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Aviation Sustainability and the Environment, CAPA 14-Jan-2021

Analysis

Qatar Airways does not intend to operate A380s for the foreseeable future: CEO

Air France KLM Martinair Cargo and Kuehne+Nagel launch zero emission airfreight operation

Gevo launches 'Net-Zero' sustainable fuel concept and selects first site

Uni of Melbourne consumer psychologist: Gen Z cares for environment more than other generations

Norway proposes gradual increase in carbon tax rate

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.

Qatar Airways does not intend to operate A380s for the foreseeable future: CEO

Qatar Airways Group CEO Akbar Al Baker, speaking at CAPA Live January 2021, stated (13-Jan-2021) the airline does not intend to operate its A380 fleet for the foreseeable future and will only operate half its A380 fleet when the aircraft returns to service.

Mr Al Baker said the A380 is "one of the worst aircraft when it comes to emissions".

Air France KLM Martinair Cargo and Kuehne+Nagel launch zero emission airfreight operation

Air France KLM Martinair Cargo and Kuehne+Nagel launched (12-Jan-2021) the first zero emission, carbon neutral airfreight operation between North America and Europe.

The companies will use 100% sustainable aviation fuel (SAF) for services from Los Angeles to Amsterdam from Jan-2021. Air France KLM Martinair Cargo expects other partner companies to join its SAF programme in the near future.

Kuehne+Nagel aims to achieve complete carbon neutrality by 2030. [more - original PR]

Original report: Kuehne+Nagel and Air France KLM Martinair Cargo launch first zero emission air freight route

Kuehne+Nagel and Air France KLM Martinair Cargo launch first zero emission air freight route

  • 100% sustainable aviation fuel (SAF) coverage on the lane Los Angeles to Amsterdam from January 2021
  • Investing in the use of SAF for widespread adoption by the industry
  • More sustainable transport routes and CO2 neutral services to follow as part of the Net Zero Carbon programme

To support the industry’s carbon reduction targets, Kuehne+Nagel and Air France KLM Martinair Cargo have launched the first carbon neutral air freight lane between North America and Europe. This forward-looking initiative marks another step towards the commercial deployment of alternative fuel and companies’ commitment to a sustainable future for aviation.

Proactively addressing its carbon footprint, the year-round transportation of all Kuehne+Nagel cargo on board regular AFKLM flights from Los Angeles to Amsterdam will be fully fuelled by SAF. This first carbon-neutral lane underlines the strong sustainability programmes of both partners, Kuehne+Nagel’s Net Zero Carbon programme and AFKLM’s cargo SAF programme, which aim to connect people and goods through sustainable logistics.

Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics, comments: “The first zero emission route marks the beginning of our journey into CO2 neutral air freight and is another step towards achieving complete carbon neutrality by 2030. At Kuehne+Nagel, we are ready to take leadership and responsibility for the next generation of air transport and encourage our customers and industry colleagues to join us in making sustainable choices available.”

Adriaan den Heijer, Executive Vice President Air France-KLM Cargo and Managing Director Martinair: “The launch of an air cargo SAF programme is an important step in our ambitious sustainability roadmap for the coming years. We are extremely pleased with the willingness and concrete commitment of our partner Kuehne+Nagel to actually shape our common ambition for a more sustainable future. I look forward to other partners joining our SAF programme soon.”

With the chemical and physical characteristics almost identical to those of conventional jet fuel, SAF is the most effective measure the industry has to significantly reduce its carbon footprint. To ensure the lane is fully carbon neutral, all CO2 emissions generated during the production, processing and transportation of SAF will be offset by Kuehne+Nagel supporting carbon reduction projects that carry the highest quality certification currently available: “Verified Carbon Standard (VCS)” and/or “Gold Standard (GS)”.

Gevo launches 'Net-Zero' sustainable fuel concept and selects first site

Gevo introduced (11-Jan-2021) the concept of 'Net-Zero Projects' for the production of energy-dense liquid hydrocarbons using renewable energy and Gevo's proprietary technology.

The concept is to convert renewable energy from a variety of sources into energy-dense liquid hydrocarbons, that when burned in traditional engines, have the potential to achieve net-zero greenhouse gas (GHG) emissions across the whole lifecycle of the liquid fuel.

In addition, Gevo announced plans for the first Net-Zero site to be constructed at Lake Preston (South Dakota), named 'Net-Zero 1'.

