The reduction of emissions in the aviation sector is a true challenge. The global aviation targets of neutral emissions growth from 2020 and a 50% reduction by 2050 over 2005 levels (set by the IATA), are further complicated by a growth in the sector generally as passenger numbers double and runway capacity increases. There are four key "strategies" for achieving these targets:
Further to our briefing dated 31 October 2016 on the historic ICAO agreement to curb aviation emissions, we set out in a brief update on that agreement and the EU Emissions Trading System (EU ETS) as it applies to aviation, as well as a short consideration of moves in the UK to encourage the production and use of sustainable aviation fuel.
Market-based measures
Following ICAO's adoption of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) on 6 October 2016, the European Commission published a proposal on 3 February 2017 which envisages continuing with the current approach for aviation under the EU ETS from 2017 to 2021. This means that intercontinental flights departing from or landing in the EU would continue to be exempt from the EU ETS.
It is not yet clear how many of the elements of CORSIA will work in practice. ICAO is currently developing a monitoring, reporting and verification system, as well as criteria for emissions units and emissions registries in time for 2021. Furthermore, we are yet to find out how compliance and civil sanctions will be measured and enforced from 2021, or how non-CO2 emissions from aviation which are currently excluded from CORSIA will be regulated.
The Commission proposes to carry out a review once there is more certainty about the implementation and scope of CORSIA. In the meantime, any ETS amendment must be in force by 30 April 2018, with any new regulation applying retrospectively to emissions from 1 January 2017. The Commission's proposal is still being debated at the European Parliament.
Sustainable Aviation Fuel
There are barriers to the introduction of sustainable aviation fuel. These include the higher cost of the fuel and development of production plants. Industry is calling for long-term policy commitment and support from government – both in the form of subsidies for production of sustainable fuel and rewards for its use. In return, there should not only be a reduction in aviation emissions but also economic advantages from an increase in jobs and revenue through production of the fuel.
In the UK for instance, the Government recognises that aviation is a difficult sector to decarbonise and seems generally supportive of sustainable aviation fuel. There appear to be two main initiatives:
It is clear that market mechanisms are being favoured by both governments and the aviation sector itself as a means to limit and then reduce aviation emissions. However, such mechanisms are not straightforward and there are many complexities associated with monitoring, reporting, enforcement, etc. – it is difficult to implement an effective and fair system. Additional strategies (including sustainable fuels and improvements in aircraft and operating procedures) are essential if industry targets for greenhouse gas emissions reductions are to be met. We will keep you updated as industry and others seek to overcome the carbon challenges faced by the aviation sector.