The Jet Zero Council, a collaboration with industry set up by the previous UK government, has been relaunched as the Jet Zero Taskforce, with the aim of streamlining aviation decarbonisation priorities as the sector strives to reach its net zero emissions by 2050 target. The Taskforce will support the production and delivery of sustainable aviation fuels and zero emission flights, as well as look at how to improve aviation systems to make them more efficient. It will also explore the sector’s demand for GHG removals and the non-CO2 impacts of aviation. The UK’s SAF mandate, which takes effect from January 1, has now officially been signed into law, requiring 22% of all jet fuel to come from sustainable sources by 2040. The government has also started a public consultation on the implementation of ICAO’s global carbon offsetting scheme CORSIA, how it will be regulated in the UK and the penalties for non-compliance.

The restructured Jet Zero Taskforce will feature an annual CEO-level meeting chaired by the UK’s Transport Secretary that will set priorities for tackling aviation emissions and review progress. Members will include the Secretary of States for Business and Trade, and Energy Security and Net Zero, plus CEOs of major airlines such as easyJet, British Airways and Virgin, airports like Heathrow and Manchester, as well as senior representatives from fuel producers, trade bodies and universities.

Below the executive Plenary level will be a smaller Expert Group to support the Taskforce’s priorities, which will be jointly chaired by the Aviation Minister, currently Mike Kane, and Holly Boyd-Boland, VP of Corporate Development at Virgin Atlantic. “By pinpointing key barriers to decarbonisation and directing a select number of smaller action groups to tackle these challenges, this level will be crucial to the delivery of the Taskforce’s objectives,” explained the Department for Transport, which acts as the secretariat.

“Taking up the role of industry chair is a huge privilege and I look forward to working alongside government, with its renewed focus and leadership of the Jet Zero Taskforce,” said Boyd-Boland. “Together, we can harness the ambition across industry to achieve net zero 2050.”

Added Tim Alderslade, CEO of trade body Airlines UK: “Collaboration with government and across the whole sector and supply chain is vital to making the rapid progress we need, and we look forward to working with the new Taskforce to help usher in a new era of sustainable air travel, with all the jobs and investment that entails.”

The first plenary meeting of the Taskforce took place on December 4.

A main priority is to support the development, production, commercialisation and use of sustainable aviation fuels in the UK and also globally. The government will invest up to £450,000 ($570,000) to support aviation decarbonisation measures in other countries, such as helping developing states develop policy and access financing for SAF, as well as to offset carbon emissions from international flights. The announcement coincided with the visit to the UK of the ICAO Secretary General, Juan Carlos Salazar, and the signing of a memorandum of understanding covering all areas of UK-ICAO cooperation.

The UK SAF mandate, which applies from 1 January 2025, has now passed into law. Starting at 2% of total UK jet fuel demand, equal to around 230,000 tonnes, the use of SAF is intended to increase on a linear basis to 10% in 2030 and then to 22% in 2040, after when the obligation will remain at 22% “until there is greater certainty regarding SAF supply,” says the government. The supply of HEFA-derived fuels will be capped after the first two years of the mandate, which will become more stringent over time. A separate obligation (0.2% of jet fuel demand) on power-to-liquid fuels kicks in from 2028 that reaches 3.5% of total jet fuel demand in 2040.

The mandate also introduces tradeable certificates for the supply of SAF, with additional certificates awarded for fuels with higher GHG emissions savings, and a buy-out price mechanism will operate to allow suppliers to discharge their obligation. It is intended that the value of certificates will narrow the gap between the price of kerosene and the cost of SAF, thereby encouraging the production of SAF.

However, the government acknowledges that the mandate alone may not provide sufficient long-term certainty to maximise investment in SAF production in the UK. It has therefore committed through legislation to introducing a revenue certainty mechanism by the end of 2026 to provide investor confidence.

CORSIA implementation

The government has also opened a public consultation on its proposals for how the UK will implement and regulate ICAO’s global Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which requires airlines to offset CO2 emissions on international routes above a given baseline (85% of 2019 emissions from international aviation). The consultation seeks feedback on proposed penalties for non-compliance.

It also includes proposals on how CORSIA can be implemented while maintaining commitments under the UK Emissions Trading Scheme (ETS), including how flights from the UK to Europe can be prevented from being subject to both schemes and measures “to ensure airlines are not unfairly burdened”.

Said the government: “This approach also aims to avoid unnecessary price increases for passengers, ensuring the UK’s decarbonisation efforts do not negatively impact those who rely on air travel.”

The UK is one of 129 countries now taking part in CORSIA and, with the mandatory phase starting in 2027, is offering support to other countries to help them participate in the scheme. The UK has already trained 11 other countries in Africa and other regions to apply the scheme.

“The UK is already at the forefront of global efforts to address climate change and carbon pricing schemes play a vital role in decarbonising aviation,” said Aviation Minister Mike Kane.

“The government is committed to supporting the aviation industry and with our Plan for Change at the heart, we’re helping the UK transition to a cleaner future in the most cost-effective way. We welcome all views on how airlines can continue participating in these crucial initiatives.”

The consultation has been welcomed by IATA. “We support the UK government’s plans to adopt and implement the scheme, and encourage countries to prepare for CORSIA implementation in full alignment with the ICAO CORSIA Standards and Recommended Practices, and to make the needed carbon credits available,” commented Marie Owens Thomsen, SVP Sustainability & Chief Economist.

The UK is implementing CORSIA in two parts, the first of which is the requirement to monitor, report and verify (MRV) CO2 emissions, and has already been incorporated into UK law. The second, on which the government is now consulting, concerns the requirement to offset CO2 emissions, including the applicability and calculation of offsetting requirements and cancellation of CORSIA credits, called Eligible Emissions Units (EEUs), and also the interaction between CORSIA and the UK ETS.

Penalties and enforcement for non-compliance with CORSIA’s MRV requirements are consistent with UK ETS legislation and the government proposes this approach is also followed for CORSIA’s offsetting requirements to ensure uniformity. Therefore applying a civil penalty of £100 ($130) for each CORSIA EEU that an aeroplane operator fails to cancel on time, as well as other non-compliance penalties.

The consultation will run until 10 February 2025.

Update 19 December: The Department for Transport has just released a 170-page technical guidance document and also a compliance document on the UK SAF Mandate.

Photo: Heathrow Airport

Christopher Surgenor

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The Lufthansa Group has introduced an environmental cost surcharge on all tickets issued from June 26 with departure from 1 January 2025 on flights from the 27 EU countries as well as the UK, Norway and Switzerland. The amount of the surcharge varies between 1 euro and 72 euros ($1.08 – $78), depending on the flight route. It is intended to partly cover “the steadily rising additional costs due to regulatory environmental requirements.” Specifically, Lufthansa cites the impact of the ReFuelEU sustainable aviation fuel statutory blending quota to be introduced for departures from EU countries from January next year, adjustments to the EU Emissions Trading System (EU ETS) and costs of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Luis Gallego, the CEO of International Airlines Group (IAG), which owns British Airways, Iberia and Aer Lingus and other European carriers, has told The Times that EU mandated net zero targets and the switch to SAF will push up air fares and have a big impact on demand.

In a statement, Lufthansa Group said it was investing “billions in new technologies every year” and was working with partners on innovations to help make flying more sustainably, and had actively supported global climate and weather research for many years.

“However, the airline group will not be able to bear the successively increasing additional costs resulting from regulatory requirements in the coming years on its own,” it said.

The EU SAF blending quota starts at 2% from 2025, 6% from 2030, 20% from 2035 and 70% from 2050. “For the Lufthansa Group, this will lead to additional costs in the billions in the future,” said the group, which includes Lufthansa, SWISS, Austrian Airlines, Brussels Airlines and Eurowings.

SAF accounted for around 0.2% of the group’s total fuel requirements in 2023, which it says makes it one of the largest SAF customers worldwide.

IAG’s Gallego, reported The Times, said the cost of compliance with the EU’s “demanding” targets could make European airlines less competitive and decarbonisation should be done in a consistent way worldwide that did not jeopardise European aviation.

IATA Director General Willie Walsh has already warned the SAF cost premium would lead to higher air fares. At its recent AGM in Dubai, IATA reported SAF production could rise to satisfy 0.53% of global demand for jet fuel in 2024 at a cost of $3.75 billion to airlines, representing an additional $2.4 billion to what it would cost to purchase the same quantity of conventional jet fuel. It estimated CORSIA-related costs would account for a further $600 million in 2024.

Photo: Lufthansa Group

Christopher Surgenor

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The EU’s Council and Parliament have reached a provisional agreement on revisions to the EU Emissions Trading System (EU ETS) rules applying to the aviation sector. A proposal by the Parliament, and backed by environmental groups and major European low-cost airlines, to include all international flights departing the European Economic Area (EEA) within the EU ETS was blocked by the Council, which represents EU member states. As a result of the trilogue talks, the EU ETS will apply only for intra-European flights – including departing flights to the UK and Switzerland – while ICAO’s CORSIA will apply to extra-European flights to and from third countries participating in the global scheme from 2022 to 2027. The two institutions agreed that after the next ICAO Assembly in 2025, the Commission will assess if CORSIA implementation is sufficient to reduce aviation emissions in line with Paris climate objectives. The co-legislators also agreed to fully phase out free emission allowances for aircraft operators between 2024 and 2026 but also set aside 20 million free allowances to incentivise the uptake of eligible SAF and to transfer 5 million allowances to an innovation fund. The agreement, which also addresses non-CO2 effects for the first time, has been both welcomed and criticised by the European airline sector.

Revisions to the Aviation EU ETS were first proposed by the European Commission in July 2021 as part of its ‘Fit for 55’ package to reduce overall EU emissions by at least 55% by 2030 compared to 1990 levels and to achieve climate neutrality in 2050. EU member states and the Commission have shown strong support for CORSIA, which was considered necessary to secure international backing for an agreement to adopt the Long-Term Aspirational Goal (LTAG) at the ICAO Assembly in October. The inclusion of emissions from extra-European flights into the EU ETS also risked confrontation with third countries, including the United States, which has legislation in place to prohibit US airlines from compliance with the EU scheme. An agreement was also reached at ICAO during the Assembly to strengthen the CORSIA baseline, despite initial opposition from the airline industry not to change the baseline that had been altered during Covid-19 to help airlines deal with the added financial burden of CORSIA offsetting compliance.

