A lack of direction from governments worldwide, specifically in relation to the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), has left potential buyers in the Voluntary Carbon Market (VCM) in the dark, with many choosing instead the route of doing nothing – avoiding any potential complications or mis-purchases. However, the good news for buyers looking to invest in the VCM is that both the communication and regulatory landscape around carbon markets are improving, writes Tatiana Feuerhahn. We are seeing market proponents pushing for greater guidance in the VCM regarding what constitutes a “high quality” carbon credit, with the recent development by the Integrity Council for the Voluntary Carbon Market (ICVCM) of the Core Carbon Principles (CCPs) being a perfect example. We have also officially entered Phase I of CORSIA in 2024, with the aviation industry expecting greater guidance from the International Civil Aviation Organization (ICAO) in the latter half of the year regarding eligible emissions units (EEUs).

As a result, there is growing confidence among buyers. This increased clarity should boost demand and, as the price of carbon rises, make more projects financially viable. These initiatives coupled with the recent announcement by The White House, which has set out plans to develop robust standards for buyers and sellers of carbon credits in the VCM to help tackle ‘greenwashing’ and unlock green investment, will all help boost market sentiment and ensure that carbon markets can effectively support ambitious and credible climate action.

Aviation stands as a unique leader, being the only industry among the hard-to-abate sectors – such as steel, chemicals and cement, where it’s more difficult to lower greenhouse gas emissions – committed to achieving net-zero carbon emissions by 2050. This ambitious goal is accompanied by significant compliance obligations. ICAO requires airlines to mitigate most of the growth in their emissions beyond a 2019 baseline with eligible carbon credits. This requirement, a key facet of CORSIA, will become mandatory for all international operators, with a few exemptions, from 2027, following the current voluntary adoption phase.

Despite the sector’s strides towards reducing emissions through sustainable aviation fuel (SAF) and operational efficiencies, the current availability of SAF falls dramatically short of what is needed to power global commercial airlines, even for a single day. For instance, the recent deal by Emirates delivering 300,000 gallons of blended SAF from Shell Aviation to Dubai marks progress, but the lack of scaled availability is evident for today’s emissions. Moreover, the current regulations cap the maximum blend of SAF with conventional jet fuel at 50%, and most airlines use far lower proportions due to cost and supply constraints.

Carbon credit challenges

In order for the airline industry to meet its net-zero aspirations and current capabilities it must explore comprehensive strategies, including carbon offsetting, to bridge the gap. Currently, the demand for CORSIA-eligible products is expected to significantly outstrip supply by the end of the decade. Analysis by Abatable forecasts that demand could be between seven and fourteen times greater than supply, depending on the actions airlines take to cut emissions, as well as the development of eligible carbon registries and projects. This anticipated shortage underscores the urgency for airlines to improve their operational efficiencies and invest in new technologies. Yet, with major advancements like large-scale hydrogen storage and electric passenger planes still years away from being commercially viable, carbon credits remain a critical tool in the journey to net zero.

They provide a viable interim solution while technological advancements and increased SAF production capacities are developed. But navigating the environmental commodities market can be complex and challenging, particularly with the intricacies of CORSIA eligibility and the broader carbon market.

By working with a carbon market trading and advisory desk that is dedicated to assisting the aviation industry in its transition to a sustainable future, the industry can overcome the hurdles of decarbonisation and achieve its net-zero emissions goals. It can access expert advice on how to approach and manage emissions reduction efforts effectively, facilitate the acquisition and management of carbon credits, renewable energy certificates (RECs) and SAF credits, ensuring compliance and progress toward sustainability goals.

If the aviation industry leverages the existing expertise in carbon markets and sustainability, they can streamline emissions reduction efforts and meet the ambitious net-zero goals, contributing to a more sustainable future.

The aviation industry’s commitment to net-zero emissions by 2050 is a bold and necessary step towards combating climate change. However, the journey is fraught with challenges, particularly in the realm of carbon credits and sustainable fuel supply. The VCM will be instrumental in transitioning the aviation sector towards environmental sustainability.

About the author

Tatiana Feuerhahn
Valitera offers strategic advisory, principal trading, and portfolio management services to help clients navigate the complex environmental commodities landscape and seize market opportunities. Specialising in sourcing and trading carbon credits, renewable energy certificates (RECs), and sustainable aviation fuel (SAF). Formerly with Delta Air Lines, Tatiana is responsible for Valitera’s aviation advisory practice and has extensive experience in managing carbon credits and navigating CORSIA regulations. Her expertise helps Valitera’s airline clients to meet their environmental obligations and achieve net-zero targets. She can be contacted at tatiana@valitera.com.

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Top photo (Government of Guyana): In February, Guyana announced the world’s first credits eligible for use by airlines in the first phase of CORSIA

Views expressed in Commentary op-ed articles do not necessarily represent those of GreenAir.

Business aviation sustainability solutions provider Azzera has been selected to provide CORSIA-compliant carbon credits for Pratt & Whitney Canada’s (P&WC) Carbon Offset Service, which is available to operators of all aircraft powered by the manufacturer’s engines, including business jets, helicopters and regional and general aviation aircraft. Under the arrangement, Azzera says it will supply a portfolio of high-quality carbon credits rated through the company’s Impact Score, a quality assurance system based on official project registries such as Verra, Gold Standard and American Carbon Registry, and a proprietary rating system. Azzera has also added what it claims is an industry-first sustainable aviation fuel management module to its CELESTE software platform that enables aircraft operators to manage and track their SAF uplift and assess its contribution to emissions reduction. Both SAF uplift and book-and-claim are trackable through the functionality.

P&WC’s Carbon Offset Service is a flexible add-on to its Eagle Service Plan or Fleet Management Program engine maintenance agreements and aims to offer customers a straightforward way to offset the carbon footprint caused by the use of their aircraft.

Azzera says its Impact Score addresses concerns about the voluntary carbon markets regarding the validity and impact of carbon credits, “offering a tangible and auditable metric that mitigates the risk of greenwashing.”

