Aviation Sustainability and the Environment, CAPA 14-Apr-2022

Birmingham Airport published (12-Apr-2022) its roadmap to reaching net zero carbon emissions by 2033, with commitments including:

• Initial multi-million pound commitment up to 2025 to reduce Scope 1 and 2 emissions by 60%, via investments in on-site renewable energy generation, energy efficient lighting and energy management technology;
• Source up to 40% of electricity through solar power;
• Switch entire airport site to 100% green tariff electricity from Apr-2022;
• Extend the number of electric vehicle charging points from 25;
• Upgrade heating and cooling infrastructure;
• Investment in new emerging technologies to generate low carbon energy beyond 2030;
• Engagement and collaboration with stakeholders.

CEO Nick Barton said: "Our investment to become net zero will escalate immediately with a multi-million pound outlay up to 2025, focusing on renewables and energy efficiencies", adding: "The second phase of investment will be developed to complete our net zero transition by 2033, with a focus on emerging technologies to create a low-carbon environment". [more - original PR]

Original report: Birmingham Airport's Flight to Net Zero Takes Off

Birmingham Airport has published its roadmap to become net zero carbon by 2033.

Having first announced its ambition in 2019, the Midlands' airport remains steadfast in achieving its 2033 target. Its roadmap prioritises zero-carbon airport operations while minimising the use of carbon offsets.

The plan builds on a decade of learning and investments that have already seen emissions, which the airport controls, reduce by 33%. This has been achieved through the use of solar, electric vehicle transition and energy-efficiency measures.

Birmingham Airport commitment over the next decade includes:

• an initial multi-million pound commitment over the next four years to reduce emissions that the airport controls (*Scope 1 and 2) by 60% by investing in on-site renewable energy generation, energy-efficient lighting and energy management technology.
• sourcing up to 40% of electricity used at the airport through solar power.
• switching the whole airport site to 100% green tariff electricity from April 2022.
• extending the number of electric vehicle charging points from 25 to prepare for the growing number of low-carbon vehicles accessing the airport.
• renewing the airport's heating and cooling infrastructure, including upgrades to the building fabric and a gradual transition to low carbon.
• investment in new emerging technologies to generate low-carbon energy beyond 2030.
• engaging with a range of stakeholders including customers, employees, tenants and political stakeholders to collaborate and bring lower-carbon technologies, aircraft and operations to Birmingham Airport.

Emissions from UK airports represent around 0.7% of UK aviation emissions. So, while it is important Birmingham Airport reduces its own Scope 1 and Scope 2 emissions, it is also essential to support airlines and other third parties using the airport to reduce their airport-associated emissions.

Birmingham Airport's chief executive, Nick Barton, said: "Our Net Zero Carbon Plan sets out how we will become net zero by 2033 through investments in energy saving initiatives and stakeholder partnerships over the next decade.

"Our investment to become net zero will escalate immediately with a multi-million pound outlay up to 2025, focusing on renewables and energy efficiencies. The second phase of investment will be developed to complete our net zero transition by 2033, with a focus on emerging technologies to create a low-carbon environment.

"While we have a good track record in achieving low carbon operations, we know that meeting our net zero target will need more impactful and immediate action. Through innovation and partnership cooperation, we can make real change to climate impact by our combined operations.

"We're proud to have made this commitment and eager to reduce our carbon footprint for emissions within our own control, but also to innovate with our stakeholders to introduce low-carbon operations associated with aircraft and ground movements."

Alongside the launch of its Net Zero Carbon Plan, the airport has also published its Sustainability Update for the year 2020/21, which describes progress made in the first year of implementing its 2020-2025 Sustainability Strategy. This outlines the aims and objectives for climate change, local air quality, waste, supply chain and the circular economy, water, biodiversity, noise, community investment and wellbeing, and economic development and employment.

Nick added: "When we launched the Sustainability Strategy in late 2019, never could we have imagined the catastrophic impact the pandemic would have on all our lives. While by no means unique, the impact on aviation has been severe and we have had to diversify and prioritise investments over the last few years.