However, CORSIA is criticised as an ineffective scheme by environmental groups and others, who do not see it in step with the Paris Agreement 1.5C climate target and the net zero by 2050 goal for aviation emissions adopted by both ICAO and the industry. Under the scheme’s rules, it will not be reviewed again until 2025.

European NGO Transport & Environment said the failure to include long-haul flights in the EU ETS would result in 58% of Europe’s aviation emissions being unaccounted for and accused EU governments of cowardice. The trilogue outcome would also make international aviation one of the only sectors of the EU economy that will not fall under an emissions cap, it added.

“EU governments lacked the grit to push through a deal that was good for the climate and social justice,” said Jo Dardenne, Aviation Director at T&E. “Average European families will continue to pay much more for their CO2 emissions than frequent long-haul flyers. We are about to see another lost decade of climate inaction.”

Low-cost airline Ryanair, Europe’s biggest carrier, also condemned the decision not to include departing international flights in the EU ETS, which it blamed on the Commission.

“The Commission’s failure to support the Parliament vote means that Europe’s most polluting flights – long-haul and transfer passengers – that create the majority of EU aviation emissions, will continue to be exempt from paying their fair share of ETS taxes,” commented Ryanair CEO Michael O’Leary. “While the richest Americans, Europeans and Asians on long-haul flights pay zero environmental taxes, Europe’s most price sensitive passengers and their families travelling on short-haul flights, many to peripheral member states and who have no alternative to flying, are forced to pay all of Europe’s ETS taxes, while they generate less than half of EU aviation emissions. This is clearly unfair.”

In actual fact, when emissions from flights to and from outside the EEA reach levels above 85% of 2019 levels (the revised baseline agreed at the ICAO Assembly), they will have to be offset with corresponding eligible carbon credits purchased by the flight operator to be invested in emissions reduction projects. Of ICAO’s 193 members states, 118 have agreed to participate in the voluntary pilot and first phases (2021-2026) of CORSIA. Major aviation players China and India have yet to join though, so flight emissions between the two countries and the EEA will not be covered by CORSIA during this period.

After the next ICAO Assembly in 2025, the Commission will carry out an assessment of CORSIA as to whether it is meeting the objectives of the Paris Agreement. If it is then the Commission will make a proposal to the Council and Parliament to extend the “clean cut” between the two schemes. If deemed insufficient, the Commission says it will make a proposal to extend the scope of the EU ETS to all flights departing from the EEA.

“The deal reached on the scope of the ETS shows that work towards an effective global carbon price for aviation has only started,” said a statement from trade association Airlines for Europe (A4E), whose members include both low-cost and long-haul airlines. “This will build on the outcome of the ICAO Assembly in October. We must not forget that airlines have been paying for their emissions through the EU ETS since 2012. The cost of compliance for the ETS is likely to have increased five times in size by 2025 to over €5 billion ($5.3bn) annually.”

A4E expects the annual cost of compliance to both the EU ETS and CORSIA schemes to rise from €0.95 billion in 2019 to €7.6 billion in 2030 and €9 billion by 2035.

Another conflicting position between the Council and Parliament was over the phasing out of the free allowances granted annually to aircraft operators under the EU ETS. The Commission proposed all free emission allowances be phased out by 2027, to be replaced by full auctioning of allowances, a position backed by the Council. Parliament, on the other hand, voted for a faster phase out by 2025. The trilogue produced a compromise of 2026, a year earlier than proposed, with a phase-out of 25% in 2024 and 50% in 2025.

“A4E is extremely disappointed about the decision to phase out by 2026 free ETS allowances currently granted to airlines,” said the A4E statement. “This is well before truly effective decarbonisation solutions will be available at the scale needed for them to be effective.”

On the other hand, A4E welcomed an agreement on a new system of sustainable aviation fuel allowances under the EU ETS to help stimulate the deployment of SAF and also the transfer of 5 million allowances from the aviation sector to the EU’s Innovation Fund, which uses EU ETS revenues to support innovative low-carbon technologies.

The co-legislators also agreed to set aside 20 million free allowances to further incentivise the uptake of fuels that are deemed to be in the short-term a promising path for aviation decarbonisation by aiming to bridge the price gap with conventional jet fuel. All fuels eligible under ReFuelEU, except those derived from fossil fuels, will be eligible for the SAF allowances under a mechanism to be in place until 2030. Small islands, small airports and outermost regions will be able to cover the price differential between kerosene and eligible fuels with 100% of the SAF allowances in order to ensure the availability of the eligible fuels in these locations with specific supply constraints.

For all other airports, the coverage of the price differential will differ according to the type of fuel: 95% for renewable fuels of non-biological origin (RFNBOs); 70% for advanced biofuels; and 50% for other eligible fuels.

The agreement also provides for the implementation of a monitoring, reporting and verification (MRV) system for non-CO2 effects in aviation from 2025. By 2027, the Commission is required to submit a report based on the MRV and by 2028, after an impact assessment, the Commission will make a proposal to address non-CO2 effects.

“I’m glad that we have found an agreement that effectively paves the way for meeting our objective of reducing transport emissions by 90% by 2050,” said Marian Jurečka, the Czech Minister of the Environment, which currently holds the EU presidency. “It will allow us to address aviation emissions within the EU but also outside by appropriately aligning the EU ETS with CORSIA and to ensure that all airlines operating flights on the same routes are treated equally.”

The provisional agreement now requires formal adoption by the Council and the Parliament.

Meanwhile, the UK has signed a Memorandum of Understanding with Switzerland that states the UK’s intention to include flights from the UK to Switzerland in the UK ETS “as comprehensively as possible” by 1 January 2023. The UK ETS, which replaced the UK’s participation in the EU ETS on 1 January 2021, covers domestic flights, flights between the UK and Gibraltar, and flights to the EEA. It is likely the UK will mirror the EU Council and Parliament agreement to apply CORSIA to all other countries that have joined the ICAO scheme.

Following a decade of negotiations, ICAO’s member states have adopted at the conclusion of their 41st Assembly a collective long-term aspirational goal (LTAG) of reaching net zero carbon emissions for international aviation by 2050 that aligns ICAO with a similar commitment agreed by the industry last year and in line with the objectives of the Paris climate agreement. While setting a common global policy framework at a UN level, the goal does not assign binding targets to states or carriers and it will be up to countries to establish their own policies and measures to cut aviation emissions. While hailing the significance of the agreement, IATA Director General Willie Walsh said there was “not a minute to lose” and called on governments to work with the industry to decarbonise the sector, particularly on the deployment of sustainable aviation fuels that could mitigate up to 65% of the emissions needed for reaching net zero by 2050. The Assembly also agreed on a new lower CORSIA baseline from 2024 onwards, defined as 85% of CO2 emissions in 2019, a move previously resisted by the industry on cost grounds as it recovers from the impact of Covid.

“Countries have achieved some tremendous and very important diplomatic progress at this event and on topics of crucial importance to the future sustainability of our planet and the air transport system which serves and connects its populations,” said ICAO Secretary General Juan Carlos Salazar.

Congratulating ICAO states on the decision to back the industry goal, Haldane Dodd of the Air Transport Action Group said it was a milestone for the aviation sector. “The spirit of global cooperation has been on show at ICAO over the past year with governments making the most of the benefits of multilateralism,” he said. “But setting a goal is one thing, Making it a reality is where the hard work really begins and we need to continue – and accelerate – the efficiency improvements and energy transition that is already underway across the industry.”

Added IATA’s Walsh: “Now that governments and industry are both focused on net zero by 2050, we expect much stronger policy initiatives in key areas of decarbonisation, such as incentivising the production capacity of sustainable aviation fuels. And the global determination to decarbonise aviation that underpins this agreement must follow the delegates home and lead to practical policy actions enabling all states to support the industry in the rapid progress that it is determined to make.”

Efforts by states should now be focused on ways to incentivise an increase in SAF production capacity and thereby reduce its cost, he said. “The tremendous progress made in many economies on the transition of electricity production to green sources, such as solar power and wind, is a shining example of what can be achieved with the right government policies, particularly production incentives.

“The costs of decarbonising aviation are in the trillions of dollars and the timeline to transition a global industry is long. With the right government policies, SAF could reach a tipping point in 2030 that will lead us to our net zero goal.”

Walsh now wants the “aspirational” characterisation of LTAG “to be transformed into a firm goal with a clear plan of action” by the time of the next Assembly in 2025. “That means governments must work with industry to implement an effective global policy framework capable of attracting the financial resources needed to put aviation on an unstoppable track to achieve net zero by 2050. Governments must not lose the momentum that has driven the outcomes of this assembly.”

Dodd said many states will need help implementing a net zero pathway in their own country and financing the transition will be a priority. “Net zero aviation is a serious challenge but it is fully achievable if we work together across industry, government, the energy sector and finance communities,” he said.

Emerging economies with a fast-growing air transport sector, notably India and China, have argued their carriers would require until 2060 and 2070 respectively to achieve net zero emissions, implying the need for richer countries to reduce emissions even faster, said the International Council on Clean Transportation. “To build room for poorer countries to grow, richer countries will need to peak emissions even faster,” commented its Aviation Director, Dan Rutherford. “So the world will be looking for quick action from wealthier governments like the EU, US, Singapore and the United Arab Emirates. To get to net zero in 2050, we’ll need to peak emissions as soon as 2025.”

Dodd said the resolution is shaped to allow for different speeds of decarbonisation by countries around the world to ensure each government can respond to its own national circumstances but within a common global action framework. “Everyone is flying in the same direction towards net zero aviation by the middle of this century,” he added.