Explained Puja Mahajan, the company’s CEO and co-founder: “The Azzera Impact Score ensures that the carbon credits provided are both high-quality and have verified and significant environmental impact. Working with customers such as Pratt & Whitney Canada, we are making it easier for aircraft operators to not only offset their emissions but also to understand and quantify the positive environmental impact of their contributions.”

Responded Irene Makris, VP Customer Service, Pratt & Whitney Canada: “We are committed to providing our customers a seamless way of offsetting aviation carbon emissions. Through our arrangement with Azzera, we provide our customers with a means to compensate for their aviation emissions and help them ensure the quality of their sustainability investment. We are focusing exclusively on CORSIA-eligible credits, adding an additional layer of due diligence to our Carbon Offset Service.”

Since its inception in May 2022, Azzera says it has facilitated the compensation of over 55,000 tonnes of carbon credits directly or indirectly through its advisory role, tracked 97,300 flights and measured more than 1.2 million tonnes of emissions, representing 6% of business aviation’s total carbon footprint.

The new SAF module aims to boost CELESTE’s emissions data collection and reporting capability, says the company. The digital platform integrates with flight scheduling software to access and process data for real-time emissions calculations. To simplify the calculations, emissions are segregated by carbon compliance market, including CORSIA and emissions trading systems such as the EU ETS, UK ETS and CH ETS. Beyond segregating emissions, the SAF module also allocates SAF uptake to specific missions, better preparing operators for the forthcoming ReFuelEU aviation mandates, which from 2025 requires all aviation fuel provided at EU airports to contain a minimum fraction of SAF.

“The European business aviation fleet makes up about 15% of the world’s total and the vast majority of Europe’s operators are counting emissions – the mandates are driving this – and increasingly operators worldwide are voluntarily monitoring emissions too,” said Mahajan.

With the SAF data stored in a single module, CELESTE users can optimise the system to increase visibility around their use of SAF as the module tracks where the SAF is purchased, how much is uplifted and which routes were flown. In addition, the system also facilitates SAF book-and-claim transactions for business aviation clients, aggregates SAF demand and provides SAF certificates directly to the operator on its platform interface.

Photo: Pratt & Whitney Canada’s PW800 powers the Gulfstream G500 business jet

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Southwest Airlines has agreed to purchase over 400,000 carbon credits from SMBC Aviation Capital, the world’s second largest aircraft leasing company, to support the airline’s employee business and charitable travel, or to meet CORSIA requirements. As the first aircraft lessor to develop a carbon credit programme, SMBC Aviation Capital announced in September 2022 an initial investment of $53.3 million in projects that align with up to 10 of the 17 UN Sustainable Development Goals (SDGs), including good health and well-being, gender equality and climate action. Part of the investment will also support local community initiatives such as irrigation schemes and micro finance opportunities for women. Carbon credits can be obtained from the Ireland-based lessor by airlines either as part of an aircraft lease contract or independently. It has placed 12 Boeing 737-8 MAX aircraft with Southwest and is also collaborating with partners on scaling up sustainable aviation fuel production.

“Southwest continues to make sustainability a priority and we are delighted to partner with them as the first customer of our newly-established carbon credit programme,” commented David Swan, Chief Operations & Sustainability Officer at SMBC Aviation Capital. “This announcement supports our objective of working with our airline customers to accelerate their path to environmental sustainability. We believe that by taking tangible actions and working together we can make a positive change, especially in a hard-to-abate sector like aviation.”

Through Belgium-based CO2 Logic, SMBC Aviation Capital has invested in a project in Burkina Faso, West Africa, that will provide energy-efficient cookstoves to 28,000 families who have previously relied on traditional cooking methods that are harmful to health and the environment. According to the Clean Cooking Alliance, the use of open fires and solid fuels for cooking causes nearly 4 million premature deaths each year and, according to the US Environmental Protection Agency, the average open fire produces nearly as much CO2 as the average motor vehicle.

Separately, the lessor is working with US carbon project developer C-Quest Capital to forward purchase carbon credits from a range of cookstove projects across Africa, Asia and Central America, which aim to reach over 3.2 million households and meet a minimum of seven SDGs.

Due diligence across all projects has been independently undertaken by Climate Focus, which is based in the Netherlands.

Under the agreement with Southwest, the airline will be acquiring over a five-year timeframe carbon credits certified by either Gold Standard or Verra from SMBC Aviation Capital’s funded projects in Africa and Central America.

“We recognise the important roles that both in-sector and out-of-sector levers play in our sustainability journey,” said Chris Monroe, SVP Finance Treasury & Sustainability, Southwest Airlines. “Expanding our existing partnership with SMBC Aviation Capital supports these projects that are expected to help mitigate carbon while contributing positively to local communities.”

In October 2021, Southwest laid out a 10-year plan to maintain carbon neutrality to 2019 levels, which included the first US-based carbon offset initiative that offered customers loyalty points, and for every dollar contributed towards offsetting Southwest’s carbon emissions, the airline would match the contribution.

The plan also incorporated a target to reduce carbon emissions per available seat mile (including scope 1 and scope 2 emissions) by at least 20% by 2030 through fleet modernisation, route optimisation and other initiatives. The airline also plans to replace 10% of its total jet fuel consumption with sustainable aviation fuel by 2030.

Towards the end of 2021, Southwest signed a 15-year offtake agreement with Velocys Renewables for 219 million gallons of SAF, with deliveries commencing as early as 2026 from the Velocys Bayou Fuels facility in Natchez, Mississippi. The airline estimates the fuel could avoid 6.5 million tonnes of CO2 over the term of the agreement.

In June last year, Southwest announced an investment in SAFFiRE Renewables, a company formed by D3MAX, which in 2021 was awarded a grant by the US Department of Energy towards a pilot-scale facility. The grant is being matched by Southwest and the SAFFiRE project is expected to utilise technology developed by the DOE’s National Renewable Energy Laboratory to convert corn stover, a widely available waste feedstock in the US, into renewable ethanol that then would be upgraded into SAF. The investment and grant supports phase one of the project, which is expected to include technology validation, preliminary design and a business plan for a pilot plant.

