile (DGAC)
▪ Eyup Ozbay, Agreements & Risk Management Supervisor, Turkish Airlines
▪ Annie Petsonk, International Counsel, Climate & Air, Environmental Defense Fund (EDF)
▪ Michael Schneider, Assistant Director, Carbon Offset Business Development, IATA
▪ Trevor Sikorski, Director, Commodities Research, Barclays Capital
▪ Robin Smale, Director, Vivid Economics
▪ Paul Steele, Executive Director, Air Transport Action Group (ATAG)
▪ Abdul Wahab Teffaha, Secretary General, Arab Air Carriers Organization (AACO)
▪ Guy Turner, Director, Commodity Market Research, Bloomberg New Energy Finance
▪ Mladen Vukovic, Senior Advisor – EU ETS, United Kingdom Environment Agency
▪ Willie Walsh, CEO, International Airlines Group (IAG)
As our substantial early bird discount expires on 31st December we urge you to take advantage without delay.
FOR MORE INFORMATION AND TO REGISTER GO TO WWW.AVIATIONCARBON2013.COM
We are once again proud to announce that Green Aviation will be media partners to “World Biofuels Markets” on 12—14 March 2013 at the Beurs-World Trade Center, Rotterdam, Netherlands!
The last conference back in February this year saw its largest ever attendance from the aviation sector. This annual conference and exhibition covers all transportation sectors and traditionally aviation has occupied a small side room for half a day. This year Aviation was given a two day schedule and attendance was varied but we estimate peaked at more than a hundred people. Next year will also feature a dedicated stream for aviation. For more information click on the image above.
One of the most ambitious projects covered in the 2012 conference was the initiative between British Airways and Solena to produce a waste-to-biofuels plant in East London, or nearby, with several potential sites identified in the area. BA expects planning permission to be granted and for work to start in 2013 with an 18 month build completion timescale. The investment will be $350 million and initially produce enough fuel per day to fill 80 tanker trucks. This represents around 2% of BA’s fuel needs in the London area and this initial batch will be used exclusively at the nearby London City airport. Despite the huge investment the business case is made on the existence of the waste used avoiding a $100 per tonne landfill tax.
Elsewhere a Dutch company SkyNRG is supplying several airlines’ trials of biofuel flights with waste oils from catering use and then converted to biofuel. Lufthansa has a partnership with Finnish company Neste and is using a 50% biofuel / kerosene mix on all flights of one dedicated A320 aircraft between Frankfurt and Hamburg for several months, with no adverse events and no apparent differences in engine performance or exhaust deposits.
All this increased activity, and more, bodes very well for the future of sustainable biofuels in aviation, but the crux of the matter is the same for all airlines – how to get sufficient quantities of biofuel and at the right price? Given the technical approval (ASTM D7566) of the 50% biofuel / kerosene mix last year there has certainly been a noticeable increase in interest and investment, and a forecast in the UK Sustainable Aviation Roadmap that by 2050 sustainable biofuels will contribute an 18% reduction in aviation emissions. Personally I am more optimistic as more projects and investments come on-stream it could lead to a snowball effect. Additionally, not only can airlines adopt biofuels to mitigate the EU ETS and other such emissions capping schemes in the future, but I suggest it is increasingly important to develop a strategy of weaning off fossil fuels as an energy security policy and to gain a better price predictability and stability to offer a significant competitive advantage; one major US carrier has adopted exactly such an approach.
21 Dec 11 - Finally the European Court of Justice has announced its long-awaited ruling in relation to the legal action initiated by the US and Canadian airlines and associations against the European Emissions Trading Scheme (EU ETS). In its judgment delivered today, 21 Dec, the judges at the European Court of Justice confirmed the validity of the EU ETS directive that includes aviation activities in the emissions trading scheme.