"As we now see signs of recovery, I feel confident that we will meet net zero by 2033 and deliver on our sustainability strategy commitments in the coming years. Being a responsible neighbour is a key business imperative for Birmingham Airport so I hope these publications will inform our stakeholders on how we will continue to create jobs and serve our region's flying needs whilst mitigating our impact on the environment and surrounding communities."

Government policy is supportive of allowing time for technological innovation to decarbonise air travel. It has formed the Jet Zero Council to develop a coordinated approach to policy and regulatory framework needed to deliver net zero aviation by 2050.

Birmingham Airport recently signed the The Toulouse Declaration which marks the first time that European Governments, the European Commission, industry, unions and other key stakeholders formally align on aviation decarbonisation. It is a highly significant moment, paving the way for the concrete next steps, both in the establishment of an EU Pact for Aviation Decarbonisation, and globally as we look to the UN's ICAO to set a global goal for international aviation later this year.

The airport is also a member of Sustainable Aviation, a long-term strategy which sets out the collective approach of UK aviation to tackling the challenge of ensuring a cleaner, quieter, smarter future for the aviation industry. Launched in 2005, it is a world first, bringing together major UK airlines, airports, manufacturers, air navigation service providers and key business partners.

Queensland's Deputy Premier Steven Miles announced (13-Apr-2022) Gladstone was selected as the location for a new AUD500 million (USD372.5 million) renewable diesel and sustainable aviation fuel (SAF) biorefinery.

Mr Miles said Oceania Biofuels selected a site within the Yarwun Industrial Precinct in the Gladstone State Development Area for the refinery, which is now under contract with Economic Development Queensland.

Mr Miles said the project "will be Australia's first commercial sustainable aviation fuel biorefinery, creating around 60 direct jobs and indirectly supporting an estimated 500 regional jobs during construction and operation", noting: "Queensland has a great opportunity to gain a strong international reputation as the location for biofuels production in the western pacific region and this new plant will signal to the world we are ready".

Construction is due to commence in 2023. [more - original PR]

Original report: New $500 million biorefinery planned for Gladstone

Deputy Premier, Minister for State Development, Infrastructure, Local Government and Planning and Minister Assisting the Premier on Olympics InfrastructureThe Honourable Dr Steven Miles

Gladstone has been selected as the location for a new $500 million renewable diesel and sustainable aviation fuel biorefinery.

Acting Premier Steven Miles said Oceania Biofuels selected a site within the Yarwun Industrial Precinct in the Gladstone State Development Area for their new biofuel refinery, which is now under contract with Economic Development Queensland.

"The proposed $500 million project will be Australia's first commercial sustainable aviation fuel biorefinery, creating around 60 direct jobs and indirectly supporting an estimated 500 regional jobs during construction and operation, providing a great economic boost for the local community," Mr Miles said.

"Oceania Biofuels were attracted to Queensland because of our commitment to develop a biofuels industry in this state.

"This project, in addition to Northern Oil's Advanced Biofuel Pilot Plant, is growing this emerging industry in Gladstone, and strengthens our work towards creating a sustainable, export-orientated industrial biotechnology sector for Queensland, fueling our economic future and contributing to our decarbonisation targets.

"Queensland has a great opportunity to gain a strong international reputation as the location for biofuels production in the western pacific region and this new plant will signal to the world we are ready."

Minister for Regional Development and Manufacturing, Minister for Water and Member for Gladstone Glenn Butcher said Gladstone was the ideal location for the refinery.

"Internationally, fuel security is a major issue, so this biorefinery will help improve Australia's sovereign capability to produce and distribute finished fuels," Mr Butcher said.

"It also adds diversity to the mix of new industries investing in Gladstone, such as Alpha HPA's high purity alumina industrial plant, Acciona's Aldoga Solar Farm, Stanwell Corporation's renewable hydrogen facility and Fortescue Future Industries' hydrogen equipment manufacturing hub.

"Commitments like this help to propel Central Queensland towards becoming hub for new industry, creating long term jobs in the region, as part of Queensland's plan for economic recovery."

Mike Everton, CEO, Oceania Biofuels, said it is exciting to have the project progress to the milestone of securing a site.