“This is a unique opportunity to invest in what we believe could be game-changing technology that could facilitate the replacement of up to approximately 5% of our jet fuel with SAF by2030, with the potential to significantly continue to scale beyond the decade,” commented Southwest CEO Bob Jordan at the time of the announcement. “This first-of-its-kind investment is another step we are taking to address our environmental impact and it also supports our efforts to partner with organisations and government entities to help our industry reach the goal of carbon neutrality by 2050.”

SMBC Aviation Capital has an owned, managed and committed fleet of over 900 aircraft and is working to a target of up to 80% of new technology aircraft in its fleet by the end of 2025. It is working with shareholder Sumitomo Corporation to explore ways to increase the supply of SAF and is also collaborating with Aircraft Leasing Ireland on starting production of SAF in Ireland. It has developed its own framework to achieve net zero in its own operations by 2050 and has offset all of its operational emissions since 2019. Scope 3 emissions are determined by Fexco Group company PACE.

Image (Boeing): Southwest Airlines Boeing 737 MAX

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Following a Scandinavian test run last year, the Lufthansa Group has launched its ‘Green Fares’ offering by all its six airlines on more than 730,000 flights per year within Europe and North African destinations Morocco, Algeria and Tunisia. Under its “more climate-friendly pledge”, the fares have already built in the extra cost of offsetting all flight-related CO2 emissions, with 20% of the contribution being used to purchase sustainable aviation fuel and the remainder in “high quality” climate protection offsets. The Green Fares can be booked “with just one click” via the airlines’ websites as well as the NDC platform in Economy and Business classes. The Group has also signed an MoU with VARO Energy on the production and supply SAF, deliveries of which could possibly start as early as from 2026. It also revealed more than 20 Boeing 777-300ER long-haul aircraft will be equipped with film modelled on the microscopic structure of shark skin that collectively will reduce the Group’s CO2 footprint by over 25,000 tonnes annually.

“People don’t just want to fly and discover the world – they also want to protect it at the same time,” commented Christina Foerster, responsible for brand and sustainability on Lufthansa Group’s Executive Board. “We already offer the most comprehensive portfolio for more sustainable travel and are now expanding this further with the Green Fares.”

The Green Fares offer, available on flights by Lufthansa, Austrian Airlines, Brussels Airlines, SWISS, Edelweiss, Eurowings Discover and Air Dolomiti, is also available to corporate customers, who will receive a CO2 mitigation certificate for the CO2 reduction achieved through the use of SAF.

A random midweek Lufthansa flight in March from Munich to London is quoted at €140 ($150) for a one-way Economy Classic ticket. The cost of the Economy Green fare for the same flight is €165, and has the added benefit of free rebooking, worth €35, and additional 20% status miles and 20% award miles. On the same flight, the Business Green fare in business class carries a €60 premium over Business Saver.

“The Green Fares were already successfully tested last year for flights from Denmark, Sweden and Norway. This showed that the demand for more sustainable travel offers is increasing,” said Harry Hohmeister, who has responsibility for global markets and network on the Lufthansa Group Executive Board. “We are pioneering the industry and living up to our ambition to develop innovative solutions for aviation of the future and we are making it even easier for our customers to book more sustainable offers.”

Under the MoU between Lufthansa and Swiss-based VARO Energy, which they say builds on their existing relationship, the two companies will explore SAF production and supply, and also jointly investigate the use of biogenic feedstock, such as sewage sludge, to produce green hydrogen that can potentially be used at a later stage for e-kerosene.

VARO says decarbonising the aviation industry is a core element of its strategy and is targeting production of more than 260,000 tonnes of SAF per year by 2026, with a long-term target of more than 500,000 tonnes per year.

“Our ONE VARO Transformation strategy is centred on meeting the needs of our customers to decarbonise as they progress in the energy transition while ensuring reliability of supply,” commented Dev Sanyal, CEO of VARO Energy. The company has a majority share in the Bayernoil refinery in southern Germany and a 51% stake in nature-based carbon dioxide removals company SilviCarbon.

The AeroSHARK bionic film developed by Lufthansa Technik and BASF is applied to the aircraft’s outer skin and after a testing and certification process lasting several months, EU safety agency EASA has granted Lufthansa Technik a Supplemental Type Certificate for the series application of the technology on two Boeing 777s. The first SWISS aircraft equipped with AeroSHARK has already been in scheduled service since October as part of the flight test certification programme. Over time, all 12 B777-300ER aircraft will fly with the fuel-saving surface technology, as well as Lufthansa Cargo’s fleet of 11 Boeing 777F freighters.

AeroSHARK consists of millions of ribs around 50 micrometres in size, known as riblets, that imitate the properties of sharkskin and thus optimise the aerodynamics at flow-relevant points, such as the fuselage or the engine nacelles. By covering 950 square metres of a 777-300ER’s outer skin, Lufthansa estimates annual savings of around 400 tonnes of jet fuel and more than 1,200 tonnes of CO2 can be achieved.

“Our ambitious goal is a neutral CO2 balance by 2050 and by 2030 we want to halve our net CO2 emissions compared to 2019,” said Foerster. “With the broad rollout of the AeroSHARK surface technology, we are once again underlining our innovation leadership. We are the first airline group worldwide to use this new technology.”

Photo: Lufthansa Technik

Christopher Surgenor

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Following the recent launch of British Airways’ CO₂llaborate online platform that enables customers to address the carbon footprint of their flights through the purchase of carbon offsets and/or sustainable aviation fuel, a new third option has been provided in the form of carbon removals. Whereas traditional carbon offsets are created when a project avoids, reduces or removes additional CO2 emissions from the atmosphere, carbon removal credits are issued by nature, biomass or technology based projects that remove CO2 from the atmosphere or from the carbon cycle. The platform offers customers a choice of a combination of carbon offsetting and SAF or carbon removals and SAF, with a slider for each option to select the preferred amount of SAF. Two independently certified carbon removal projects are being supported, one restoring a mangrove forest in the Indus Delta area of Pakistan and the other a biochar project in Oregon, USA. More projects are expected to be added over time, said the airline.

