Aviation Sustainability and the Environment, CAPA 09-Apr-2020

This CAPA report features a summary of recent aviation sustainability and environment news, selected from the 300+ news alerts published daily by CAPA. For more information, please contact us.

Schiphol Group issues EUR750m green bond

Royal Schiphol Group launched (02-Apr-2020) a EUR750 million green bond under its European medium term note programme. The senior unsecured bonds are due on 06-Apr-2029 and carry a coupon of 2.0% p/a. This green bond offering will support Royal Schiphol Group's investments in green buildings and clean transportation at Amsterdam Schiphol Airport and other airports operated in the Netherlands. [more - original PR]

Original report: Schiphol issues EUR 750 million of green bonds with a tenor of 9 years

ICAO: Benin to participate in voluntary phase of CORSIA

ICAO announced (06-Apr-2020) Benin will participate in the voluntary phase of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) when it commences in 2021. Benin is the 83rd country to confirm plans to participate in the voluntary phase of CORSIA. [more - original PR]

Original report: Benin becomes newest participant in CORSIA emissions offsetting programme

The Australia Institute: Commercial aviation emissions could halve due to coronavirus

The Australia Institute reported (01-Apr-2020) commercial aviation emissions in Australia may decline by more than 50% in 2020 as a result of coronavirus, according to research from the 'Australia Institute Climate & Energy Program'. Key details include:

• Coronavirus related cuts to commercial air traffic already resulted in approximately a 10.3 Mt reduction in global CO2 emissions over Feb-2020 and Mar-2020;
• IATA projects a 38% reduction to air travel in 2020, equating to a 352.7 Mt fall in global civil aviation emissions year-on-year, and a 8.8 Mt CO2 fall in Australian aviation emissions, amounting to a 37% decrease;
• Emissions from Australian commercial aviation may experience a reduction of up to 13.2Mt CO2 in 2020, down 56%, under an extreme scenario of continual grounding of most Qantas and Virgin Australia aircraft for nine months;
• Business travel may not rebound to 2019 levels, given the systemic shift to online conferencing and communication and weakened corporate budgets post coronavirus;
• Under the UN deal on international aviation emissions, major airlines have committed to carbon neutrality using 2020 as the baseline year, which could end up as a record low year for emissions.

The Australia Institute climate and energy program director Richie Merzian stated: "The question remains as to whether Covid-19 pandemic will permanently change our flying habits, given epidemics like Avian flu, MERS and SARS saw the volume of air travel recover within a few short months". [more - original PR]

Original report: Commercial Aviation Emissions Could Halve Due to COVID19

Tourism Industry Aotearoa CEO: We can make a better tourism industry in New Zealand

Tourism Industry Aotearoa CEO Chris Roberts welcomed the New Zealand Government's collaboration with industry and business to plan for the future of tourism (RNZ, 08-Apr-2020). Mr Roberts said: "We can make a better tourism industry in New Zealand, it can be world's most sustainable tourism industry, the most environmentally protective... The one that listens to its communities better than any other tourism industry in the world. That's the opportunity we have right now, so let's take advantage of that opportunity and create something very special out of this crisis".

Green Alliance: CORSIA in its current form is not ambitious enough

Green Alliance reported (01-Apr-2020) a national "office for carbon removal" is vital to guarantee the credibility of carbon offsetting and avoid "junk credits".

Green Alliance reported CORSIA in its current form is not ambitious enough to make the necessary contribution to meeting the global goal set by the Paris climate agreement, or the UK's net zero carbon obligation, and must be strengthened. Green Alliance proposed the use of emissions reductions and carbon removals rather than a single net zero target.

Green Alliance said UK aviation emissions must be reduced by 42% from 36.5 MtCO2 in 2017, to 21 MtCO2 or less in 2050 for there to be enough offsets available to achieve net zero aviation in the UK by 2050.

