Aviation Sustainability and the Environment, CAPA 31-Jan-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.

IATA and XCHG to launch first airline carbon credit exchange

Xpansiv CBL Holding Group (XCHG) and IATA announced (30-Jan-2020) a partnership to develop the Aviation Carbon Exchange (ACE).

The exchange is intended to offer a new and innovative avenue for airlines to meet their emissions-reduction commitments under the Carbon Offset Reduction Scheme for International Aviation (CORSIA). ACE will serve as a centralised marketplace for CORSIA eligible emission units, providing a secure, intuitive destination for airlines to access real-time data with full price transparency. CBL Markets, an XCHG company, and IATA plan to launch a trial during 1Q2020 with airlines that want to start offsetting voluntary credits as a pilot phase.

IATA Director Aviation Environment Michael Gill stated: "It will be open and accessible to everyone, whether a buyer or seller. ACE will ensure that carbon offsets are competitively priced, with the goal of lowering compliance costs and increasing confidence by ensuring that only high-quality, verified offsetting credits are available". [more - original PR]

SAS reports results of 'materiality analysis'

SAS announced (30-Jan-2020) the following topics remain of most interest for SAS and its stakeholders, according to the carrier's materiality analysis conducted in 2019:

• Environment:
  • Emissions;
  • Waste;
  • Noise;
• Employees:
  • Diversity and equality;
  • Work conditions;
• Responsible business:
  • Business ethics and anticorruption;
  • Sustainability in the supply chain. [more - original PR]

SAS CEO: Economic outlook continues to be uncertain

SAS CEO Rickard Gustafson reported (30-Jan-2020) SAS' economic outlook continues to be uncertain and a slowdown in key economies would impact customer demand negatively, with continued weakness of the Swedish krona and Norwegian krone against the US dollar and the euro remaining a challenge.

SAS expects capacity growth will be lower in the coming years, with customer demand also expected to slow down. Mr Gustafson stated SAS is "also mindful of the increased customer awareness of aviation's impact on the environment". [more - original PR]

SAS unveils FY2019 sustainability highlights, biofuel usage increases by 355 tonnes

SAS reported (30-Jan-2020) the following sustainability highlights in FY2019:

• Launched a new breakfast box with lower plastic content. Fossil based plastic was also removed;
• Removal of onboard sales to reduce weight;
• 80% of SAS flights can now recycle aluminium cans;
• New intelligent catering loading system to minimise emissions;
• Carbon offsetting for all EuroBonus passengers;
• Involved in several initiatives and projects to push for large scale commercial production of biofuel in Scandinavia. SAS together with Swedavia and the research institute RISE launched a common path towards increased production of biofuels;
• Biofuel increase of 355 tonnes to 455 tonnes;
• Introduction of biofuel as an ancillary benefit. [more - original PR]

Delta Air Lines signs offtake agreement with NWABF to purchase sustainable fuel

Delta Air Lines signed (30-Jan-2020) an offtake agreement with Northwest Advanced Bio-Fuels (NWABF) to purchase sustainable aviation fuel that may be produced by NWABF towards the end of 2024.

Advanced planning study of the fuel production will be completed later in 2020. The carrier previously signed an offtake agreement with Gevo for biofuel production as well, which is expected to become available between 2022 and 2023. [more - original PR]

AirAsia implements OptiClimb solution to reduce carbon footprint

AirAsia implemented (30-Jan-2020) an OptiClimb solution, using historical flight data and AI to predict fuel burn in different scenarios to recommend optimal climb speeds to pilots for each flight. The technology assesses individual aircraft performance and accurate 4D weather forecasts and is expected to save up to 3% of climb fuel. It could potentially represent a fleetwide carbon footprint reduction of at least 73,000 tons of CO2 per year. [more - original PR]

easyJet partner Wright Electric begins engine development programme for 186 seat electric aircraft

easyJet welcomed (31-Jan-2020) the announcement by Wright Electric of the commencement of an engine development programme for a 186 seat electric aircraft, named Wright 1. Details include:

• Wright Electric will build a 1.5MW electric motor and inverter, as the basis for the Wright 1 aircraft powerplant;
• Wright commenced discussions with BAE Systems relating to flight controls and energy management systems. Wright intends to conduct ground tests of its motor in 2021 and flight tests in 2023;
• Wright will be conducting aerodynamic tests on its fuselage, which will inform the propulsion design. The company expects entry of service of its flagship Wright 1 in 2030;
• A number of government agencies in the US are aiding research by providing funding into electric aviation including NASA and Air Force Research Laboratory.

easyJet CEO Johan Lundgren commented: "Battery technology is advancing at pace with numerous US government agencies now funding research into electric aviation - all of these developments help us to more clearly see a future of more sustainable operations. We know it is important to our customers that we operate as sustainably as possible". [more - original PR]

Seoul Incheon Airport aims to achieve zero airside emissions by 2030

Incheon International Airport Corporation (IIAC) reportedly signed an agreement with five ground handling operators, including Swissport Korea and Sharp Aviation K, to achieve zero greenhouse gas emissions at Seoul Incheon International Airport's airside area by 2030 (Yonhap News/Yeongjong News/Homeland Daily News, 30-Jan-2020). IIAC plans to replace approximately 1000 diesel powered ground vehicles at Seoul Incheon with environmentally friendly vehicles by 2030.

AWG establishes working group on ESG and aviation finance

Aviation Working Group (AWG) announced (Jan-2020) it established a working group to assess, provide information, and potentially take action on environmental, social and governance (ESG) issues geared to the context of aviation financing and leasing.

The foregoing may include the development of metrics, methods, emissions (and CORSIA-related liability) tracking, reporting and documentation and/or principles geared to the context of aviation financing and leasing. AWG has retained Clifford Chance and Watson Farley Williams as co-counsel to advise and support its work on ESG. [more - original PR]

A4A applauds publication of new SAF specification

Airlines for America (A4A) applauded (30-Jan-2020) the approval and publication of a new sustainable aviation fuel (SAF) specification by ASTM International.

The new specification establishes criteria for the production and utilisation of catalytic hydrothermolysis jet fuel, allowing for the fuel to blended at up to 50% by volume with conventional jet fuel. A4A VP for environmental affairs Nancy Young called the development and deployment of SAFs a "critical part of the US airline industry's continuing commitment to reducing our carbon emissions". [more - original PR]

ADS Group president outlines three key focus areas for 2020

ADS Group president and Meggitt CEO Tony Wood, speaking at the 2020 ADS Annual Dinner, said (23-Jan-2020) in his role as president he will be focusing on the following "three key issues that we face as an industry":

• Industrial strategy & innovation. Mr Wood said 2020 "is the time to step up to new challenges" and ADS needs the Government to "continue working with us" and build on the Aerospace Industrial Strategy as well as developing new defence and space programmes;
• Sustainability. Mr Wood said achieving sustainable aviation will be the "defining challenge of the next decade and probably decades to come and we're driving the solution". He noted the industry "has made real progress in improving efficiency, but with demand for air travel growing, we require urgent solutions". There are there are three elements to the aviation industry's strategy:
  • Continued improvement of the planes that we fly and the way that we fly them;
  • Accelerating the commercial availability of sustainable aviation fuel;
  • Development of radically new and efficient aircraft;
• Skills. Mr Wood said it is "imperative that we attract the very best of the next generation of talent through being the best companies to work for in terms of training and development, working environment, social responsibility and equality of opportunity". [more - original PR]