Carbon dioxide removal (CDR), also known as negative CO2 emissions, is a process in which CO2 is removed from the atmosphere and sequestered for long periods of time. The carbon removal sector is still comparatively young, but is increasingly being seen by scientists, governments and the UN Intergovernmental Panel on Climate Change (IPCC) as essential to address climate impacts. The IPCC’s Sixth Assessment Report said the deployment of CDR to counterbalance hard-to-abate residual emissions from sectors like transportation is unavoidable if net zero CO2 or GHG emissions are to be achieved. By the end of the century, carbon removal will be expected to help achieve net-negative emissions and bring temperatures back down from their peak.

CDR encompasses a wide array of approaches, including direct air capture (DAC) coupled to durable storage, soil carbon sequestration, biomass carbon removal and storage, enhanced mineralisation, ocean-based CDR and afforestation and reforestation.

As part of its commitment to achieving net zero emissions by 2050 “or sooner”, with its parent company International Airlines Group (IAG), British Airways says it is supporting research and innovation to help accelerate the development of CDR solutions. “The airline is considering projects that are immediately available and independently verified today, as well as more innovative technology solutions,” it said.

Coastal blue carbon ecosystems are some of the most threatened ecosystems on the planet, with an estimated 340,000 to 980,000 hectares being destroyed each year. The nature-based Delta Blue Carbon mangrove forest restoration project claims to be the biggest of its kind in the world, being implemented over an area of 350,000 hectares in total – an area the size of Luxembourg – with reforestation and revegetation comprising 226,000 hectares. In recent decades the mangroves were devastated by large-scale deforestation and used as fuel and fodder, with further damage caused by open-range livestock grazing.

In just six years, tens of millions of mangrove seedlings have been re-planted, restoring more than 73,000 hectares of degraded mangrove forests and tidal wetlands. Over the next 60 years, the wetlands are expected to sequester an estimated 142 million tonnes of CO2e. Studies have found that mangrove forests can hold up to four times more carbon than other tropical rainforests.

The project is one of the first to use Verra’s Blue Carbon tidal wetland methodology, which accounts for the effects of sea level rise over the project’s lifetime. It is certified by VCS (Verified Carbon Standard) and CCB (Climate, Community & Biodiversity Standards).

The Delta Blue Carbon mangrove forest project

In the second project, timber company Freres Lumber’s biomass power production plant produces biochar, a carbon-rich charcoal-like material that is created when agricultural and wood waste is used as fuel. The process locks carbon into the solid material and prevents it from naturally decaying and keeping it out of the atmosphere for hundreds of years. Carbon that is stored in the biochar was originally harvested from the atmosphere through photosynthesis of the tree.

Last year, Freres joined international online marketplace Puro.earth, which helps companies reduce or eliminate their carbon footprints. The vehicle used to measure and report the amount of sequestered carbon is called a CO2 Removal Certificate, or a CORC, and buyers retire CORCs in the Puro registry to support their sustainability or net zero claims. Puro certifies suppliers based on the Puro Standard, with removals independently verified by a third party. The Puro Standard is the first carbon removal standard for engineered carbon removal methods in the voluntary carbon market, with carbon removal methodologies aligned with the IPCC definition for carbon removal. Each CORC represents a volume of one tonne of CO2 removal and the Puro website quotes a price of €110 per Freres Biochar CORC.

The cost of choosing carbon removal on BA’s CO₂llaborate platform – a partnership with climate tech company Chooose – is therefore more expensive than the carbon offsetting option. As an example, a round-trip journey in economy class between London and New York results in CO2e emissions of just under 700kgs per passenger. The adjustable slider defaults to a preferred 10% use of SAF against a 90% use of carbon offsetting, or 90% carbon removals if this option is chosen. The former choice would carry a price of £20.17 ($24), the latter more than double at £44.91. Choosing carbon offsetting entirely would cost £7.66 compared to £33.35 if opting for 100% carbon removal. Customer contributions to the SAF option are supporting the purchase of renewable fuel through BA’s partnership with Phillips 66, which is added to the existing fuel pipeline at Heathrow Airport.

The airline is already offsetting the carbon emissions of all its flights within the UK. For flights within Europe, the emissions calculation is adjusted to reflect British Airways’ participation in regulatory emissions trading systems such as the EU ETS and UK ETS so that emissions are not double counted.

“In 2019, when we committed to achieving net zero emissions by 2050, we identified that a vital way to meet this goal would be by using carbon removals and we currently expect that these could contribute up to a third of our total action,” commented Carrie Harris, Director of Sustainability at British Airways. “While we continue to drive action to reduce our emissions now, including by improving operational efficiency, investing in more fuel-efficient aircraft and scaling up the availability of sustainable aviation fuel, we’re excited to be supporting research and innovation to accelerate the scale-up of carbon removal solutions.

“By choosing carbon removal projects as part of their action to address the emissions associated with flying, our customers are not only joining us on our journey to a more sustainable future, but also helping accelerate the development of the vital carbon removal industry.”

In July, BA parent IAG joined with Airbus and a number of major airlines to sign Letters of Intent to explore opportunities for a future supply of carbon removal credits from direct air carbon capture technology. As part of the agreements, the airlines have committed to engage in negotiations on the possible pre-purchase of verified and durable carbon removal credits starting in 2028 through to 2028. The carbon removal credits will be issued by Airbus partner 1PointFive – a subsidiary of Occidental’s Low Carbon Ventures business and the global deployment partner of DAC company Carbon Engineering. The Airbus partnership with 1PointFive includes the pre-purchase of 400,000 tonnes of carbon removal credits to be delivered over four years.

On November 30, the European Commission is expected to table a legislative proposal that would establish a regulatory framework for the certification of carbon removals.