Green Alliance policy adviser James Elliott stated: "Boosting tree planting and low carbon farming, alongside developing other carbon removal technologies, like bioenergy with carbon capture and storage, is an urgent priority". [more - original PR]

Original report: A national 'office for carbon removal' is vital to guarantee the credibility of carbon offsetting and avoid 'junk credits', says new report

Carbon offsetting is increasingly being used by sectors like aviation as a way to meet net zero carbon emissions by 2050. But a new policy insight by the think tank Green Alliance says that, as the integrity of current carbon offset schemes is questionable, there is no guarantee that a future increase in offsetting will be effective at tackling climate change [1].

It says the only way to ensure the quality and claims of offset schemes is through a national 'office for carbon removal'. The study highlights that well run offset schemes could provide the UK with a huge new source of funding for nature restoration.

Existing carbon offset schemes have been widely criticised for their poor environmental credentials. They are badly regulated and rarely deliver what they promise. Seventy three per cent of credits created under the current biggest carbon offsetting scheme, the UN's Clean Development Mechanism, are unlikely to lead to real additional carbon reductions or removals [2]. This has led to accusations that offsetting is a licence to continue polluting and delay efforts to reduce emissions.

However, as the economy recovers from the current crisis, the increasing purchase of carbon credits by airlines could be a new source of funding for nature restoration in the UK. Under a new carbon offsetting scheme, known as CORSIA, airlines are expected to spend between £4 billion and £18 billion per year on carbon credits globally by 2035 [3].

The report argues that, in its current form, CORSIA is not ambitious enough to make the necessary contribution to meeting the global goal set by the Paris climate agreement, or the UK's legal net zero carbon obligation, and must be strengthened.

There is enormous scope for a much higher level of carbon sequestration in the UK, through tree planting, peatland restoration and other activities like agroforestry and soil management. As a high carbon sector, aviation represents a huge potential source of support as it buys carbon credits to offset its impact.

At a carbon price of £10 per tonne, the market value of natural carbon sequestration by 2030 is estimated at around £87 million per year [5]. Not all sequestration will be sold as carbon credits, but this is still significant extra funding on top of the government Nature for Climate Fund's £640 million over five years.

The report says that, to avoid backlash and ensure the credibility of schemes, it is necessary to guarantee that offsets are verifiable carbon removals. It says the government must:

Regulate and approve high quality carbon offset projects. As the UK has strong regulatory and legal structures, it will be able to ensure reliable offsetting for sectors like aviation, using schemes such as the Woodland Carbon Code to accredit offsets. A new 'office for carbon removal' should be given the role of verification and oversight to ensure offsets are genuinely robust, measurable and benefit the environment.

Set a limit on the number of nature-based carbon credits any one sector can buy. This will prevent 'offset hungry' sectors like aviation from buying up all the carbon credits, so there are none left for sectors like agriculture which will also need them to achieve net zero emissions.

Set two separate targets: one for emissions reductions and one for carbon removals, rather than a single net zero target. This would avoid offsetting causing delays in direct emissions reduction. UK aviation emissions will have to come down by 42 per cent, from 36.5 MtCO2 in 2017, to 21 MtCO2 or less in 2050 for there to be enough offsets available to achieve net zero aviation in the UK by 2050. Direct emission cuts can be achieved by measures such as using less polluting fuels and better demand management.

James Elliott, policy adviser at Green Alliance said:

"Offsetting has become a dirty word for environmentalists because of bad carbon credit schemes and the risk it will be used as an excuse to keep polluting.

But when you look at the numbers it's obvious we have to remove and store a huge amount of CO2 from the atmosphere if we are to reach net zero and avoid the worst impacts of climate change. Boosting tree planting and low carbon farming, alongside developing other carbon removal technologies, like bioenergy with carbon capture and storage, is an urgent priority.

Our proposals would enable the UK to take advantage of a substantial new funding stream for nature via aviation offsetting, while showing the world how these schemes can be done well."