Aviation and Sustainability

Chapter 13 - Aviation's Role in Reducing Global Carbon Emissions

Policy Goal

Ensure the Australian aviation industry plays an effective role in the reduction of aviation's contribution to climate change.

Background

All forms of transport - air, rail, road and sea - contribute an estimated total of 13 per cent to global greenhouse gas emissions.⁴¹ Civil aviation contributes about two per cent of global carbon dioxide (CO₂) emissions. In recent decades aviation activity has grown at approximately five per cent per year. Over this time, the aviation industry has progressively introduced fuel saving measures which have delivered efficiency gains of about two per cent per year. Consequently, the carbon footprint of aviation has been growing at a rate of about three per cent per year. While recent demand for aviation has been significantly impacted by the global financial crisis, history shows the aviation industry is resilient and quick to bounce back after a downturn. Unless appropriate action is taken, the net carbon footprint of aviation will continue to grow. Leaders of the G8 countries have identified the need for at least a 50 per cent reduction in total global emissions by 2050.

The airline industry has always had strong incentives to improve fuel efficiency, with consequential improvements in emissions intensity. The International Air Transport Association (IATA) estimates that new aircraft are 70 per cent more fuel efficient than 40 years ago and 20 per cent better than 10 years ago. According to IATA, airlines are aiming for a 25 per cent fuel efficiency improvement across the system by 2020 compared to 2005 levels.

In the area of air traffic control, Australia's air navigation service provider, Airservices Australia, has introduced a number of operational procedures which reduce CO₂ emissions for individual flights. These include the use of flexible flight tracks, improving aircraft air traffic control sequencing, and using continuous descent approaches to runways. The Asia and Pacific Initiative to Reduce Emissions (ASPIRE) Partnership involves the air navigation service providers of Australia, the United States, New Zealand and Japan working closely together to improve efficiencies on key Asian and Pacific routes. To trial the various fuel efficiency measures, four test flights between the US and Australia/New Zealand/Japan have been undertaken by Air New Zealand, JAL, Qantas and United Airlines, with positive results.

Australian airlines are introducing new more fuel-efficient aircraft. The latest generation models of the Boeing 737 aircraft, an aircraft type in common use on domestic routes throughout Australia, are about 20 per cent more fuel-efficient than the earlier B737 models they are replacing. Australian airlines are among the first operators in the world to introduce the latest major new aircraft types - the Airbus A380 which came into service with Qantas in 2008 and the Boeing B787 which is due to commence operations in Australia in 2013.

Qantas, Jetstar and Virgin Blue have introduced voluntary carbon offset schemes which are designed to reduce the industry's net carbon footprint by enabling individuals to purchase carbon offsets for their flights. Jetstar and Virgin have reported more than 10 per cent of passengers buying offsets - a figure that is high by international standards.

Consistent with its 2007 election commitment, the Australian Government is working to develop Carbon Offsets Standards for the generation and sale of voluntary carbon credits outside of the Carbon Pollution Reduction Scheme. These will build consumer confidence in voluntary carbon offset products.

Australia's airports are putting in place a range of measures to manage their contribution to climate change issues. In particular, programs include green star rated commercial developments on airport, use of alternate energy sources carbon accounting, energy and water audits, recycling, sustainable water management and the creation of biodiversity zones.

Under the United Nations Framework Convention on Climate Change (UNFCCC), international and domestic aviation are treated separately. Domestic aviation emissions are counted as part of country targets. International aviation is dealt with separately by the International Civil Aviation Organization (ICAO) because no agreement was reached within the UNFCCC on how CO₂ emissions from an international flight should be ascribed to individual countries.

For Australia in 2008, about 40 per cent of emissions related to domestic aviation and 60 per cent to international aviation, based on fuel sales data for each category.

Policy Issues

Along with other major world economies, the Australian Government is committed to addressing climate change and recognises the scientific view that the increase in global average temperature above pre-industrialised levels should not exceed 2°C. This involves setting a path to stabilise greenhouse gas emissions concentrations at 450 parts per million CO₂-equivalent or less. Achieving this in practice means that global emissions need to peak as soon as possible and decline thereafter. Every sector, including aviation, must therefore play its full and fair part.

A key pillar of the Government's policy on climate change is a commitment to reduce Australia's greenhouse emissions by 60 per cent of 2000 levels by 2050. Part of the Government's strategy for achieving this goal is the Carbon Pollution Reduction Scheme (CPRS), an economy-wide scheme for capping and trading emissions. Legislation to establish the CPRS will be re-introduced to the Parliament in 2010.