After the first periodic review of CORSIA, ICAO’s carbon offsetting scheme for international aviation, states agreed on another change to the all-important baseline, above which airlines are required to purchase and surrender units to offset the growth in emissions. Under the original design of the scheme adopted in 2016, the baseline was set at an average of 2019-2020 CO2 emissions from international aviation. When the Covid pandemic struck and brought air traffic to an almost complete halt, so skewing emissions in 2020, the industry successfully lobbied ICAO to change the baseline to the 2019 pre-Covid level for the pilot phase (2021-2023). Environmental groups, a number of whom believe CORSIA already to be an unambitious scheme, wanted a return to the original baseline whereas IATA advocated maintaining the 2019 baseline, on the grounds of increased costs to airlines.

Prior to the Assembly and after negotiations between states and an evaluation by ICAO’s CAEP technical committee, four options on the baseline were put to the ICAO Council, with a compromise option agreed of 85% of 2019 emissions baseline. During the Assembly, IATA changed its position to support the compromise, which was subsequently adopted by states, with the new baseline to take effect from 2024. Also agreed were revised percentages for the sectoral and individual growth factors to be used for the calculation of offsetting requirements from 2030 onwards.

Walsh commented the agreement would strengthen CORSIA but place a significantly greater cost burden on airlines. “So it is more critical than ever that governments do not chip away at the cement which bonds CORSIA as the only economic measure to manage the carbon footprint of international aviation,” he said. “States must now honour, support and defend CORSIA against any proliferation of economic measures. These will only undermine CORSIA and the collective effort to decarbonise aviation.”

The compromise did not please European clean mobility group Transport & Environment, which estimates the 85% baseline would mean just 22% of total international aviation emissions would be covered by the scheme and therefore offset in 2030. It said the low cost of offsets provided no incentive for the decarbonisation of the industry or the uptake of green fuels. T&E calculates €1.70 would need to be added to the price of a ticket to offset emissions on a flight from Europe to the US under the new baseline, compared with €2.40 for the average 2019/2020 baseline.

T&E is campaigning for all EU departing flights to be covered by the EU ETS as well as CORSIA. “This is not the aviation’s Paris Agreement moment. Let’s not pretend that a non-binding goal will get aviation to zero,” said Jo Dardenne, T&E’s Aviation Director. “If countries and industry are serious about this aspirational goal, they should stop bullying the EU out of its plans to finally price emissions from departing flights. The EU should not wait for many empty promises to move ahead with its SAF mandates and pricing of departing flights.”

Although criticising CORSIA’s lack of ambition, the Environmental Defense Fund (EDF) said the scheme was crucial for delivering monitoring, reporting and verification of international aviation emissions at the global scale and for hosting ICAO’s SAF framework.

“While ICAO missed a great opportunity to deliver greater CORSIA ambition, the 85% deal averted backsliding, an outcome that would have slashed CORSIA obligations for years,” said Pedro Piris-Cabezas, Director, Sustainable International Transport & Lead Senior Economist at EDF. “In parallel, the changes to the methodology to allocate obligations among air carriers paves the way for broader participation in CORSIA by addressing market distortions and equity issues. There’s much room for improvement and greater ambition for CORSIA, but this is a solid outcome that still gives us room to take a step forward.”

Representatives from the broader air transport industry welcomed the Assembly outcome. “This is a watershed moment in the effort to decarbonise the aviation sector with both governments and industry now heading in the same direction,” commented Luis Felipe de Oliveira, Director General of Airports Council International. “On a global scale, airports and ACI remain fully committed to reach this net zero goal and we look forward to working together as one aviation ecosystem – so air transport can sustainably deliver socio-economic benefits to people and communities for generations to come.”

Civil Air Navigation Services Organisation Director General Simon Hocquard said: “Reducing the environmental impact of aviation is one of the most pressing issues facing our industry. So we are delighted that governments have backed aviation’s aim to fly net zero.”

The Director General of the International Business Aviation Council, Kurt Edwards, added: “We commend ICAO for embracing net-zero carbon emissions by 2050, aligned with the business aviation industry’s long-term commitment. It signals to the world that governments, joining industry, must redouble climate-action efforts to achieve the goal, including implementing policies to encourage greater availability of and access to sustainable aviation fuels for all operators around the world.”

Chair of the International Coordinating Council of Aerospace Industries Associations, Jan Pie, said: “States’ agreement on an ambitious climate target aligns with the industry goal and is a strong signal of leadership in the fight against climate change by the civil aviation sector. As we go forward with new technologies and work to assure 100% compatibility of engines and aeroplanes with sustainable fuels, we look forward to working with ICAO to help put those targets into action.”

Five leading European aviation associations, which came together to publish the Destination 2050 net zero roadmap in early 2021, said the ICAO agreement would play a key role in providing consistency among policies, create a level playing field and set the ground for the necessary regulatory certainty for investment and finance to secure a sustainable future for the global air transport sector.

One of the first governments to react to the net zero agreement was the UK, which launched the International Aviation Climate Ambition, now comprising 59 countries, at the UN COP26 in Glasgow last year. The government said the initiative “played a critical role” in securing the Assembly agreement, which was in line with the UK’s own Jet Zero commitment.

“Climate change is a global challenge which will only be tackled by nations across the world working together towards clear, shared goals,” said UK Transport Secretary Anne-Marie Trevelyan, describing the collective net zero goal as an historic milestone. “It represents years of tireless work by the UK and its partners to lead the world towards a clean future for all.”

There was near unanimous support by the 184 states attending the Assembly for the LTAG and CORSIA draft resolutions presented for adoption, with objections (‘reservations’) only from China and the Russian Federation.

During the Assembly, for the first time since joining ICAO, Russia failed to win enough votes in the ballot to be re-elected for the new three-year term of the 36-member ICAO Council.

(L-R) Jane Hupe, Deputy Director, Environment, Air Transport Bureau, ICAO; Juan Carlos Salazar, ICAO Secretary General; Poppy Khoza, Director General of Civil Aviation of South Africa and the first ever female President of the ICAO Assembly; Salvatore Sciacchitano, President of ICAO Council; Mohamed Khalifa Rahma, Director, Air Transport Bureau, ICAO

A wide array of sustainability storylines topped the agenda at IATA’s 78th AGM with the prospect in sight of a sustainable aviation fuels (SAF) production “tipping point”, the necessity of achieving a Long-term Aspirational Goal (LTAG) on emissions from international aviation at the ICAO Assembly in late September, and the risk of CORSIA being derailed, reports Mark Pilling from Doha. The meeting came only eight months after last year’s AGM, which approved the resolution for the global air transport industry to achieve net zero carbon emissions by 2050, described as a “momentous decision” by IATA SVP Environment & Sustainability Sebastian Mikosz. Airlines are more committed than ever on achieving net zero, he said, but needed an agreement on an LTAG. IATA Director General Willie Walsh said failure by states at the Assembly or a “polite agreement to kick the can down the road” would be “unacceptable outcomes”. As was demonstrated at the AGM, the industry’s net zero goal has resulted in a huge focus on SAF in order, according to IATA’s roadmap, to fulfil aviation’s net zero commitment.

Current estimates are for SAF to account for 65% of aviation’s carbon mitigation in 2050. That would require an annual production capacity of 449 billion litres. Investments are in place to expand SAF annual production from the current 125 million litres to 5 billion by 2025. IATA’s tracking of current SAF projects indicates that production could reach 30 billion litres by 2030, said Mikosz. There are at least 10 SAF plants coming online by 2025, each with capacity of 5 billion litres annually, a hike of 50 times what was available in 2021.

In Doha, IATA called for governments to urgently put in place large-scale incentives to rapidly expand the use of SAF. “Governments don’t need to invent a playbook. Incentives to transition electricity production to renewable sources like solar or wind worked,” said Willie Walsh, IATA’s Director General. “As a result, clean energy solutions are now cheap and widely available. Though still far from where we need to be, it would be a clear tipping point towards our net zero ambition of ample SAF quantities at affordable prices.”

Mikosz contrasted the governmental policies that promote SAF, with IATA favouring the US approach of giving industry incentives or tax credits whereas the European Union is going down the mandate route. The latter policy is less favourable because “it puts pressure on costs but not pressure on production,” believes Mikosz. “The SAF mandate in the EU is not the most efficient and can dilute environmental benefits.”

In the US, which is setting an example for others to follow, SAF production is expected to reach 11 billion litres in 2030 on the back of heavy government incentives, said IATA. Europe, on the other hand, is the example not to follow, it argues. “Under its Fit for 55 initiative, the EU is planning to mandate airlines uplift 5% SAF at every European airport by 2030. Decentralising production will delay the development of economies of scale. And forcing the land transport of SAF will reduce the environmental benefit of using SAF,” said the association.

At the event’s closing press conference, Walsh also called on the energy giants to step up further. “There is plenty of room for them to do a much better job in relation to sustainable fuels. Progress to date is measured in words rather than actions.” Akbar Al Baker, Qatar Airways Chief Executive and AGM host, added: “The pressure on these companies to move to SAF will be immense; they will have no option but to turn to it.”

According to Walsh: “The bottom line is that an opportunity is here. This is a business opportunity. It is a business opportunity for countries. You no longer need to have oil in the ground to produce fuel. If the oil majors don’t do it, they will no longer be the only people [in the fuel supply market].”

Asked about his airline’s views on SAF, Al Baker said it had been working for a decade with the Qatar University on SAF research. “The results are very positive and once they master the process, they will be able to produce a large amount of SAF.” He noted that some shippers are already asking his airline if it is using SAF, and are willing to buy it if available. However, on today’s price premium for SAF, Al Baker is clear: “I have no problem to pay 20% more [for SAF] to fuel my aircraft but I won’t pay 4-5 times more.” He is also unenthusiastic on deals that are ambiguous about what the price will be on delivery of SAF. “How can you have a contract when you don’t know how much they are going to charge you?” he questioned.