"We are thrilled to be bring this world class project to Queensland. These greener alternative fuels will help reduce emissions from our planes and heavy vehicles, while creating a bridge to a more sustainable future," Mr Everton said.

"This is good news for Queensland and an exciting leap for Australia's energy industry, creating regional jobs and a new export industry that will provide decarbonised fuel options for Australian industries.

"Gladstone is the ideal location for us as it has a highly skilled workforce and access to a deep-water port, furthering our export potential.

"The purpose-built plant will use locally sourced waste and sustainable feedstock such as tallow, canola and used cooking oil to produce more than 350 million litres of sustainable aviation fuel and renewable diesel per year."

Construction of the plant is due to commence onsite in Gladstone in 2023.

The Queensland Government's Biofutures 10-Year Roadmap and Action Plan outlines a vision for a $1 billion sustainable industrial biotechnology and bioproducts sector in Queensland, as part of Queensland's economic recovery plan.

Skyscanner educating customers to capture demand for sustainable choices

RMI announced (07-Apr-2022) its Center for Climate-Aligned Finance will partner with Bank of America, BNP Paribas, Citi, Crédit Agricole CIB, Societe Generale and Standard Chartered to form the Aviation Climate-Aligned Finance Working Group, with the aim to help decarbonise the aviation sector.

The working group intends to create a climate aligned finance framework by the end of 2022 that defines common goals for action in aviation sector decarbonisation.

The working group will invite other financial institutions to adopt the framework by the end of 2022 and help set global best practices on climate for aviation finance.

The framework is a commitment by the participating financial institutions to annually assess and disclose the degree to which greenhouse gas emissions from the aircraft, airlines and lessors that they finance are in line with 1.5C climate targets, consistent with the UN-convened Net-Zero Banking Alliance.

Under the framework, financial institutions will be able to assess the emissions of their aviation loan books and work with clients to report emissions, fund lower carbon solutions and support investments in new technologies. [more - original PR] [more - original PR - II] [more - original PR - III]

Original report: Six Global Financial Institutions Chart a Flight Path to Decarbonizing Aviation

Leading lenders to the global aviation sector - Bank of America, BNP Paribas, Citi, Crédit Agricole CIB, Societe Generale and Standard Chartered - are working together to develop a climate-aligned finance framework to support decarbonization in the aviation industry.

Six top lenders to the aviation sector - Bank of America, BNP Paribas, Citi, Crédit Agricole CIB, Societe Generale and Standard Chartered - today announced that they will partner with RMI's Center for Climate-Aligned Finance to help decarbonize the aviation sector through the formation of the Aviation Climate-Aligned Finance Working Group. The Working Group aspires to create a collective climate-aligned finance (CAF) framework that defines common goals for action for aviation sector decarbonization. The CAF framework is a commitment by participating financial institutions to annually assess and disclose, consistent with the UN-convened Net-Zero Banking Alliance, the degree to which the greenhouse gas emissions from the aircraft, airlines and lessors that they finance are in line with 1.5°C climate targets.

The Working Group aims to create an industry-supported CAF framework before the end of 2022. The framework will create consistency and transparency in reporting, establishing a level playing field for measuring progress against climate targets. With the CAF framework, financial institutions will be able to assess the emissions of their aviation loan books and work with their clients to report their emissions, fund lower-carbon solutions and support investments in new technologies.

The aviation sector accounts for 2.5% of global CO2 emissions, and air traffic is projected to increase significantly through 2050. In a business-as-usual scenario, aviation alone could use up to 10% of the planet's remaining global carbon budget by 2050. The aviation sector has initiated efforts in response, including the International Air Transport Association's commitment to achieve net-zero emissions by 2050. To support these goals, the aviation sector is seeking to invest in more efficient aircraft, support the development of new aviation technology and accelerate the transition to sustainable aviation fuels (SAF). The financial sector will play a crucial role in funding the technologies, projects and companies involved in this net-zero transition.

The Working Group comprises senior aviation team members from each participating financial institution and will be facilitated by the Center for Climate-Aligned Finance. The Working Group will forge the measurement methodologies, emissions benchmarks, data pathways, reporting and governance structure of the CAF framework in collaboration with existing decarbonization initiatives. The Working Group will invite other financial institutions to adopt the CAF framework by year-end and help set global best practices on climate for aviation finance.