Net-Zero 1 is currently expected to have a capacity of 45 million gallons p/a of hydrocarbons for gasoline and jet fuel. [more - original PR]

Original report: Net-Zero 1 Project

Gevo, Inc. (“Gevo”) (NASDAQ: GEVO), announces the concept of Net-Zero Projects for the production of energy dense liquid hydrocarbons using renewable energy and Gevo’s proprietary technology. The concept of a Net-Zero Project is to convert renewable energy (photosynthetic, wind, renewable natural gas, biogas) from a variety of sources into energy dense liquid hydrocarbons, that when burned in traditional engines, have the potential to achieve net-zero greenhouse gas (GHG) emissions across the whole lifecycle of the liquid fuel: from the way carbon is captured from the atmosphere, processed to make liquid fuel products, and including the end use (burning as a fuel for cars, planes, trucks, and ships). Gevo announces that its project currently planned to be constructed at Lake Preston, South Dakota will be the first Net-Zero Project and will be named “Net-Zero 1.” Gevo expects that Net-Zero 1 would have the capability to produce liquid hydrocarbons that when burned have a “net-zero” greenhouse gas footprint.

Net-Zero 1 is currently expected to have a capacity of 45MGPY of hydrocarbons (for gasoline and jet fuel, based on current take-or-pay contracts), to produce more than 350,000,000 pounds per year of high protein feed products for use in the food chain, to produce enough renewable natural gas to be self-sufficient for the production process needs, and also to generate renewable electricity with a combined heat and power system. Net-Zero 1 is also expected to utilize wind energy.

Because of the low-carbon footprint feedstocks, the sustainable agricultural practices used to produce feedstock, and the use of renewable energy for the production processes, much of which is expected to be generated on-site, the hydrocarbon fuel products produced at Net-Zero 1 have the potential to achieve net-zero greenhouse gas emissions as measured across the whole of the lifecycle based on Argonne National Laboratory’s GREET model, the pre-eminent science-based lifecycle analysis model. The GREET model takes into account emissions and impacts "cradle to cradle" for renewable resource-based fuels including: inputs and generation of raw materials, agriculture practices, chemicals used in production processes of both feedstocks and products, energy sources used in production and transportation, and end fate of products, which for fuel products is usually burning to release energy.

The capital cost for Net-Zero 1 is projected to be on the order of $700M including the hydrocarbon production and related renewable energy infrastructure which includes anaerobic digestion to produce biogas to run our plant and generate some electricity on-site. Citigroup is assisting Gevo in raising the necessary capital for Net-Zero 1.

“This is not a new project but rather the first of the projects that we have been working on with Citigroup to get financed. We are naming our future projects Net-Zero to make clear the mission we are on to reduce GHG emissions. By using carbon from the air as our raw material source with its inherent low-carbon footprint, sustainable agriculture, a combination of renewable energy obtained from photosynthesis, wind, and biogas, we see that it is possible to transform renewable energy into liquid hydrocarbon fuels that work with combustion engines typical of cars, planes, and trucks with the added benefit that these fuels have a net-zero carbon footprint across the whole lifecycle. Think about it: it is conceivable to eliminate tailpipe emissions from cars, planes and trucks on a net GHG basis, while leveraging existing cars, planes, and trucks on a full 'cradle to cradle' GHG basis. Our Net-Zero 1 Project isn’t just about capturing renewable energy and carbon, and transforming it into liquid renewable energy; it’s also about generating enormous quantities of protein, and nutrition for the food chain. The high protein feed would be low-carbon footprint too—and we are happy to help farmers raise beef, pigs, chicken, and dairy in a way that lowers GHG emissions. We’ve got work to do to make it all happen,” said Dr. Patrick R. Gruber, Chief Executive Officer, Gevo. “We believe that there will be demand for additional Net-Zero projects in the future,” Gruber continued.

Uni of Melbourne consumer psychologist: Gen Z cares for environment more than other generations

University of Melbourne consumer psychologist Dr Brent Coker, speaking at CAPA Live January 2021, stated (13-Jan-2021) 'Generation Z' "care about the environment more than any other generation", with 73% of Gen Z individuals "willing to buy a new product if the brand supports a good cause".

Dr Coker noted "consumers are increasingly starting to blame brands, or look to brands, in terms of how they're impacting environmental decisions', and how they can assist the conditions. Dr Coker said carbon offsetting should be incorporated into airline marketing, "given we know that features like this strongly affect consumer demand and purchase decision making". 

Norway proposes gradual increase in carbon tax rate

Norway's Government proposed (08-Jan-2021) a new climate action plan to reach its emission reduction target under the Paris Agreement by 2030.

The white paper proposes a gradual increase in the carbon tax rate from its current level of about NOK590 (EUR56.90) to NOK2000 (EUR192.87) per tonne of CO2 equivalents by 2030.

This will progressively increase the cost of emitting CO2 and "give stronger incentives to reduce emissions".

The government stated its policy is not to increase the overall level of taxation and that any tax increase will be offset by reducing other taxes correspondingly. [more - original PR]

Excerpt from original report: Norway’s comprehensive climate action plan

Norway is committed to achieving its emission reduction target under the Paris Agreement. Today, the Government is presenting a white paper describing its action plan for transformation of Norwegian society as a whole by 2030. The plan shows how Norway will achieve its climate target and at the same time create green growth.