Domestic emissions

The Government confirmed in its White Paper on the proposed CPRS released in December 2008 that domestic aviation emissions will be included in the scheme.

As a precursor to the CPRS, the National Greenhouse and Energy Reporting Act 2007 (the NGER Act) introduced a single national framework for the reporting and dissemination of information about greenhouse gas emissions, greenhouse gas projects, and energy use and production by corporations. The first annual reporting period began on 1 July 2008. The NGER Act will underpin the CPRS, providing the emissions data on which obligations under the CPRS will be based. The NGER legislation will require amendments to allow for reporting under the CPRS.

Responsibility for the purchase and acqsuittal of permits under the CPRS will rest with the body that provides the fuel or is directly responsible for the emissions. For example, airlines will be required to pay, either directly or indirectly, for the carbon costs associated with the fuel they use.

While payment of carbon charges through the CPRS will be the core strategy in the management of domestic aviation emissions, it is likely that there will be increasing public expectation for the key players in the industry - airlines, air navigation service providers and airports - to publicly report on the actions they are taking to manage their carbon footprints. It is therefore important that the industry make efforts to meet community expectations through initiatives such as developing and publishing carbon management action plans and having in place associated transparent reporting regimes which demonstrate trends in the size of carbon footprints.

International Emissions

The Australian Government believes the emissions from international aviation activity, like all sectors, need to be effectively covered by global climate change action. The international aviation sector is globally integrated and operates as a highly competitive market with carriers from a range of countries operating across interconnected networks. Efforts to address emissions will require a concerted global effort without discrimination on the basis of place of origin or destination of passengers or cargo, or the national origin of the carrier.

During 2008 and 2009, Australia along with fourteen other Member States of ICAO actively participated in the ICAO Group on International Aviation and Climate Change that was charged with developing a program of action for the reduction of international aviation carbon emissions. An initial program, supported by all participating States, was presented to ICAO in June 2009 and endorsed by a high level meeting of all Member States in October 2009.

A key element of the program is an agreement by Member States to work through ICAO to achieve a global goal of a fuel efficiency improvement of 2 per cent per annum until 2050. The global fuel efficiency goal imposes no specific obligations on individual Member States and it will be up to each State to determine its contribution based on its circumstances and respective capabilities.

The ICAO high level meeting recognised that a 2 per cent annual fuel efficiency improvement is unlikely to deliver the level of emissions reduction necessary to stabilise and then reduce aviation's contribution to climate change, and that more ambitious goals will need to be considered to deliver a sustainable long-term path for aviation. The high level meeting also agreed further actions to address emissions from international aviation in the lead up to the ICAO Assembly in 2010 and beyond. This includes further work on medium and long-term goals, the development of a framework for market-based measures and encouraging the development of action plans by Member States. The Government will ensure that Australia remains fully engaged in ICAO's work and plays an active and constructive role in working towards a more comprehensive strategy that is effective in addressing emissions from international aviation without unduly restricting international aviation operations.

The consideration of emissions issues in ICAO has been constrained by the need to reconcile the UNFCCC principle of 'common but differentiated responsibilities and respective capabilities' (CBDR) of countries and the ICAO Chicago Convention principle of non-discrimination and equal and fair opportunities among air carriers. Based on the CBDR principle, developing countries expect developed (Annex 1) countries to take the lead in addressing emissions from international aviation and some have resisted any proposal that would involve obligations on their carriers. This raises issues of competitive distortion given that a number of the top ten international air carriers are from non-Annex 1 countries.

For this reason Australia has proposed that the UNFCCC set indicative global emissions reduction targets for the international aviation sector, and to help meet these targets, that new global agreements be negotiated under the UNFCCC. ICAO would maintain a strong role in delivering on these sectoral agreements.

Improving Efficiency Through New Technology

Air Traffic Management

To help reduce aviation carbon emissions, Airservices Australia will continue to work with airlines to implement fuel saving measures on individual flights. This includes working in consultation with the community, expert advisors Naverus, and other stakeholders, to develop Required Navigation Performance procedures (a form of Performance Based Navigation) for arrival and departure flight paths at up to 28 major Australian airports over the next five years. Based on the flight trial experience at Brisbane, these procedures have the potential for a reduction of 122,000 tonnes of CO2 emissions, and a saving of 39,000 tonnes of fuel, per year - an efficiency gain of approximately one per cent.

Airservices Australia will also work with airport owners to ensure that emissions savings - particularly from long haul flights - are not lost in lengthy holding patterns and tarmac delays at busy airports.