Financial institutions that are interested in remaining up to date with the process and providing feedback during development are encouraged to join the Review Group. To learn more, financial institutions should submit an expression of interest.

The Center for Climate-Aligned Finance will facilitate engagement between the Working Group and leading aviation and sustainable finance-focused partner organizations to ensure the objectives of firms in the aviation sector and their financial partners are aligned and actionable. Partner organizations include the Glasgow Financial Alliance for Net Zero, including the Net-Zero Banking Alliance (NZBA), and the Clean Skies for Tomorrow coalition. The Center's partnership with NZBA has already helped inform banks' approaches to decarbonization in hard-to-abate sectors and to alignment with a 1.5°C pathway.

The aviation CAF framework will be based on the experience gained from the Poseidon Principles for maritime shipping and the soon-to-be-launched CAF agreement for steel. The Poseidon Principles were launched in 2019 with 11 banking signatories. Today Poseidon counts 29 signatories covering more than 50% of global ship finance. The aviation CAF framework is intended to be designed for similar rapid adoption by aviation financiers globally.

Quotes from Working Group members:
Dan Melaugh, Managing Director, Airlines Global Corporate & Investment Banking at BofA Securities, said, "As the first global financial institution to set a SAF usage and capital deployment commitment, the Aviation Climate-Aligned Finance Working Group builds on our commitment to finance climate solutions. It is critical that we scale innovation and outline a decarbonization pathway for aviation, and we are honored to contribute to this RMI effort."

Bertrand Dehouck, Head of Transportation Capital Markets at BNP Paribas, said, "We are conscious that aviation is a sector for which greenhouse gas emission will be difficult to abate. We are keen on working with RMI and our Aviation Climate-Aligned Finance Working Group partners towards establishing a solid framework to measure the carbon intensity of our aviation finance business and to set climate alignment targets. Our aim is to help foster a framework for our Net-Zero Banking Alliance commitment in view of providing support to our clients towards their own transition."

Munawar Z. Noorani, Global Co-Head of Aviation at Citi, said, "Despite the numerous challenges facing the global economy, we must keep up the strong positive momentum in addressing climate risks, especially in hard-to-abate sectors such as aviation. Following previous partnerships with RMI's Center for Climate-Aligned Finance focused on the shipping and steel industries, Citi is delighted to partner again with RMI in developing a framework to measure and disclose emissions related to financings in aviation. Through this initiative, we seek to further support decarbonization goals articulated by the Net-Zero Banking Alliance, of which Citi is a member."

José Abramovici, Global Head of Asset Finance Group at Crédit Agricole CIB, said, "We are very pleased to be a founding member of the Aviation Climate-Aligned Finance Working Group with RMI and other leading aviation banks. Our intention is to propose a robust and effective framework for the benefit of all stakeholders in aviation finance including banks, investors, airlines and lessors. We firmly believe that decarbonization is key to ensure the long-term future of the aviation industry."

Yann Sonnallier, Global Head of Aviation Finance at Societe Generale, said, "As a founding member of the Aviation Climate-Aligned Finance Working Group, our ambition is to help define within a short time frame a clear and transparent pathway consistent with the objectives of the Paris Agreement, for the benefit of all stakeholders involved in the air transportation industry. After the Poseidon Principles for maritime shipping and the steel initiative, Societe Generale is proud to be part of the driving force to shape the future of a decarbonized aviation industry."

Kieran Corr, Global Head of Aviation Finance and CEO of Ireland, Standard Chartered Bank, said, "Standard Chartered is committed to sustainable social and economic development through our business, operations and communities. We are delighted to be working with RMI as a founding member of the CAF working group, along with other leading aviation banks, to lead the way and develop a robust framework for aviation's pathway to decarbonization."

James Mitchell, director at the Center for Climate-Aligned Finance, said, "Our work across shipping, steel and now aviation shows that collaboration is key to meeting climate commitments and to decarbonizing the hard-to-abate sectors. We commend the Working Group banks for taking this important step toward creating a global platform for accelerating the decarbonization of the aviation sector. The hard work begins now."