BA Better World explainer video on carbon removals

Top photo: British Airways

British Airways has agreed to accelerate the Project Speedbird large-scale sustainable aviation fuel production initiative it created in 2021 with LanzaJet and Nova Pangaea Technologies. As part of the agreement, the airline’s parent company IAG will invest in the next phase of development work, with construction to begin possibly as early as next year and production to start in 2026. Located in the north-east of England, the project would transform agricultural and wood waste into 102 million litres of SAF per year, which BA would offtake to help power its flights. Meanwhile, the airline has also launched enhanced online platforms for its corporate and individual customers to calculate flight carbon emissions and mitigate their climate impact. Customers have previously been able to use the airline’s carbon offsetting tool to purchase offsets and sustainable aviation fuel but in a partnership with climate tech company CHOOOSE, the new CO₂llaborate programme will give them more control over the amount of SAF versus verified carbon offsets they wish to purchase.

Project Speedbird was granted nearly £500,000 ($570,000) by the UK’s Department for Transport (DfT) ‘Green Fuels, Green Skies’ competition to fund an initial feasibility study for the early-stage development of the project. With the work now completed, the next stage of development is now ready to proceed, says British Airways, and the partners have applied for an additional grant from the DfT’s Advanced Fuels Fund.

“SAF is in high demand but in short supply across the globe and so it is essential that we scale up its production as quickly as possible,” commented the airline’s Director of Sustainability, Carrie Harris. “With further investment and continued government support, Speedbird will be a key and pioneering project in the production of SAF here in the UK.”

Once in operation, the facility would be the first in the UK to utilise independently verified sustainably-sourced agricultural and wood waste to produce SAF. The SAF will be developed using a combination of technologies based on Nova Pangaea’s REFNOVA proprietary patented process of converting the waste into bioethanol and also biochar, a carbon-rich charcoal-like material left over after processing and considered a natural carbon removal method. Biochar can be used to amend and restore impoverished soils by better retaining nutrients required for plants to grow, and by filtering healthy water for accelerated crop growth, delivering a circular economy for the agriculture industry. Biochar can replace fertilisers that use fossil fuels as their feedstock and removes carbon from the atmosphere, with the potential to generate high-integrity carbon credits.

“This project will deliver the first end-to-end, sustainable value chain from agricultural and wood waste to SAF in the UK,” said Sarah Ellerby, CEO at Nova Pangaea Technologies, which has a pre-commercial plant expected to be in commercial production in 2023. “The support from British Airways is a vote of huge confidence in our technology and will accelerate its commercialisation.”

Added Harris: “The biochar carbon removal opportunities are another important aspect of this impressive, innovative project that can contribute to our net zero action.”

LanzaJet’s proprietary and patented alcohol-to-jet technology will be utilised to convert the bioethanol to produce SAF and renewable diesel.

The SAF produced would reduce net lifecycle emissions by 230,000 tonnes a year, claim the partners, the equivalent emissions of around 26,000 British Airways domestic flights. Overall, the facility would have the potential to reduce CO2 emissions by up to 770,000 tonnes a year through the additional production of biochar and 11 million litres of renewable diesel.

“The UK is a critical market in the decarbonisation of the aviation industry and this partnership brings together the full value chain from agricultural and wood waste to finished SAF and use by British Airways. As the UK sits at an inflection point in its quest to decarbonise, Project Speedbird represents historical significance with an eye towards the future,” commented Jimmy Samartzis, CEO of LanzaJet. The airline is already an investor in LanzaJet, which last month announced it had received a $50 million grant from Breakthrough Energy towards funding of its Freedom Pines Fuels SAF facility in Georgia, US.

Under a multi-year agreement with energy company Phillips 66, BA is already using supplies of SAF produced at the Phillips 66 Humber Refinery, also in north-east England, to power a number of its flights from London Heathrow, and the airline’s customers can contribute towards purchase of the SAF to reduce their flight emissions.

Under its partnership with CHOOOSE, the CO₂llaborate programme has new platforms for corporate and individual customers. Individuals can take climate action before, during or after their journey, and offers a more precise emissions calculation than before and more control over the amount of SAF versus verified carbon offsets they wish to purchase through a new adjustable slider feature. They can access the platform directly from their seat during flight using the airline’s free wi-fi portal, or at any time before or after their flight by visiting the CO₂llaborate platform accessible on ba.com. Choosing the carbon offset option supports a rainforest protection project in the Democratic Republic of the Congo and an energy-efficient cookstove project in Nigeria, in line with the UN Sustainable Development Goals.

In a first for corporate customers, the CO₂llaborate platform will also offer a dedicated climate programme for companies to measure, reduce and manage the carbon emissions associated with their business flying. They will get access to a dashboard that shows the CO2 emissions generated from their business travel and receive monthly emissions reports. Companies will then be able to select how to address their carbon emissions by selecting specific climate solutions ranging from purchasing SAF to contributing to certified carbon offset projects. BA says the platform will enable users to track and report on their climate impact over time and learn about the climate solutions they are supporting.

“We know that many of our customers want to fly with sustainability in mind and while we work on delivering our own short, medium and long term initiatives to achieve net zero emissions by 2050, we know many of our customers want to take action today too,” said BA’s Harris. “This new CO₂llaborate platform further empowers our customers to make sustainable choices when flying with us. We look forward to working with CHOOOSE to evolve the platform as we continue to drive the decarbonisation of our industry.”

The venture-backed, Norway-based CHOOOSE describes itself as a complete platform that enables its partners to build and manage high-impact climate programmes through flexible integrations, customer-friendly interfaces, automated carbon measurement and a connected marketplace of climate solutions.

“Partnering with British Airways is a true milestone in bringing climate solutions to both leisure and corporate travellers,” commented CHOOOSE CEO and Founder Andreas Slettvoll. “British Airways has always been a north star to us in innovation in the airline industry and we are proud to support them in their relentless work on their most important journey yet, their journey to net zero.”