Whichever policy approach is better for incentivising its production, “as an industry we have created a demand point,” said Mikosz. By 2025, IATA estimates there will be at least $30 billion in forward purchase agreements for SAF, up from the $17 billion to be made this year. By 2025 there will have been 2 million flights where SAF will have been used, forecasts the industry body, up from 450,000 in 2022. By 2025, IATA also believes there will be 11 technical pathways approved for SAF production, up from the seven approved today.

However, there is a significant geographic disparity on SAF production plans, with plants coming on stream in Europe, North America, Singapore and China, but none in Africa or the Middle East, and only one in Latin America. This shows why a book-and-claim system is important, so airlines anywhere can buy and achieve the benefit of SAF, said Mikosz.

IATA also gave more detail on the need for offsetting and carbon capture to meet net zero by 2050. The use of Carbon Capture, Utilisation and Storage (CCUS) was called out more specifically by IATA at Doha. “We consider CCUS as part of the offsetting approach,” said Mikosz. “Offsets are a gap filler and there is no plan that doesn’t have a bit of offsets in it to reach net zero by 2050,” with up to 19% coming from these two sources. However, he added, “they will play a diminishing role in the industry strategy as other technologies develop.”

As with SAF, airlines are creating a demand signal for CCUS, a solution that removes carbon from the atmosphere and has a major advantage in that it is one of the components needed to manufacture power-to-liquid eKerosene, said Mikosz.

IATA used the AGM to urge governments to adopt a Long-term Aspirational Goal (LTAG) to decarbonise aviation “aligned with industry commitments” at the 41st ICAO Assembly starting in late September. Mikosz indicated he would be “extremely disappointed” if ICAO did not agree an LTAG as its own technical studies and scenario planning showed how crucial it is to decarbonise air transport and spell out the cost.

IATA has confidence that it will be adopted but whether it is aligned with the industry’s 2050 target is another question. However, Mikosz said IATA’s 2050 position would not change, with no ‘plan B’ in place if an LTAG is not agreed, leaving only the option to try again at the next Assembly in three years’ time.

At the AGM in Boston last October, China’s airlines voted against the industry target, arguing for a later date. Asked if there had been any rethink on the part of Chinese carriers towards IATA’s 2050 target since then, Mikosz confirmed Chinese airline chiefs had clarified to the IATA board in Doha that the position had not changed, and that they are adhering to China’s national policy of a 2060 decarbonisation date. One possibility at the ICAO Assembly is that states adopt different timetables, giving some states more time to reach net zero. However, said Mikosz, differentiated timelines “would not make me happy.”

ICAO’s carbon offsetting scheme CORSIA was another significant talking point in Doha. Despite its critics, “for our industry, CORSIA is a huge success because it is the only market-based measure agreed by an industrial sector to deal globally with emissions,” said Mikosz.

However, as Walsh said in his report to the AGM: “CORSIA is in danger. Governments are split on the baseline. It was meant to be the average of international emissions for 2019 and 2020. When CORSIA was agreed in 2016 nobody could have imagined that governments would stop airlines from flying for much of 2020,“ said Walsh. “After agreeing to remedy this by using only 2019 – the industry’s position – several governments now want to penalise us for not flying and have proposed to revert to the 2019-2020 average, irrespective of inequities.  

“On top of this, not all governments respect CORSIA as the single economic measure for international aviation that it was meant to be,” said Walsh. “The most worrying is the EU. Its parliament voted to apply its ETS [Emissions Trading System] on top of CORSIA, forgetting that the world unanimously rejected this extra-territorial ambition in 2012. We need a successful, fair and effective CORSIA. Our proposal is to maintain a 2019 baseline. If states want to be more ambitious, and they should, incentivising SAF is the way to go.”

Mikosz acknowledged that states have differing views on CORSIA and how much they should pay to decarbonise. For instance, countries like Brazil and India are concerned that as CORSIA moves into the mandatory phase of paying for offsets from 2027 it could penalise the growth of their air transport industries. “The biggest challenge is having a global system, but one that does not impact negatively the growth of the market,” he said.

In September, all eyes will be on the ICAO Assembly to see whether an LTAG can be agreed and how CORSIA will change. These are complex and challenging times for an industry seeking state backing and a global approach to sustainability. Walsh observed during his address: “This approach is in the DNA of aviation. It is how we tackled noise and improved safety. Achieving net zero by 2050 is as critical. Failure to agree on a long-term aspirational goal, or a polite agreement that kicks the can down the road, would be unacceptable outcomes.”

Photo: Sebastian Mikosz, IATA’s SVP Environment & Sustainability

Mark Pilling

GreenAir Contributing Editor

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As part of measures to revise the EU Emissions Trading System (EU ETS) to bring aviation in line with the bloc’s climate goals, the European Parliament has voted to apply the scheme to all flights departing the European Economic Area (EEA), to the anger of IATA. At present, the EU ETS covers only intra-EEA flights, as well as flights to Switzerland and the UK, but proposing to extend it to all international airlines serving the EU will raise concerns in countries outside Europe, says the airline body. The original scope of the scheme was to cover all flights arriving and departing EEA airports but after protests from third countries, particularly China and the US, the EU ETS was scaled back in 2013 under a ‘stop the clock’ mechanism to allow negotiations at ICAO on establishing an international agreement, which ultimately resulted in the CORSIA carbon offsetting scheme. The ‘stop the clock’ derogation ends in 2023 and unless extended again, the EU ETS reverts automatically to its original scope. Given Europe is pressing for a further agreement at ICAO on an international long-term emissions reduction goal, EU states will most likely oppose the Parliament’s position. Other measures agreed by MEPs include a quicker phasing out of free EU ETS allowances for airlines, the inclusion of non-CO2 emissions in the EU ETS and the creation of a SAF allowances pricing scheme.

Changes to the Aviation EU ETS is part of the EU’s ‘Fit for 55’ package that under European Climate Law plans to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, in order to reach climate neutrality by 2050.

In a plenary vote in Strasbourg on June 8, MEPs adopted their report on changes to the EU ETS for aviation with 478 votes in favour, 130 against and 32 abstentions, although proposals for the wider EU ETS were voted against and must now be revised, which may hold up the legislative timetable. Parliament representatives will hold trilogue discussions with the Commission and Council (EU member states) to agree a common position on the legislative proposals.

The agreement by Parliament to extend the EU ETS to apply to all flights departing from an airport located in the EEA, starting 30 April in the year after entry into force of the new rules, is necessary to ensure ambitious GHG emissions reductions in the aviation sector are in line with the Paris Agreement, “and to contribute to an international level playing field while ensuring equal treatment on routes,” said MEPs on the environment committee (ENVI), which has responsibility for the file.

As part of ‘Fit for 55’, in July last year the Commission proposed a number of amendments to the EU ETS Directive in respect of aviation’s contribution to the EU emissions reduction target. It provided for continued application of the EU ETS on intra-EEA flights, while applying CORSIA to extra-EEA flights. Industry association Airlines for Europe (A4E) warns the Parliament amendment to include extra-EEA departing flights in the EU ETS will have regulatory overlaps leading to a potential double burden for carriers, who may have to pay for the same emissions twice through both the EU ETS and CORSIA, it argues. However, the Parliament proposal attempts to get round this, stating: “In order to take account of the [European] Union’s commitment to, and its simultaneous participation in, CORSIA, the financial value of expenditure on credits used for CORSIA for flights from the EEA to third countries that are implementing CORSIA should be deductible from the financial obligations under the EU ETS.”

This would still leave flights to countries that have not yet agreed to join CORSIA, which include major aviation markets such as India and China, subject to inclusion in the EU ETS. When the EU decided in 2012 to include all flights to and from the EEA in the newly-adopted Aviation EU ETS, India and China, along with Russia, the United States and others formed a ‘coalition of the unwilling’ to fight the plan. China threatened to cancel a large order for Airbus aircraft and the Obama Administration passed legislation, which still stands, that gives powers to the Secretary of Transportation to prohibit US airlines from complying with the EU ETS. Trade body the Air Transport Association of America (now renamed Airlines for America) brought a case against the EU over the issue in the European Court of Justice.

Reaction from the global airline industry to the new proposal has been swift. “A unilateral decision by the EU to expand the scope of ETS extra-territorially to non-EU destinations will threaten the prospects for major global decarbonisation efforts,” said an IATA statement, which argued it would make the adoption of a long-term goal at ICAO unlikely and could “weaken and potentially dismantle the existing CORSIA agreement which states agreed would be the single global market-based measure applied to international aviation.”

Moreover, it added, expanding the EU ETS scope “would lead to serious distortion of competition and weaken the global competitive position of EU airlines and hubs.”

IATA Director General Willie Walsh described the Parliament decision as “disturbing”, adding: “Europe has already suffered the embarrassment of a unanimous global rejection of its misguided attempt to impose ETS extra-territorially in 2012. The impact of any regional initiative by the EU will be quickly neutralised or worse if it derails decarbonisation efforts in faster growing markets outside of Europe. Now is the time for Europe to support CORSIA and the adoption of ICAO’s long-term aspirational goal (LTAG), which will propel global decarbonisation efforts further.”

Unsurprisingly, the Parliament decision was welcomed by NGOs, including Transport & Environment (T&E), whose Aviation Director, Jo Dardenne, said: “Europe’s lawmakers have sent a clear signal. The bulk of Europe’s aviation emissions will no longer be ignored, marking a major step forward in tackling heavily polluting long-haul flights. It’s now up to national governments to make this a reality.”

More surprising is that there are major airlines in Europe that support a move to include all extra-EEA flights in the EU ETS. In February, T&E and four of Europe’s largest low-cost carriers – easyJet, Ryanair, Jet 2 and Wizz Air – issued a joint statement calling on EU policymakers “to address the imbalanced contributions of European airlines in tackling climate change” and that all flights departing from European airports “should abide by the same rules, regardless of destination.”

Said Michael O’Leary, Group CEO of Europe’s biggest airline, Ryanair: “It is crucial that legislative proposals, such as the ‘Fit for 55’ package, apply equally to all flights, regardless of destination or distance. There is no justification to exempt any flights, especially the most polluting indirect ones, which require at least two flights to reach their destination, and/or connect onto long-haul flights, which account for just 6% of Europe’s air passengers but over 51% of EU air travel CO2 emissions.”