The Court’s first point was that it established that the EU is not bound by the Chicago Convention because it is not a party to that convention. Its second point relating to the Kyoto Protocol, the Court observed that the parties to the protocol may pursue limitation or reduction of emissions from aviation fuels outside of ICAO.
The Court then examined whether the EU ETS directive is compatible with the principles of customary international law and the Open Skies Agreement. It judged that the EU ETS is not intended to apply to aircraft flying over the high seas or over the territory of the Member States of the EU or of third States and it is only if the operators of such aircraft choose to operate a commercial air route arriving at, or departing from, an airport situated in the EU that they are subject to the EU ETS.
In relation to the operator of an aircraft being required to surrender emission allowances calculated on the basis of the whole of the flight, the Court pointed out that EU legislature may permit air transport to be carried out in its territory only on condition that operators comply with the criteria that have been established by the EU.
Finally, the Court responded to the claim that the EU ETS constitutes a tax, fee or charge on fuel in breach of the Open Skies Agreement. It ruled that the EU ETS does not infringe the obligation to exempt fuel from taxes, duties, fees and charges and that the actual cost for the operator depends, because it is a market-based measure, not directly on the number of allowances that must be surrendered, but on the number of allowances initially allocated to the operator and their market price when the purchase of additional allowances proves necessary in order to cover emissions.
The Court added that it cannot even be ruled out that an aircraft operator, despite having held or consumed fuel, will bear no pecuniary burden resulting from its participation in the emissions trading scheme, or will even make a profit by assigning its surplus allowances for consideration.
The Court concluded by stating that the uniform application of the scheme to all flights which depart from or arrive at a European airport is consistent with the provisions of the Open Skies Agreement designed to prohibit discriminatory treatment between American and European operators.
The full judgement is available at this shortened link: http://bit.ly/sMqkBV
The shortened press release is available at this shortened link: http://bit.ly/sXJMDx
So what does this mean for airlines?
In our view it means that nothing changes, the airlines should keep on complying with EU ETS as they have done so far until such a time that there lawyers may ever advise them not to do so. The EU have already stated that they are negotiating the possibility of agreeing “equivalent measures” with several non-EU States and if they should come to an agreement that might have a bearing on the inbound EU sector with those nations, but not on the ex-EU or intra-EU sectors.
Preparations for the information / education event for airlines on February 8th and 9th are fully underway. Strong votes of confidence have been gained with the support of the European Regions Airline Association, the Arab Air Carriers Organisation, and the International Emissions Trading Association who will be participating in the event with their members and providing expert input for the benefit of airlines and aircraft operators.
Are you an airline / operator in a country where there may be potential uncertainty about your involvement in the EU ETS and you are not sure whether to attend the event? It is important to remember that the EU has re-iterated their ETS is already fully incorporated into national laws and compliant with international laws and conventions. In the vacuum of a global emissions scheme for aviation the airlines will continue to be required to comply with EU ETS. The EU reps are talking with several non-EU States about the possibility of them agreeing to “equivalent measures” and should they be agreed, they say that it would only affect the carbon liabilities on inbound EU sectors to a smaller or greater extent, for those nations, but not alter the outbound EU and intra EU sectors. We will have an aviation legal expert and an EU representative present at the event who will provide you with the latest insights and suggestions on how the airlines can plan for various potential outcomes and uncertainties.
If you are an airline / operator due to be going through a tendering process to select a carbon trading partners, may we suggest that the event will be a perfect opportunity for you and your colleagues to learn more about the new procedures that you will need to follow, carbon, and emissions trading information to help you make more informed choices. There will also be the opportunity to meet various companies in the sector and ask them lots of questions and which really can add massive value to your tendering process and outcomes.
We are really looking forward to having a great programme for you packed with information and workshops to really get you up to speed and help you enhance your ability to make effective carbon and emissions decisions.
There is an opportunity for airlines and operators to gain significant discounts by making “earlybird” bookings by 31 December and for groups of 3 and higher.