Image: British Airways

European low-cost carrier easyJet has announced a broad package of technical and operational initiatives to expedite its transition to net zero carbon emissions by 2050, pledging to adopt new technologies as they become available. A key element of its Net Zero Roadmap is a partnership with Rolls-Royce to develop hydrogen engine technology for narrowbody aircraft, a departure from its previous strong focus on electric-powered airliners. The easyJet SBTi-aligned strategy also includes the addition of 168 new Airbus A320 neo-family jets, a five-year contract to procure sustainable aviation fuel, an agreement with Airbus to support the development of carbon removal technology, and investment in new software designed to cut fuel use by optimising aircraft descents. The airline anticipates a 78% reduction in its carbon emissions per passenger km by 2050, with the balance of emissions addressed through carbon removal. It also released the findings of a study that found 78% of British travellers would now choose an airline based on its sustainability credentials. EasyJet is also to stop offsetting carbon emissions from its aircraft on bookings made after December, although it will offer an offsetting option to its passengers.

“We’re the first airline to outline an ambitious roadmap in which zero carbon emission technology plays a key role to take us to net zero emissions by 2050, and ultimately to zero carbon emission flying across our entire fleet,” said easyjet CEO Johan Lundgren at an event to launch the net zero roadmap. “I’m delighted this ambition is soon moving one step closer as our partner Rolls-Royce is making the final preparations for the first hydrogen engine ground tests to commence.”

While it continues to explore “all options” for zero carbon emission flight, and acknowledges that “over time, individual elements may need to be adjusted and scaled up or down”, easyJet singled out hydrogen as the propulsion technology it considered most suitable for short-haul operations.

“Based on today’s technological advances, hydrogen shows the most potential for a short-haul airline like easyJet to truly decarbonise,” the airline said. “Hydrogen has no operational carbon emissions. It also has the potential to significantly reduce non-CO2 emissions from flying. Over the past couple of years, the development of zero carbon emission technology has accelerated exponentially, and easyJet is working with partners, including Airbus, Rolls-Royce, GKN Aerospace, Cranfield Aerospace Solutions and Wright Electric, to achieve this.”

While it awaits the commercialisation of new propulsion and other technologies, easyJet will induct 168 new Airbus A320 neo (new engine option) aircraft. It already operates more than 300 A320-family jets, including 59 neo variants, which are at least 15% more fuel-efficient than earlier models.

The airline also confirmed that it would procure SAF for the next five years from its long-term fuel supplier Q8 Aviation, a division of Kuwait Petroleum Corporation. Details of the SAF volumes and feedstocks were not revealed. But last year, easyJet became the first airline to operate from London’s Gatwick Airport with blended fuel provided by Q8, the 30% SAF portion provided by Finnish producer Neste, which uses waste fats, oils and greases for its product. “We will continue to use SAF as required until our fleet has been fully transitioned to zero carbon emission aircraft, to achieve material lifecycle carbon emissions reductions in comparison to kerosene,” said David Morgan, easyJet’s COO.

Additionally, easyJet has signed a letter of intent with Airbus to support the development of carbon removal technology, through which carbon dioxide is siphoned from the atmosphere and stored permanently underground. This aligns with the airline’s view that carbon offsetting is only a short-term measure, and its commitment to discontinue ‘out of sector’ offsetting, which enables carbon emissions to be offset through investments in sustainability initiatives elsewhere.

The airline’s previously-announced target of a 35% reduction in carbon emissions intensity by 2035 has been validated by the Science-Based Targets initiative (SBTi), it says, which precludes the use of out-of-sector offsetting. Between November 2019 and June this year, easyJet offset almost 8.7 million tonnes of its carbon emissions. It will now focus on the initiatives in its Net Zero Roadmap, which are all designed to reduce the airline’s own emissions at source, or capture and dispose of atmospheric CO2.

A range of operational improvements and efficiencies feature in easyJet’s Net Zero Roadmap, including the introduction of Descent Profile Optimisation (DPO), a programme which updates the flight management system to enable more efficient descents, reducing fuel burn and carbon emissions. Used with the Continuous Descent Approach system on all compatible aircraft, this technology upgrade across the easyJet fleet is forecast to reduce carbon emissions by 88,600 CO2 MT per year.    

The airline is also increasing use of artificial intelligence to improve efficiency, alongside practices including single-engine taxiing on arrival and departure, the use of advanced information on weather conditions, and engine core washing to improve efficiency by removing debris and impurities. It has also focused on supplier agreements, preferring those with lower carbon emissions in production and delivery, and reducing reliance on single-use plastics in packaging.

As well, easyJet has released the results of a survey of 2,000 British holidaymakers, which found that 78% would choose an airline based on its sustainability credentials, 76% would actively seek to reduce the environmental impacts of future journeys and 82% believe zero carbon emission aircraft offer the best option for decarbonising aviation.

Beyond initiatives which directly reduce or compensate for its own emissions, easyJet has also included in its Net Zero Roadmap strong advocacy for government policies to expedite the decarbonisation of air transport.

“Decarbonising aviation is a major undertaking for which the whole sector is coming together, but we also require the support from UK and European governments to help us achieve net zero, and we have clearly outlined actions needed from them,” said Lundgren.

These initiatives include incentives to fund the development, scale-up and use of zero-carbon emission technologies and aircraft, incorporating hydrogen as a SAF equivalent in both the EU’s ReFuelEU Aviation proposal and the UK’s SAF programme, supporting the development of hydrogen supply and infrastructure at airports, and linking passenger taxes to flight emissions to incentivise the shift to zero carbon emission aircraft.

The airline has also ramped up pressure for urgent reforms of airspace management in the UK and Europe. “This is crucial for the entire industry,” argues easyJet, “as it has the biggest potential to achieve carbon reductions right now, as more direct flight paths lead to shorter flying times, which reduce fuel burn and resulting emissions.” The airline is working closely with stakeholders and public authorities to expedite reform through initiatives including the Single European Sky and the UK’s airspace modernisation plan.