Other proposals passed in the Parliament include a derogation from the EU ETS to be provided for emissions from flights between airports located in an outermost region and airports located in another EEA region, and flights between airports located within the same outermost region.

The Commission proposes the phasing out of free EU ETS allowances for aircraft operators towards full auctioning by 2027, but MEPs voted to bring this forward to 2025. However, their report calls for 75% of auction revenues primarily go towards innovations and new technologies to green the aviation sector, including for the development of sustainable aviation fuels. EU member states have so far rejected attempts by the Parliament to ring-fence auction revenues for aviation decarbonisation measures.

A4E said it was “extremely concerned” about the early phase-out of free allowances, which it says should be better aligned with the emergence of decarbonisation solutions, such as SAF, suggesting 2030 would be a better date “to mitigate competitive distortion with non-EU carriers and avoid carbon leakage.”

The trade body said airlines spent €950 million ($1bn) on EU ETS compliance in 2019, having to buy certificates for 60% of their emissions at a price of €25 ($27) per tonnes. “Buying allowances for 100% of 2019 emissions at today’s carbon price of €80 per tonne would amount to ETS compliance costs of €5.2 billion ($5.5bn) annually,” it estimates. “ETS costs may well reach €6 billion by 2025, even as aviation emissions decline.”

The decision by Parliament to include obligations for aircraft operators on non-CO2 emissions within the scope of the EU ETS was described as “premature” by A4E. “Further scientific and legal analyses are still needed on the exact impacts of non-CO2 emissions from aviation and how best to address them,” it said.

The Parliament report calls for a monitoring, reporting and verification (MRV) scheme for non-CO2 emissions – such as NOx, soot particles, sulphur dioxide and water vapour – from aircraft operators, “with a view to expanding the scope of the EU ETS to cover non-CO2 aviation emissions, if deemed appropriate.”

One proposal welcomed by A4E is for a newly created SAF allowances pricing scheme that would aim to bridge the price gap between conventional jet fuel and SAF. Airlines would be granted CO2 allowances equivalent to the amount of CO2 saved by uplifting SAF. Use of synthetic or renewable fuels of non-biological origin (RFNBOs) would count double. A4E believes such a scheme would reduce the total cost of the ReFuelEU Aviation proposal.

“For it to be successful, the SAF allowances system should increase overall SAF uptake across Europe and incentivise airlines to go beyond blending mandates, in turn reducing more CO2 emissions from the sector,” said A4E. “It would also strengthen local SAF production across Europe and help Europe to better compete with the US tax credit scheme of $1.50 to $2 per gallon.”

After the vote in the plenary, the ENVI rapporteur handling the EU ETS aviation file, Sunčana Glavak, said: “With the report, we are aligning the aviation sector with our climate goals. But within that process, we have to offer decarbonisation solutions for the sector, which we managed to achieve in the ENVI committee with the introduction of SAF allowances. We are all aware that we have to focus on our climate goals, but we also cannot allow the industry to bear the whole burden. We must preserve our mobility and industry.”

Photo: European Parliament plenary session

Two draft reports on European Commission proposals to amend the Aviation EU ETS directive and introduce a regulation to kickstart large-scale use of sustainable aviation fuels in the EU have been presented to European Parliament committees by their respective rapporteurs. The Commission is proposing a phasing out over three years of free allowances granted to aircraft operators under the EU ETS, with a transition to full auctioning in 2027, but the EP rapporteur calls for an accelerated transition. The amendments also take into account the introduction of the ICAO CORSIA international carbon offsetting scheme and the temporary geographic scope of the EU ETS, currently limited to intra-EEA flights under a ‘stop the clock’ measure, which is due to expire at the end of next year. The second proposal before the Parliament relates to the RefuelEU Aviation initiative that introduces a SAF blending mandate in the EU. The rapporteur calls for a flexibility mechanism for fuel suppliers and airlines to meet their obligations over a transitional period and the setting up of a new Sustainable Aviation Fund.

Both proposals are based on aviation’s expected contribution to the Union’s economy-wide emission reduction target laid out in the ‘Fit for 55’ legislative package published in July 2021, which envisions Europe becoming a climate-neutral continent by 2050 and reducing emissions by 55% in 2030 based on 1990 levels.

Opening a debate (recording here at 10:37:24) held by the Parliament’s environment committee (ENVI), the rapporteur responsible for the Aviation EU Emissions Trading System (EU ETS) legislative proposal by the Commission, Croatian MEP Sunčana Glavak, said “concrete and appropriate” measures were needed to reduce aviation emissions in line with EU climate law and commitments under the Paris Agreement.

Phasing out free allowances to aircraft operators one year earlier than proposed by the Commission, transitioning instead to full auctioning by 2026, would generate additional allowances to be auctioned in the period up to 2030, she said. The Commission puts the number of aviation allowances (each allowance gives the holder the right to emit one tonne of CO2) issued for 2021 at around 24.5 million, with 20.7 million issued for free and 3.8 million auctioned.

Volumes of EU ETS allowances are made available to the EU’s Innovation Fund, which is expected to provide around €25 billion ($28bn) of support over the period 2020-2030 for innovative low-carbon technologies. Glavak proposes in her draft report a “significant” amount of the fund should be earmarked for projects in the aviation sector, particularly those involving sustainable aviation fuels.

“It is important to consider instruments to help foster innovation and manufacturing inside the EU and to create a business ecosystem that would attract investment and result in new jobs,” said Glavak in the report. “This presents an opportunity for the EU to set the foundation for innovation breakthroughs in the global aviation industry.”

She said the EU was a global leader in the fight against climate change but it could not achieve the Paris Agreement commitments and environmental ambitions alone, and emphasised the need for a stronger CORSIA “fit for purpose” as part of the solution.

“Therefore, it is important to achieve the highest possible number of participating countries and to ensure that CORSIA is implemented in those countries by 2027 at the latest,” she said, adding that reported emissions data per airline should be published in a “user-friendly manner” by EU member states and the European Commission.

The original scope of the Aviation EU ETS, which was to regulate the emissions of all flights to and from airports in the European Economic Area (EEA), was curtailed shortly after the aviation sector entered the EU ETS in 2012 as a result of international pressure and to allow ICAO to agree a global market-based measure. Known as ‘stop the clock’, only flights within the EEA are currently subject to the EU ETS directive. However, this exemption ends automatically on 31 December 2023. The Commission proposal is to maintain the current coverage of intra-EEA flights, including departing flights to Switzerland and the UK (which have their own ETS schemes that include departing flights to EEA airports), and to apply CORSIA to flights to third countries that are participating in the ICAO scheme.

The rapporteur has agreed with the Commission’s proposal. However, there are some MEPs, such as Green MEP Bas Eickhout, who would like to see a reinstatement of the full scope.

Also calling for all flights to non-EEA destinations to be included in the EU ETS are four European low-cost carriers – easyJet, Ryanair, Jet 2 and Wizz Air – and European NGO Transport & Environment (T&E). They argue the proposal by the Commission fails to address the bulk of EU aviation emissions that take place on extra-EU flights, with departing long-haul flights alone representing just 6% of all flights but generating 51% of the emissions from European aviation.

“No exemptions should be granted, especially not to airlines operating transfer and long-haul flights, as some long-haul airlines and associated hub airports have asked for,” they said in a statement. “Their requests to have ETS and sustainable fuel costs subsidised for long-haul flights are unreasonable and unjustified.”

A spokesperson for T&E told GreenAir: “The Commission’s own findings show that CORSIA is the worst option for the climate and can’t be used to regulate emissions on extra-EU flights. It is a cheap offsetting scheme that continues to allow emissions to grow. And while industry often voices unsubstantiated claims of carbon leakage and competitiveness issues, the Commission’s study found that adding all flights to the ETS has large environmental benefits, relatively low cost impacts and the greatest positive impact on employment and the economy. Limiting the scope to intra-EEA not only fails to address the majority of aviation emissions, it also creates an unfair advantage for airlines operating predominantly in Europe.

“ICAO has had a decade to come up with an effective measure to reduce emissions and they have failed on all accounts. We cannot wait another decade trying to improve something that is doomed to fail. It is time for the EU to take action and do what is best for the climate.”

In June 2020, as a result of the dramatic downturn in 2020 traffic because of the Covid pandemic, ICAO agreed to an industry request to replace CORSIA’s 2019-20 emissions baseline (above which airlines from participating countries are required to offset emissions) with emissions from 2019 only. The Commission, in its legislative proposal, says the 2019 baseline should only apply in respect of emissions during the 2021-23 pilot phase of CORSIA and then revert to 2019-20 levels for subsequent years, which is agreed by the ENVI rapporteur.

Offering his support, Dr Peter Liese, a former rapporteur on the Aviation EU ETS and now rapporteur on the overall EU ETS legislation, said some had criticised the Glavak report as being unambitious while others had found it too ambitious, “but that is the essence of a good compromise.”

It is high time for full auctioning as there was little risk of carbon leakage in the aviation sector, unlike with other stationary industries, Liese told the ENVI debate. He recounted a meeting that had just taken place with a European shipping industry representative who had told him the EU should lead the way on tackling emissions from his sector as IMO, the UN’s maritime agency, had missed every opportunity for collective meaningful climate action.

“This is a voice from the maritime sector strongly criticising IMO,” said Liese. “My clear position, knowing both industries and the regulations, ICAO is worse. They have only delivered words, with no progress and not realising the climate challenge. We need to consider broadening the scope [of the EU ETS] when the time is right and keep this option on the table.”

He agreed that a significant part of the Innovation Fund should go towards aviation sustainability although funding should also be directed towards modal shift, particularly from air travel to railways.

While agreeing the aviation sector should benefit from the Innovation Fund, Bas Eickhout, a long-standing critic of the industry and ICAO, said financial support should go towards breakthrough technologies, like fuels, that offered “real innovation”, rather than to large companies like Airbus.