The registration site is now live so please save the date in your schedule and go ahead and register your ETS team at AviationCarbon2012.com!
The 23rd of March 2011 was a very significant day in biofuel development. The Lausanne, Switzerland based “Roundtable on Sustainable Biofuels” (RSB) whose membership includes Boeing, UNEP, WWF, NWF, CI, IUCN and which our organisation Green Aviation is also a member, announced the launch of its accreditation system at the World Biofuels Market in Rotterdam. The RSB’s objective is that “Biofuels have the potential to contribute to climate change mitigation but their production shall not be at the expense of ecosystems or human rights, including food security: The RSB certification system ensures that biofuels demonstrate compliance with stringent social and environmental criteria.”
RSB press release in full -
“Since 2007, the RSB brings together farmers, industries, NGOs and governments to get a broad consensus on the social and environmental requirements to ensure sustainable biofuel production. Based on these requirements, the RSB certification system provides the assurances operators need to guarantee the sustainability and traceability of their feedstocks and fuels. The new RSB system can put them on a path towards compliance and certification for EU market access and other regulated markets. On March 18, 2011, it received provisional recognition by the Government of Germany under its regulatory scheme for biofuels.
On March 22, Boeing, an active RSB member, announced the launch of a partnership with the Roundtable on Sustainable Biofuels called the Sustainable Biomass Consortium (SBC), a research initiative focused on increasing collaboration between voluntary standards and regulatory requirements for biomass used to create jet fuel and bioenergy for other sectors. “The RSB standard is the result of a 4 year effort building a global consensus of over 120 organizations from farmers and biofuel producers to refiners, regulators, civil society and inter-governmental organizations.” said Juan Marco Alvarez, Director of the Economy and Environmental Governance group at the International Union for Conservation of Nature (IUCN). “The RSB has elevated the role of social and environmental safeguards, emphasizing the critical aspects of sustainability in the biofuels sector. It is now ready to start making it achievable.”
The RSB certification system is operated by RSB Services, which is the services body of the RSB, providing access to the certification process, licensing, auditors’ training among other activities. “The RSB certification system offers a unique set of online tools that take much of the complexity out of compliance” said Alwin Kopse, RSB Executive Secretary. ”We are delighted to provide biofuel operators with a truly comprehensive standard and a broad range of online tools to help streamline the compliance process from crop to tank.”
Biofuel operators that receive RSB certification will be able to:
• Assure their customers that their product is responsibly produced, positioning RSB-certified operators favorably in their procurement processes.
• “Know their biomass/biofuel” by being able to trace the origin of the product along the entire supply chain through various chain-of-custody models.
• Receive market recognition as leaders in biofuel sustainable production, which is increasingly important to regulators and major fuel buyers.
• Benefit from a competitive advantage from the RSB’s active work to prioritize certification of their entire supply chain, with clear benefits for their suppliers and customers at the same time.
The Roundtable on Sustainable Biofuels is a multi-stakeholder initiative hosted by the Energy Center of Ecole Polytechnique Fédérale de Lausanne (EPFL) that has developed a global sustainability standard and certification system for biofuel production. The RSB global sustainability standard, which defines the requirements to receive certification, represents a global consensus of over 120 organizations from farmers to refiners, regulators and NGOs and was intentionally designed to ensure the sustainability of biofuels production while streamlining compliance for industry.”
Engineers have developed a concept plane which they believe, might be similar to passenger planes in 40 years time. However in the past futurologists have been wide of the mark, with predictions of jet packs, flying cars, and cities in the sky. BBC Reporter Rajan Datar investigates whether, in the year 2050, we are really likely to be flying in transparent aeroplanes…and powered by solar energy!
Link to the BBC video
The eight of July 2010 has entered the history books as being an incredible achievement in the advancement of human flight. This morning at a small military airbase in Switzerland an experimental solar-powered aircraft launched on the previous day landed safely after successfully flying through the night. The incredible feat is a step toward the even more incredible aim of circling the globe using only the power of the Sun to fuel the plane.