"Under this Government, Norway has reduced its greenhouse gas emissions, and this progress will continue. This climate action plan will give new momentum to Norwegian climate policy. For the first time, a government is putting forward a compelling, comprehensive plan for cutting emissions in every sector. We must make sure that it pays to cut greenhouse gas emissions," said Minister of Climate and Environment Sveinung Rotevatn.  

The main emphasis of the climate action plan is on emissions that are not included in the Emissions Trading System, or non-ETS emissions. These include emissions from transport, waste, agriculture and buildings, and some emissions from industrial production and the oil and gas industry. It also deals with the EU Emissions Trading System, which applies to the bulk of emissions from industrial production and the oil and gas industry. In addition, the action plan discusses CO2 removals and emissions in the land-use, land-use change and forestry (LULUCF) sector.    

"This action plan will enable us to exceed Norway’s assigned target from the EU for non-ETS emissions, which is 40 %, and we will achieve this through domestic emission cuts,"said Mr Rotevatn.

-This climate action plan will give new momentum to Norwegian climate policy, says Sveinung Rotevatn, Minister of Climate- and Environment. Credit: Martin Lerberg Fossum/KLD

The main policy instruments in the climate action plan are taxation of greenhouse gas emissions, regulatory measures, climate-related requirements in public procurement processes, information on climate-friendly options, financial support for the development of new technology, and initiatives to promote research and innovation.

The Government intends to make greater use of climate-related requirements in public procurement processes. Requirements for zero-emission solutions will be introduced for passenger cars and small vans in 2022, and for local buses from 2025. Criteria relating to low- or zero-emission solutions will also be introduced for ferry services and high-speed passenger vessel services.    

The sales volume of biofuels for road traffic will be maintained to ensure cuts in emissions from the fossil vehicles that are still in use. The Government will introduce biofuel quota obligations for offroad diesel and fuel for shipping from 2022. Vehicle taxes and other policy instruments will be designed so that they continue to provide incentives to choose zero-emission vehicles.    

Enova has been given a clearer climate profile, so that it will contribute towards Norway’s emission reduction commitment for non-ETS emissions and Norway’s transition to a low-emission society.  

The Government will use the letter of intent it has signed with the agricultural organisations as a basis for climate-related work in this sector in the years ahead.    

The white paper also announces a gradual increase in the carbon tax rate from its current level of about NOK 590 to NOK 2000 per tonne CO2 equivalents in 2030. This will progressively increase the cost of emitting CO2 and give stronger incentives to reduce emissions. The Government’s policy is not to increase the overall level of taxation. Any tax increase will therefore be offset by reducing other taxes correspondingly.    

"Climate policy is the sum of all our efforts - how we transform Norway and equip the country for the future. We will cut emissions and enhance removals of CO2 in a way that transforms Norway and promotes green growth. To achieve this, we need an industrial sector that is greener, smarter and more innovative,"said Prime Minister Erna Solberg. 

"The Government is presenting an action plan for achieving Norway’s climate target for 2030. We will continue to reduce Norway’s greenhouse gas emissions, and shape a society that will provide jobs for the future. This will offer freedom and opportunities for everyone," said Minister of Education and Integration Guri Melby.

"We all have a responsibility for each other, for the poorest people in the world and for future generations. The climate action plan will contribute to an equitable transformation process, so that Norway takes its share of the responsibility," said Minister of Children and Families Kjell Ingolf Ropstad. 

EU climate legislation

EU climate legislation 

Norway has entered into an agreement with the EU to take part in EU climate legislation in the period 2012–2030. This consists of three pieces of legislation:

  • The Effort Sharing Regulation for non-ETS emissions: this assigns each country a binding target for reducing emissions from transport, buildings, agriculture, waste, and some emissions from the oil and gas industry and industrial production. Under the current regulation, overall emissions in the non-ETS sector in the EU are to be reduced by 30 % by 2030. Norway’s national target is an emissions cut of 40 %, either in Norway or in other European countries.
  • The land-use, land-use change and forestry (LULUCF) regulation: the regulation sets out accounting rules for uptake and removals of CO2 in the LULUCF sector. The legislation sets out an obligation to ensure that overall greenhouse gas emissions from land use and forestry do not exceed removals (this is known as the ‘no-debit’ rule).
  • The EU Emissions Trading System (EU ETS) applies to installations in manufacturing, the petroleum industry, power and heat generation and domestic aviation. There is a cap on the total volume of greenhouse gas emissions that may be emitted. Installations can trade emission allowances with each other within the system. The cap, or number of allowances, is being reduced gradually so that total emissions fall over time. Under the current legislation, emissions are to be reduced by 43 % by 2030.

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