He revealed it was the intention to send again a group of ENVI members to Montreal to attend the ICAO Assembly in October. “I’m sure this time they will welcome us with open arms, as they didn’t last time,” he said tongue in cheek. “I’m looking for a change of heart there. If the EU had not taken steps in 2012 [when aviation was included in the EU ETS] I’m sure there would not have been any international action. We have to take the next step now. CORSIA, which is a pretty useless offsetting mechanism to be very honest, will not be enough. That is why I expected more ambition from the Commission in its proposal, both within Europe and also on flights going in and out of Europe. This is the moment to do that. We have to be tougher on the scope and free allowances.”

Eickhout also called for action on aviation’s non-CO2 effects. “How long has the Parliament being asking for this? We haven’t seen much movement from the Commission,” he complained.

Responding in the debate for the European Commission, Beatriz Yordi, Director for European and International Carbon Markets, said aviation was a key element of the ‘Fit for 55’ package and welcomed the Glavak draft report. Bringing forward the phasing out of free allowances by a year was a political decision, she said, but supported aviation participation in the Innovation Fund. Regarding aviation’s non-CO2 impacts, she said the Commission was fully aware of the issue but was concentrating on the impact of CO2.

She revealed that an impact assessment of the carbon costs of the EU ETS on intra-European flights would be less than 1% of airline operating costs by 2030, leading to an average extra cost of €2 per ticket.

Europe is playing a key role at the international level, said Yordi, adding: “We are supporting wide participation and a high level of ambition in CORSIA, and I stress the importance of the ICAO Assembly this year.”

A final position on the Commission’s proposals is expected to be discussed and voted in a plenary session of the full Parliament in early June.

EU SAF regulation

Meanwhile, Danish MEP Søren Gade, as the rapporteur responsible for the file, presented his draft report to the Parliament’s Transport and Tourism Committee (TRAN) on the Commission’s proposals (here and here) around introducing a blending mandate regulation to incentivise the uptake of sustainable aviation fuels in the EU as part of the EU’s strategy to decarbonise the air transport sector.

The Commission recognises the introduction of SAF will represent an additional fuel cost for airlines as they are currently more expensive to produce. “This is expected to exacerbate the pre-existing issues of a level playing field on the air transport market as regards aviation fuel, and to cause further distortions among aircraft operators and airports,” it says. “This regulation should take measures to prevent the introduction of sustainable aviation fuels negatively affecting the competitiveness of the aviation sector by defining harmonised requirements across the Union.”

In his report, Gade said the creation of a sound EU SAF market “will greatly depend on the credibility and sustainability of the final provisions that will be adopted under this regulation.”

Because competition for feedstocks between the energy and transport sectors will increase, he said it will be important to maintain the same European blending mandates across the EU. “This is to avoid a fragmentation of the SAF market, as well as a competition for feedstock that would lead to a severe shortage of supply in certain regions of the Union, undermining the ability of aircraft operators from those regions to decarbonise,” said the report. “Moreover, the rapporteur considers that it is of the utmost importance to preserve the integrity of the SAF and aviation internal markets, and in this respect the current blending mandate targets should be kept as they are because they reflect this limited availability of feedstock.”

The mandate proposed by the Commission starts from 1 January 2025 with a minimum share of 2% of SAF and with a 0.7% sub-mandate for synthetic fuels starting in 2030. Gade proposes the sub-mandate should be introduced from the beginning, with a minimum share of 0.03% of synthetic fuels.

Responding to concerns raised by the industry on the physical supply and uplift of the mandated SAF volumes at EU airports under the Commission proposal, Gade proposes a ‘flexibility mechanism’ for an eight-year period after the introduction of the mandate obligations. “This should act as a transitional period to provide for the necessary flexibility for fuel suppliers and airlines to meet their obligations of providing and uptaking sustainable aviation fuels in the most cost-effective manner, and to avoid imposing undue burdens on air transport operations at small airports. After the eight-year period, SAF will be available in the lion’s share of Union airports and be uplifted by the majority of aircraft operating from the Union.”

To further boost the uptake of SAF, he proposes that a part of the overall amount of EU ETS allowances, within the limit of the cap, should be allocated for free to aircraft operators for uplifting SAF. To avoid tankering, the proposed regulation requires all aircraft operators, both EU and from third countries, to annually uplift at least 90% of the aviation fuel required in those EU airports they depart from. For safety reasons, the rapporteur proposes an exemption from administrative fines if the operator proves non-compliance was caused by exceptional and unforeseen circumstances.

As aviation is an integrated and competitive international market, the rapporteur proposes text in the regulation that the EU sustains efforts at ICAO for an ambitious global system to incentivise the uptake of SAF and provides for an international level playing field.

In addition to SAF and synthetic fuels, Gade proposes that new technologies including hydrogen and electric, along with the appropriate airport infrastructure, should be included in the regulation to encourage and accelerate their development. He also proposes the introduction of an EU-wide labelling system, to be developed and implemented by the EU’s aviation regulatory agency EASA, to help consumers make more informed choices around the environment when choosing flights.

“A labelling scheme, with clear and comprehensive information, could provide the needed transparency in the market in order to drive consumers’ choices and further incentivise the use of sustainable aviation fuels and other sustainability measures by aircraft operators,” he says.

Lastly, the rapporteur proposes the setting up of a centrally-managed Sustainable Aviation Fund to provide the appropriate resources to stimulate innovation, research and investment in zero-emission technologies and sustainable infrastructure, with the revenues coming from fines collected under the regulation.

Photo: European Parliament

Two years after it was launched as a pilot by IATA and CBL Markets, part of Xpansiv CBL Holding Group (XCHG), the Aviation Carbon Exchange (ACE) has seen its first transaction via the IATA Clearing House (ICH), which makes it easier for airlines to purchase carbon credits using IATA’s financial back-end process. The new technical integration with the ICH functionality will make the need for financial settlements through a third party unnecessary and enable transactions to be seamless, risk-free and quicker, said IATA.  As a centralised marketplace, the ACE was launched in response to a requirement by airlines to purchase eligible units in compliance with the ICAO carbon offsetting scheme CORSIA. Although the Covid-19 pandemic has largely pushed back that need by a number of years, IATA and non-IATA airlines can trade on the exchange to purchase offsets for voluntary passenger offset programmes and net zero commitments. According to IATA, several airlines have already used the exchange, with JetBlue being the first to make a trade, but Qatar Airways is the first to use the new integration with the ICH.

“Since it was launched in November 2019, the ACE has provided airlines with a secure access to real-time carbon offset data, with full price transparency. We’ve now completed the technical integration of the ICH functionality with the ACE, which is a significant milestone to make financial carbon offset transactions seamless, safe and timely for years to come,” said Michael Schneider, Assistant Director Environment Programs, in an IATA blog.

With an annual turnover of around $56 billion and over 430 participants, the IATA Clearing House provides billing and settlement services in multiple currencies for the air transport industry. Open to IATA and non-IATA airlines, airline-associated companies and travel partners, it is a “netting” solution for the clearance of passenger, cargo, UATP (corporate travel) and non-transportation billings between them.

“All of our member airlines already have access into IATA’s financial back-end process and can simply use the existing connectivity to have their trades settled,” explained Schneider. “To give you an example, let’s say airline X makes a $30 million trade for offsets. In the absence of the ACE/ICH set-up, it usually requires the involvement of numerous people to complete a trade, from procurement to treasury to finance, resulting in a lengthy process that can take weeks. By then the carbon price will no longer be guaranteed and they face issues each time they trade, because the price cannot be locked in.

“Using the ICH, on the other hand, will reduce the time to two days, offering a secure and safe mechanism to the airline. Furthermore, on the seller side the ICH guarantees payment, again with a speedy two-day process, so it’s excellent news for all participants.”

He told GreenAir that total trading volumes on the exchange in 2021 were close to 5 million tonnes of “high-quality” credits, most but not all CORSIA-eligible units. He pointed out that many forestry and REDD+ projects can be of high quality but have not yet been approved under the review process by ICAO’s Technical Advisory Body, which assesses and recommends programmes and units for eligibility under CORSIA.

“These non-CORSIA credits can be appealing to an airline in the context of its voluntary passenger offset programme where it is looking for a specific geographical region and/or the project is linked to a number of UN Sustainable Development Goals, for example gender equality and improving health and living conditions,” said Schneider. “So the ACE makes an important contribution to climate finance, providing project developers the opportunity to list their credits issued on the exchange and to reach out directly to airlines, instead of selling through intermediaries.”

He added: “Airlines’ individual offset commitments, the use of credits for passenger offset programmes and also to furnish corporate customers with credits has driven most of the demand in 2021 and we expect to see the same in the near future.”

Commenting on Qatar Airways’ trade following the ACE/ICH integration, IATA Director General Willie Walsh said: “CORSIA is a key tool for helping the industry achieve carbon-neutral growth as part of our long-term target to reach net zero carbon emissions by 2050. The Aviation Carbon Exchange enables airlines to purchase their offsetting credits with maximum transparency and minimum bureaucracy. By performing the first-ever trade on the ACE using the IATA Clearing House, Qatar Airways has demonstrated its support for the ICH as a means of pioneering efficiency in transactions that will make the purchase of quality carbon offsets easier for all airlines.”

Responded Akbar Al Baker, Qatar Airways Group Chief Executive: “Qatar is one of the States that voluntarily participates in the pilot phase of CORSIA. As a leader in aviation, Qatar Airways is driven by an ambitious environmental sustainability vision and we are determined to support Qatar in this pursuit by remaining compliant with the global scheme. We welcome the use of the Aviation Carbon Exchange as it enables airlines to invest in CORSIA eligible emission reduction units, further supporting Qatar Airways’ commitment to invest in a low-carbon future, while reducing our financial risk.”