The aircraft used super-efficient solar cells and batteries to stay in the air after the Sun’s rays had faded. The plane touched down at Payerne airfield at 0900 (0700 GMT) after a total flight time of 26 hours.
During the flight it reached a unbelievable height of 8,700 m (28,543 ft). It is the longest and highest flight recorded by a solar-powered plane. The aircraft was steered by Andre Borschberg, a former fighter jet pilot from Switzerland. The plane has 12,000 solar cells arranged on top of its wing which stored enough energy to power the plane for the flight through four engines.
The designers, the Solar Impulse team led by Mr Borschberg and fellow aviator Bertrand Piccard, say that this proves that a plane can be kept in the air around the clock. “Nothing can prevent us from another day and night, and the myth of perpetual flight.” The team will now build a new, more advanced, model of the plane and they plan to aim to circumnavigate the globe by 2013.
Read more about this amazing project at Solar Impulse
Image copyright of MIT/Aurora Flight Sciences
In what could set the stage for a fundamental shift in commercial aviation, an MIT-led team has designed a green airplane that is estimated to use 70 percent less fuel than current planes while also reducing noise and emission of nitrogen oxides (NOx).
The design was one of two that the team, led by faculty from the Department of Aeronautics and Astronautics, presented to NASA last month as part of a $2.1 million research contract to develop environmental and performance concepts that will help guide the agency’s aeronautics research over the next 25 years. Known as “N+3” to denote three generations beyond today’s commercial transport fleet, the research program is aimed at identifying key technologies, such as advanced airframe configurations and propulsion systems, that will enable greener airplanes to take flight around 2035.
Link to the complete article on the MIT site here
The International Energy Agency has recently warned that the price of carbon credits will need to reach $50 per tonne of CO2 by 2020 and $110 by 2030 to make high-tech solutions to climate change economically attractive. Carbon permits now trade at less than $20 a tonne in the European Union.
So what does that mean for airlines now entering the EU ETS? We at GreenAviation believe that following the generally recognised failure of the Copenhagen COP15 meeting in December the EU is likely in 2010-11 to take pro-active and unilateral steps to bolster their own commitments to tackling climate change and increase their CO2 reduction targets. In the long term this could result in a tighter carbon market and an increase in carbon prices for aircraft operators and other participants in the EU ETS.
However in the short term there is likely to be some downward pressure on the carbon price due to continued economic weakness and carbon allowance supply issues such as a high number of surplus permits from Bulgaria starting to enter the EU market from February 2010 onwards. In the medium term with a recovering economy and increasing oil price the the carbon price is likely to recover to 2007/08 levels and prices of EUR 25+ by 2012/13.
Regardless of any forecast, all of which could be way-off the mark (and indeed you must not consider our commentary as investment advice) all airline CFO / COO really need to do their own homework and consider taking specialist investment advice and decide if, and how much, carbon they should be purchasing in 2010 onwards to build up their carbon account for CO2 compliance in 2013. Or should they wait until 2013 and buy at auction or on the open market? What other options do aircraft operators have for minimising their ETS costs and risks? They really need to start thinking and planning for this now.
Green Aviation International can arrange advice with our experts to help aircraft operators make sense of carbon planning and purchasing. If you are an aircraft operator and would like to discuss your needs further or seek some initial guidance just provide your contact details here and we’ll arrange a free call to better understand your needs, with no further obligations.
To get the IAE report and related information go to their site here
You can check the link below the current and historic prices of CO2 on Europe’s biggest exchange, ECX.
December 2012 carbon prices ALREADY being traded today and it is important that airlines already recognise that a carbon market exists, as well as the huge potential volatility in market prices. Such volatility could costs airlines literally tens of millions of Euros / Dollars, even hundreds of millions, if they do not prepare for the ETS early enough.
Future Carbon Prices