The easyJet SBTi-aligned roadmap to net zero emissions by 2050

Top photo: CEO Johan Lundgren unveils easyJet’s net zero roadmap and technology partners

Hong Kong’s Cathay Pacific Airways will acquire 38 million US gallons of blended sustainable aviation fuel (SAF) at San Francisco International Airport from California-based producer Aemetis over a seven-year period commencing in 2025. The deal is part of a 350-million-gallon commitment by the oneworld airline alliance, of which Cathay is a founding member. The product will be a blend of 60% Jet A1 fuel and 40% SAF, to be comprised of cellulosic hydrogen produced from waste wood, then combined with other wastes, non-edible sustainable oils and zero carbon intensity hydroelectric power. It will be produced at the Aemetis Carbon Zero plant, which is being developed in Riverbank, east of San Francisco. The fuel deal coincides with Cathay’s expansion of its Fly Greener carbon offset programme to include air cargo services and follows the launch earlier this year of its Corporate SAF Programme, through which customers can help compensate for business travel and air freight emissions by contributing to the cost of the airline’s sustainable fuels.

“Cathay Pacific continues to reaffirm its commitment to addressing climate change despite these challenging times,” said the company’s CEO Augustus Tang. “In the past few years, we have announced our carbon net-zero by 2050 target and our goal of achieving 10% use of SAF by 2030. In doing this, we have built a robust SAF procurement strategy to help meet our goals.

“We are pleased that this agreement with Aemetis will contribute to that effort, and we hope it will also send the right signal to the SAF industry to encourage the much-needed investment and scaling up of its supply chain,” added Tang, reinforcing broad industry hopes of global government support and policies to help deliver net zero flight emissions by 2050.

Aemetis CEO Eric McAfee said: “The Aemetis Carbon Zero plant under development in the Central Valley of California is designed to utilise zero carbon intensity electricity, negative carbon intensity hydrogen from waste wood and renewable oils along with CO2 sequestration to produce low carbon intensity sustainable aviation fuel.”

But, he added: “While the technology exists today, sustainable aviation fuel is not yet available at scale. Offtake agreements like oneworld’s commitment, as well as targeted investments, regulations and government support mechanisms, will help enable the industry’s transition towards SAF.”

So, too, will airline customer programmes such as Cathay’s Fly Greener carbon offset initiative, which has just been extended to enable cargo clients to measure the carbon emissions of specific shipments and the costs of accredited offsets. Although customers can already estimate their potential emissions by searching for flight connections via the Cathay Cargo website, the new programme uses a sophisticated carbon emissions calculator which enables registered customers to offset their shipments by airwaybill (AWB) number, up to five of which can be simultaneously lodged.

The assessment tool, which uses the latest IATA methodology, was designed by Cathay subsidiary Global Logistic System and shows the volume of emissions and the offset charge in local currency, calculated by freight weight, aircraft type, actual route flown and journey distance. After each submission, a spreadsheet is sent to the customer detailing total freight carried and claimed, and a calculation of the carbon offset valuation. Payment generates a certificate highlighting the offset total and the sustainability project, with funds transferred to validated initiatives though carbon credits purchased by Cathay Pacific.

“We know that carbon offset calculations can be complex and need to be accurate for sustainability auditing purposes,” said Chris Bowden, Cathay’s Head of Cargo Global Partnerships. “We believe that the ease and simplicity of Fly Greener and the carbon emissions calculator makes the rigour and complexity that goes into carbon emissions calculations straightforward and user-friendly, which is something our customers have been actively seeking.”

Initially, the emissions calculator will accept retrospectively-lodged AWB numbers. But future versions of the programme will embed the carbon measurement tool into Cathay Pacific Cargo’s digital booking and confirmation system, Click & Ship, enabling freight customers to add offsets directly into their bookings.

Photo: Cathay Pacific

The SkyTeam airline alliance has just completed its first Sustainable Flight Challenge, in which member airlines demonstrated or tested initiatives in the air and on the ground to help reduce their carbon emissions, with the results to be shared across the industry. The challenge, which required participants to maximise decarbonisation measures on specific flights between May 1 and 14, attracted 16 of the alliance’s 18 members, and delivered outcomes including services part-powered by large volumes of sustainable aviation fuel and weight-saving operational measures such as the use of new, lightweight aircraft tyres. The concept of the Sustainable Flight Challenge was developed by The Bold Moves, a group of employees within SkyTeam member airline KLM, who were inspired by a 1934 air race between London and Melbourne, designed to demonstrate the possibilities of long-range commercial flights. SkyTeam adopted the KLM idea and expanded it to encourage all its member airlines and partners to participate, reports Tony Harrington. Meanwhile, SkyTeam member Saudia has undertaken what it claims is the world’s longest net positive flight through a carbon offsetting partnership with CarbonClick and aviation consultancy SimpliFlying.

“The climate crisis is the greatest challenge facing our industry, and there’s no time to lose,” commented SkyTeam on the Sustainable Flight initiative. “As airlines, we need to reshape the future of air travel for generations to come. Together, we are committed to further reducing our carbon footprint by finding new ways to cut emissions, make our fleets more efficient and better care for the world we connect. We’re challenging ourselves to innovate, reaching for new heights to find as-yet undiscovered solutions that we can put into practice across our industry.”

As originator of the Sustainable Flight Challenge, KLM operated two flights from Amsterdam as part of the project, one a Boeing 787-10 widebody service to Edmonton, Canada, the other an Embraer E190 regional jet to Porto, Portugal, each incorporating more than 50 efficiency measures, including a 39% blend of sustainable aviation fuel. Weight-saving initiatives included the use of artificial intelligence modelling to predict the amount of water needed for each flight, lightweight cargo pallets and nets, and optimised aircraft loading to ensure the best centre of gravity, to improve flight aerodynamics and reduce fuel burn by 1.5-2%. Pilots also collaborated with air traffic controllers to identify the most efficient air routes, while on the ground, business class passengers were asked to pre-select meals in order to minimise uplift of catering which would not be used, while transport companies delivering freight were asked to use vehicles powered by electricity or biodiesel fuel.