Photo: Qatar Airways

Editor’s note: GreenAir is a co-organiser of the international Aviation Carbon conference and we are delighted to announce that Xpansiv CBL will be the lead sponsor of our 10th anniversary event, Aviation Carbon 2022, which will be held, hopefully in-person, at the London Heathrow Marriott on October 17-19. More details will be posted shortly.

As the UK prepares to adopt ICAO’s CORSIA regulations into domestic law, the Department for Transport (DfT) has opened a consultation on its proposed approach for implementing and administering the monitoring, reporting and verification (MRV) of aviation CO2 emissions from this year. The consultation also considers policy options for interaction between CORSIA and with the UK leaving the EU ETS post-Brexit, a new UK Emissions Trading Scheme that also starts in 2021. The government’s preferred option is a ‘supply-adjusted’ hybrid scheme in which aeroplane operators would be entitled to claim a reduction in their UK ETS obligations equivalent to their CORSIA CO2 offsetting obligations on flights from the UK to EEA States covered by the EU ETS. In this option, for every tonne of CO2 that is removed from the UK ETS obligations of an operator due to CORSIA, a tonne of CO2 in UK ETS allowances would also be retired from the system. This would be more environmentally stringent than a simple hybrid approach and would be fully compliant with the CORSIA regulations, believes the DfT. The six-week consultation runs until February 28.

As a contracting state of ICAO, the UK is obliged to adopt into domestic law the relevant Standards and Recommended Practices (SARPs) relating to ICAO’s CORSIA carbon offsetting scheme for international aviation. The consultation considers CORSIA implementation in terms of MRV and offsetting by operators of their CO2 emissions. A second consultation is planned for this summer on detailed proposals for implementing CORSIA offsetting in the UK.

According to the DfT, implementing CORSIA alongside the UK ETS is being guided by two principles: upholding the UK’s international obligations by implementing CORSIA “as closely as possible” to the globally-agreed SARPs and upholding the UK’s domestic climate obligations to ensure carbon pricing is at least as ambitious as the EU ETS. It says it has taken into account that options could lead to operators having to both cancel CORSIA emissions units and surrender UK ETS allowances for the same tonne of CO2 emitted and the potential for competitive distortions between operators and an increased administrative burden. While accepting aviation has significant climate impacts in addition to CO2, the government says these are not yet well enough understood to form policy with any certainty. Operators are therefore not required to monitor, report or address these non-CO2 effects but the DfT says it is possible that either or both schemes may seek to incorporate these effects in the future.

CORSIA is expected to be implemented in the UK through two statutory instruments (SI) under an Air Navigation Order. The first SI, covering CORSIA MRV, is expected to be in force by spring 2021 and the second, covering CORSIA offsetting, is aimed to come into force by the first UK ETS surrender deadline in April 2022. A further instrument called the UK ETS Order, which includes provisions relating to the aviation free allocation, has already come into force but will be amended in future to reflect the chosen policy option for interaction between CORSIA and the UK ETS.

The first SI covers:

• The attribution of aeroplane operators to a state, the role of the state in implementing CORSIA and details the MRV processes and requirements;
• The MRV of CO2 emissions produced using CORSIA eligible fuels; and
• The enforcement action if operators do not comply with their obligations under the scheme.

The government intends that operators attributed to the UK for CORSIA will be regulated by the same four regulators (for England and the devolved administrations of Scotland, Wales and Northern Ireland) as under the UK ETS – for example the Environment Agency (EA) in respect of England. Operators who are attributed to the UK for CORSIA but are not participants in the UK ETS are proposed to be regulated by the EA. A single UK CORSIA focal point will report to ICAO on behalf of all the UK regulators, with the DfT remaining the responsible authority in the UK for CORSIA, in consultation with the Department for Business, Energy and Industrial Strategy (BEIS) and the devolved administrations.

Civil penalties for non-compliance can be issued by the regulator through an enforcement notice when it believes an aspect of CORSIA implementation has been or is likely to be implemented incorrectly, and will mirror those applying to the UK ETS. Failure by an operator to apply for or make a revised application for an emissions monitoring plan, or failure to monitor or report emissions carry a penalty of £20,000 ($27,000) plus a daily rate of £500 up to a maximum of £45,000. The penalties rise to £50,000 for more serious infringements.

CORSIA-UK ETS interaction

The consultation then considers the policy options for interaction between CORSIA and the UK ETS. In its introduction, the DfT says the UK is committed to fully participating in CORSIA from the start of the scheme in 2021 but at the same time recognises further action is required to ensure international aviation contributes to the global temperature goals of the Paris Agreement.

“The UK is therefore negotiating in ICAO for a long-term goal for international emissions that, like our national targets under the Climate Change Act, is consistent with the Paris Agreement,” it says. “The UK is also acutely aware of its responsibility as COP26 President to push for great ambition in tackling climate change across all sectors. The UK will use the platform of COP26 to push for progress in decarbonising all sectors including aviation. In addition, the UK government and the devolved administrations have higher climate change ambitions than those currently set by ICAO.”

Without policy action, the DfT says CO2 emissions above the CORSIA baseline from international flights departing from the UK to the European Economic Area (EEA) would incur obligations from both the UK ETS and CORSIA, leading to operators being charged twice for these emissions. It puts forward six options in the consultation for consideration. With the exception of one, they assume UK domestic flights will only be included in the UK ETS; international flights to or from the UK that are not covered by the UK ETS would only be included in CORSIA (where the other State is also a participant in the scheme); and flights from EEA States to the UK would be covered by the EU ETS.

Option 1: Simple hybrid scheme – An operator’s UK ETS obligations would be reduced by an amount equivalent to their CORSIA obligations on flights from the UK to the EEA. In effect, this would mean that the UK ETS would apply to emissions on these flights unless they are covered by CORSIA. The option does not allow an operator to directly use CORSIA emissions units against their UK ETS obligations. The option is broadly similar to the ETS-CORSIA ‘mix’ option in an inception impact assessment published by the European Commission. This is assessed by the DfT as the simplest method and means the UK is fully compliant with the CORSIA SARPs whilst ensuring operators face obligations either under CORSIA or the UK ETS on all emissions from UK to EEA flights. However, this option would see the demand for allowances reduced without an equivalent adjustment to the supply, which could contribute to a build-up of surplus UK ETS allowances, plus add a level of complexity for operators on UK to EEA flights.

Option 2: Supply-adjusted hybrid scheme – Based on option 1, operators would be entitled to claim a reduction in their UK ETS obligations equivalent to their CORSIA obligations on flights from the UK to EEA States. Additionally, to maintain the supply-demand balance – and therefore the UK ETS auction price – the UK ETS cap would also be adjusted to account for those emissions covered by CORSIA. For every tonne of CO2 that is removed from the UK ETS obligations of an operator due to CORSIA, a tonne of CO2 in UK ETS allowances would also be retired from the system. Allowances could be taken from the overall UK ETS cap or from allowances allocated to the aviation sector. This option would be more environmentally stringent than the simple hybrid as it would go further towards maintaining the integrity of the UK ETS cap and also help to maintain the supply/demand balance of the UK ETS. It would also be fully compliant with the SARPs. Despite being likely to be the most complicated to administer, it is the government’s initial preferred option.

Option 3:  Restricted hybrid scheme – Operators would be allowed to use CORSIA emissions units against their UK ETS obligations but only if those units meet additional criteria to minimise the risk of not representing additional verifiable emissions reductions or that they have been double-counted. This could be capped at a level equal to the CORSIA obligations on UK ETS international routes. Without this safeguard, this option could lead to cheaper CORSIA units being used in place of UK ETS allowances, leading to oversupply and a significantly reduced price, and would also mean the UK developing its own emissions unit criteria.

Option 4: UK ETS and CORSIA implemented independently – Operators with international flights in the UK ETS would be required to comply with both schemes for emissions above the CORSIA baseline and therefore have overlapping obligations on these flights. This would be the most environmentally ambitious option but would mean operators having to pay twice for the same tonne of CO2. The option would be less administratively complex than a hybrid scheme as the two schemes would run largely separately.

Option 5: Domestic offsetting scheme – CORSIA would still be applied to international flights but instead of operators being covered by the UK ETS, an offsetting scheme based on the design of CORSIA would be applied to the flights that would have been in the scope of the UK ETS. The scheme could use CORSIA MRV, thresholds, exemptions and compliance periods, as well use offset credits rather than allowances for all emissions. As a UK policy, the scheme could have a more stringent baseline than CORSIA for international flights, include UK domestic flights and apply its own emissions unit criteria for emissions not covered by CORSIA. Because this option would replace the UK ETS, it would require some time to deliver, says the DfT, but could be introduced by the start of the CORSIA first phase in 2024. The option would be fully compliant with the SARPs and as it uses offset credits rather than ETS allowances, it would provide the highest demand for domestic and potentially international emissions reduction programmes, which the DfT says would be consistent with the government’s carbon finance ambitions. Against the option, the price of offsets is likely to be below the price of allowances for some years and because all emissions obligations would be met through offsetting rather than allowances, there could be a significantly reduced incentive to reduce in-sector aviation emissions.

Option 6: UK ETS only – Only the UK ETS would apply on UK to EEA flights, whilst CORSIA would apply to all other international flights in the scope of the scheme. As UK to EEA flights would not be subject to CORSIA obligations, the UK would need to file a difference against the definition of international flights in the SARPs. The option would ensure the same level of ambition as now on UK to EEA flights, without charging for the same emissions. It is broadly similar to the ETS-CORSIA ‘clean-cut’ option in the Commission’s inception impact assessment.

Following this consultation, a second consultation on a more detailed preferred CORSIA-UK ETS interaction policy will be published this summer.

Photo: Heathrow Airport

ICAO’s governing Council has adopted decisions on eligible carbon emissions units and sustainability certification schemes for eligible fuels that the UN agency says are the final building blocks for the CORSIA carbon offsetting mechanism for international aviation, which formally starts next month. At its 221st session, the Council accepted recommendations from its Technical Advisory Body (TAB) on a second set of eligible emissions units (EEUs) for use with offsetting requirements in the initial 2021-2023 pilot phase of CORSIA. This includes the approval of the Architecture for REDD+ Transactions (ART) to supply airlines with national and subnational (jurisdictional) forestry protection carbon credits. ART was the only new second-round applicant to be recommended for immediate eligibility to supply CORSIA EEUs. RSB and ISCC have been approved as sustainability certification schemes for CORSIA eligible fuels.