Air France also operated two flights part-powered by SAF, and performed with new, more fuel-efficient jets – an Airbus A350 from Paris to Montreal, using a 16% SAF blend produced by TotalEnergies, and an Airbus A220 from Paris to Lisbon with a 30% SAF mix, both well above the mandatory 1% blend required on all flights from France, and aligned with the airline’s target of 30% less CO2 emissions per passenger kilometre by 2030, compared to 2019. The airline said both flights were also supported by initiatives including single-engine taxiing and optimised routes, each achieving CO2 reductions of close to 45% compared to routine services. It foreshadowed greater use of AI to optimise flight paths, and use of autonomous tractors to help decarbonise baggage transport at airports.

In the US, Delta Air Lines used a Boeing 737-900ER – the most fuel-efficient aircraft type in its fleet – to operate a sustainable flight from its Atlanta home base to Salt Lake City. The plane was part-powered by 400 gallons of SAF, provided by Gevo, and the largest volume of sustainable fuel uplifted on a flight from Atlanta. The aircraft was also equipped with new main landing gear tyres which reduced weight by 100 pounds (45kgs), while at both ends of the journey the flight was serviced by 100% electric ground equipment used to transport baggage and fuel. Delta has pledged that 25% of its ground service vehicle fleet will be electrically powered by the end of 2022, up from 20% now, and rising to 50% by the end of 2025. Other features of its sustainable flight included recyclable packaging for beverages and no disposable plastic.

Another SkyTeam member, Saudi Arabian Airlines (Saudia), as part of the Sustainable Flight Challenge, has claimed the world’s longest net positive flight through a carbon offsetting partnership with New Zealand-based CarbonClick and aviation consultancy SimpliFlying. The airline said 346 tonnes of carbon emissions were offset from a six-hour, Boeing 787-9 flight between Jeddah and Madrid. The flight also incorporated the first in-flight ‘sustainability lab’, in which passengers contributed suggestions on how to reduce the environmental impact of flying.  To offset the flight’s emissions, CarbonClick will apply the airline’s contributions to the generation of wind-powered electricity in India, enabling wind turbines to be powered for 26 days, and delivering sustainable electricity to communities in Bhuj, in the western state of Gujurat.

SkyTeam said the pressures presented by Covid-19 meant that not all of the alliance’s member airlines could participate in the inaugural Sustainable Flight Challenge but expressed confidence that more would join in future years, with outcomes shared not only across the alliance, but further afield. “The industry as a whole will benefit from the challenge,” said SkyTeam. “That’s because everything we learn we will share open source. It’s our commitment to finding new ways to reduce our industry’s footprint and bring the future of sustainable air travel forward. What’s more, we hope to broaden participation in years to come.”

Photo: KLM

With travellers, corporate travel managers and travel agents increasingly demanding accurate and precise emissions data, airline trade body IATA has launched the first industry-developed methodology for calculating CO2 emissions per passenger for a specific flight. The IATA Recommended Practice Per-Passenger CO2 Calculation Methodology was developed by a working group consisting of 20 major airlines, with major aircraft manufacturers validating the methodology as it was being developed. In parallel, IATA said it consulted with stakeholders across the industry, including international standards-setting bodies and major freight forwarders and shippers. The adoption of the methodology is subject to a vote being taken on March 29 by member airlines at the IATA Passenger Services Conference, after which more details about the methodology will be released. IATA’s Director General, Willie Walsh, said the CO2 calculation would enable organisations and individuals to make informed choices about flying sustainably, including decisions on investing in voluntary carbon offsetting or the use of sustainable aviation fuels.

“The plethora of carbon calculation methodologies with varying results creates confusion and dents consumer confidence,” he commented. “Aviation is committed to achieving net zero by 2050. By creating an accepted industry standard for calculating aviation’s carbon emissions, we are putting in place essential support to achieve this goal. The IATA Passenger CO2 Calculation Methodology is the most authoritative tool, and it is ready for airlines, travel agents and passengers to adopt.”

IATA reported a large number of travel providers, travel agents and corporate travel management companies had already expressed interest in using the methodology to calculate passenger CO2 emissions. Once approved by IATA’s standard setting body (the Passenger Standards Conference), the industry body said the Recommended Practice Methodology will be published on its website and accessible to everyone [*].

The following factors have been taken into account by the methodology:

• Guidance on fuel measurement, aligned with ICAO’s CORSIA carbon offsetting scheme;
• Clearly defined scope to calculate CO2 emissions in relation to airlines’ flying activities;
• Guidance on non-CO2 related emissions and Radiative Forcing Index (RFI);
• Weight-based calculation principle: allocation of CO2 emission by passenger and belly cargo;
• Guidance on passenger weight, using actual and standard weight;
• Emissions Factor for conversion of jet fuel consumption to CO2, fully aligned with CORSIA;
• Cabin class weighting and multipliers to reflect different cabin configurations of airlines; and
• Guidance on SAF and carbon offsets as part of the CO2 calculation.

IATA added that although some elements of its methodology aligns with ICAO’s, other important elements “have been reviewed, updated and improved to reflect recent developments in the industry.” As an example, it said, the allocation of fuel in relation to operational equipment weight and cabin class has been revised based on airline and aircraft manufacturer information, while guidance on SAF and carbon offsets has been included.

Although the calculation scope is confined to the fuel burn and CO2 emissions related to flight operations, IATA said there was flexibility to optionally include upstream CO2 emissions – those that are in relation to the production or transportation of jet fuel, as opposed to direct emissions, resulting from combustion during a flight – should these be required by local regulations. In addition, although IATA stressed it “does not recommend taking them into account”, the user can display non-CO2 and non-aircraft emissions, as well as RFI, indicating they were included in the calculation.

“It is a major piece of work and I thank all the 20 airlines that worked with us to develop a passenger CO2 standard methodology that will provide transparency, comparability and accuracy,” said Michael Schneider, Assistant Director, Aviation Environment, IATA. “The standard has been developed by the industry for the industry and is to be used by travel management companies, online travel agencies, travel search engines, travel agents and anyone who wants to understand the environmental impact of taking a flight. We’re grateful for the support given by manufacturers, freight forwarders, shippers and corporates, who have given their input and insights.”

[*] Update: Details on the methodology can now be found here

Image: Skyscanner