Commenting on the outcome of the session, Council President Salvatore Sciacchitano said: “ICAO set out a vision for carbon-neutral growth in international aviation and we have now seen that vision bear fruit. The Council’s decisions on eligible emissions units and sustainability certification schemes are the final steps necessary for CORSIA’s timely implementation.”

The approval of EEUs applies for use with offsetting requirements in the pilot phase and are subject to their respective scope of eligibility and eligibility dates. Issued units must be in respect of activities that started their first crediting period from 1 January 2016 and in respect of emissions reductions through 31 December 2020. It requires TAB recommendation and Council approval for an extension to the eligibility timeframes beyond the pilot phase.

TAB has now recommended and the Council approved seven emissions units programmes for eligibility across the two assessment cycles: American Carbon Registry (ACR), Architecture for REDD+ Transactions (ART), China GHG Voluntary Emission Reduction Program, the UN’s Clean Development Mechanism (CDM), Climate Action Reserve (CAR), Gold Standard and Verified Carbon Standard (Verra).

The approval by ICAO of Winrock’s ART and Verra’s Jurisdictional Nested REDD+ (JNR) represents the first acceptance of REDD+ (Reducing Emissions from Deforestation and forest Degradation) standards in a compliance market and is an important moment in the development of REDD+, said the International Emissions Trading Association (IETA).

A paper published by IETA calls for increased investment to prevent deforestation and for carbon markets to channel finance to all pathways that protect, restore and enhance the ecosystems that draw down and store carbon from the atmosphere.

“We need to scale up finance to avoid deforestation – especially tropical deforestation – in a way that contributes to sustainable development goals in forested regions,” said IETA CEO Dirk Forrister.

The paper points out that many countries have included REDD+ activities as part of their Nationally Determined Contributions (NDCs) to the Paris Agreement and that scenario modelling indicates dramatic reductions in deforestation are necessary to help achieve the Paris Agreement’s 1.5C temperature goal.

“Reducing deforestation and the conversion of natural habitats must be prioritised and recognised for its significant climate change mitigation potential in the short-to-medium term,” said Ellen Lourie, Senior Policy Associate at IETA. “If forests are allowed to be destroyed, it won’t be possible to recapture and store the lost carbon in new forests quickly enough to meet the Paris goals.”

Natural Climate Solutions (NCS) is becoming an increasingly large component of the voluntary market, says IETA, and in 2019 forestry and land use represented over 50% of the market by value. The private sector-led Taskforce on Scaling Voluntary Carbon Markets is looking to increase the voluntary market by at least 15-fold by 2030, which, says IETA, represents an opportunity to direct significant new finance into forest protection.

Commenting on the ICAO outcome, Frances Seymour, Chair of the ART board, said: “We applaud the ICAO Council’s decision to approve jurisdictional REDD+ credits from ART. Protecting and restoring tropical forests can contribute up to one-third of the climate results the world needs over the next two decades, representing a massive mitigation opportunity that needs access to private sector capital at scale. ART was designed as a Paris Agreement-aligned, fit-for-purpose crediting programme that provides the assurance of integrity and safeguards that markets need.”

ART, which uses The REDD+ Environmental Excellency Standard (TREES), said its crediting ensures that jurisdictions meet standard market requirements for robust accounting, independent third-party verification and issuance of serialised units on a transparent registry. Despite the impact of the Covid pandemic and the subsequent adjustment to the CORSIA baseline that would delay the need for the airline industry to purchase offsets for compliance with the scheme, the ICAO approval had been interpreted as a ‘seal of quality’ by market participants, said ART. It stated that since the first crediting programmes were approved in March 2020, interest in purchasing CORSIA-eligible credits was increasing from outside the airline industry as a way to ensure they were investing in credible emission reductions.

“ART was established in anticipation of catalytic private sector interest in REDD+, especially in industries with hard-to-abate emissions,” said Mary Grady, Director of the ART Secretariat. “We hope ICAO’s approval provides the needed quality imprimatur for voluntary investments in REDD+ that extends beyond the global aviation sector.”

Mario Boccucci, Head of the UN-REDD Programme Secretariat, commended ICAO’s approval of jurisdictional and national REDD+ crediting programmes, adding: “The UN-REDD Programme is ready to continue to support REDD countries ensure high-quality and environmental integrity, and provide technical assistance to meet NDCs and raise ambition.”

NGO Environmental Defense Fund (EDF) has helped to establish the Emergent Forest Finance Accelerator, a non-profit finance intermediary supported by the Rockefeller Foundation and the Norwegian government’s International Climate and Forest Initiative, to facilitate large-scale REDD+ transactions using the ART framework. It is collaborating with ART, Emergent, the UN REDD Programme and Forest Trends on the ‘Green Gigaton Challenge: Bringing REDD+ to Scale’ that seeks to set a demand signal that can scale up to at least a billion tons per year in emissions reductions transacted from high-integrity jurisdictional REDD+ by 2025.

“ICAO’s decision connects limits on aviation carbon pollution with investments in tropical forest protection and restoration, and is a win for nature, countries, companies and communities,” said Ruben Lubowski, Associate VP for Climate and Forests and Chief Natural Resource Economist at EDF. “After more than a decade of work on REDD+ frameworks under the UNFCCC and other fora, this marks the first time that REDD+ credits have been approved for use within a global compliance carbon market system.

“ICAO’s decision to include large, jurisdictional-scale REDD+ programmes in CORSIA sends a critical signal to companies and policymakers about the value of tropical forest protection to meet climate goals. It shows forest countries that there is a tangible demand for emissions reductions of the highest environmental and social integrity. Approval of these programmes will drive progress in reducing emissions at the scale needed to achieve the climate goals set by the aviation industry and in the Paris Agreement.”

The focus of the TAB and ICAO Council on ensuring programmes obtain from host countries written attestations that they will properly account for the transferred reductions should add to the efforts of Parties in ongoing climate talks to finalise clear guidance to ensure environmental integrity and prevent double-counting of emission reductions, said EDF. The NGO has produced analysis to show global climate cooperation through carbon markets can enable double the emissions reductions under current Paris pledges for the same cost as countries acting alone.

At its November meeting, the ICAO Council also approved two Sustainability Certification Schemes, the Roundtable on Sustainable Biomaterials (RSB) and the International Sustainability and Carbon Certification (ISCC), as eligible to certify CORSIA Eligible Fuels, based on recommendations by ICAO’s Committee on Aviation Environmental Protection (CAEP). The use of such fuels enables aeroplane operators to reduce their CORSIA offsetting requirements from the use of low-carbon and sustainable aviation fuels (SAF) that must be certified by one of the two organisations, although there is a degree of mutual recognition between them. Such fuels must meet the CORSIA Sustainability Criteria, including to achieve net GHG emission reductions of at least 10% compared to the baseline lifecycle emission values for conventional aviation fuel and not be made from biomass obtained from land with high carbon stock.

RSB has developed its own CORSIA Standard which it said goes above and beyond the ICAO scheme’s requirements to ensure that SAF achieves at least 50% GHG reductions on its core lifecycle analysis and a minimum 10% when including CORSIA’s Induced Land Use Change values (ILUC). In addition, it adds, RSB-certified SAF enables further claims around zero deforestation, environmental protection, food security and human rights, as specified in the RSB Principles and Criteria.

RSB is supported and endorsed by many in the aviation industry and also by environmental NGO coalition group ICSA. Airline members of the Sustainable Aviation Fuel Users Group (SAFUG), representing around a third of global commercial aviation fuel consumption, have committed to developing and using fuels consistent with RSB’s sustainability requirements. A third of RSB’s members are from the aviation sector. RSB certificate holders include Gevo, Nuseed, SkyNRG and World Energy, with further commitments to RSB certification from Velocys, LanzaTech and LanzaJet. KLM has committed to sourcing RSB-certified SAF.

Renewable jet producer Neste is also supporting RSB certification standards. “We cordially congratulate RSB for receiving ICAO recognition for its standard and we look forward to continuing the close collaboration,” said the Finnish company’s VP Business Development, Renewable Aviation, Sami Jauhiainen.

“A clear pathway is now available for industry leaders to demonstrate their commitment to sustainability goes above and beyond the legal requirements of CORSIA to also include a full range of social and environmental impacts as well,” commented Rolf Hogan, RSB’s Executive Director, on the ICAO approval. “We look forward to working with these pioneers to implement this new RSB CORSIA Standard to help transform the industry, and the world.”

Added Pedro Piris-Cabezas, Director of Sustainable International Transport and Lead Senior Economist at EDF: “ICAO Council’s approval of RSB is both an outstanding achievement for RSB and a major milestone for CORSIA, which completes CORSIA’s SAF framework. RSB’s CORSIA standard also represents a paradigm shift, moving from RSB’s original focus on sustainable biofuel volumes to a new focus on emissions reductions from the use of SAF for carbon markets.”

ISCC has also expanded the sustainability requirements for CORSIA eligible fuels with additional criteria that aims to protect water, soil, air, biodiversity and workers’ and land rights. “ISCC covers the complete set of CORSIA requirements, allowing economic operators at every point in a fuel’s supply chain to show their compliance with the CORSIA scheme by becoming ISCC CORSIA certified,” said the Germany-based certification body.

Commenting on the Council outcome on eligible units and sustainability certification schemes, ICAO Secretary General Dr Fang Liu said: “The steps that ICAO has taken to address climate change go hand-in-hand with our efforts to promote the sustainable growth and long-term prosperity of international aviation. CORSIA’s implementation elements are ready, and States and airlines are ready to make us of them.”

ICAO has launched a series of videos on ‘Navigating CORSIA’, which are guides to the scheme’s design and implementation.