To date, four test flights between the US and Australia/New Zealand/Japan have been undertaken by Air New Zealand, Qantas, JAL and United Airlines under the ASPIRE program. These flights demonstrated how significant savings in time, fuel and emissions can be achieved through greater collaboration among air navigation service providers. Further initiatives are planned including the involvement of more air navigation service providers in the Asia region.

Airport Operations and Infrastructure Improvement

Activities directly under the control of airport operators are not a major source of aviation emissions, but even these emissions can be reduced by more energy-efficient designs for airport buildings and by airports switching to alternative lower carbon fuels where possible. Airport operators do have a key role to play in working with aircraft operators and air navigation service providers to improve the efficiency of gate to gate operations. Airports will be strongly encouraged to take a cooperative role in helping to achieve these efficiencies.

This process has already begun with some airports moving to establish programs such as green star rated commercial developments on airport, use of alternate energy sources (such as tri-gen and solar plants), carbon accounting, energy and water audits, recycling, sustainable water management and the creation of bio diversity zones. The Government will encourage airports to include Carbon Reduction Strategies in future Airport Environment Strategies. Further, Airport Environment Strategies will be required to form part of the airport's Master Plan, ensuring environmental planning is incorporated into the primary planning tool for the airport.

Biofuels

Biofuels are being examined for their potential to make an important contribution to reducing the net carbon footprint of aircraft operations. Over the past year, a number of trials have demonstrated that biofuels can safely and effectively be used to fuel aircraft. The air transport industry is expecting that a new jet fuel will be certified before 2011. However, at the present time there is great uncertainty over the availability, commercial viability and timing of introduction of these alternative aviation fuels. In particular the environmental and social acceptability of these fuels will need to be clearly demonstrated before they can be accepted for widespread use.

The Australian Government recognises the importance of developing sustainable aviation fuels. Significant research, development and demonstration efforts are taking place around the world to develop sustainable jet fuel. While there are no specific programs in Australia targeted at the development of sustainable aviation biofuels, the Government's second generation biofuels research and development program (Gen 2) is aimed at encouraging the development of sustainable transport fuels, including aviation fuels.

Balancing Management of Aircraft Noise with Carbon Emission Reduction Initiatives

New air traffic management procedures designed to increase aircraft operational efficiency and reduce emissions may have implications for the management of aircraft noise and noise sharing. These new navigational capabilities often involve introducing changes to existing flight paths which have been designed to minimise noise impacts. Historically, noise abatement procedures have generally been implemented fully recognising that they will require aircraft to travel greater distances (for instance, to fly around rather than over a community), resulting in the burning of more fuel and increases in emissions. However, some procedures, like continuous descent approaches, have the potential to deliver both fuel burn and noise benefits.

The Government is committed to ensuring a fair balance is maintained between aircraft noise and emissions. To this end the Government will:

require consultation with affected communities on proposed new fuel saving procedures with likely adverse noise impacts;
demand rigorous analysis of any noise/emissions trade-offs in environmental assessment processes; and
continue to monitor research in this area working through the ICAO Committee on Aviation Environmental Protection (CAEP) to establish approaches which provide for acceptable tradeoffs between the two competing forms of pollution.

Monitoring and Reporting the Nation's Aviation Carbon Footprint

Robust transparent carbon footprint reporting for aviation is essential if the industry is to publicly demonstrate that it is making its proper contribution to managing climate change and to clearly show the progress it is making toward achieving emission targets.

In order to generate transparent carbon footprint reports, and to underpin environmental analysis and assessment, the Government is developing a widely accessible tool for carrying out carbon footprinting of aviation. This tool builds on the internationally recognised ICAO Carbon Calculator. Anticipated specific applications of the tool include:

regular reporting of trends in total carbon emissions and in the efficiency of the Australian network;
carbon footprint assessment in Environmental Impact Assessment processes;
computation of voluntary personal and corporate offsetting; and
provision of advice on route specific carbon charges.

The tool will also allow separate computation of domestic and international CO₂ emissions to facilitate disaggregated reporting. It is anticipated that in future all ICAO Member States will be required to submit carbon footprint reports to ICAO on a regular basis as part of agreements on the management of emissions from international aviation.

Conclusion

Aviation contributes two per cent of total global greenhouse gas emissions but this contribution is growing. Action needs to be taken to ensure the aviation industry's growth is sustainable and its contribution towards global climate change is minimised.

The Australian Government has demonstrated its commitment to addressing climate change, especially through Carbon Pollution Reduction Scheme (CPRS) legislation in which the domestic aviation industry will be included. The Government will pursue the CPRS legislation in 2010.

The Government will also:

continue to work through ICAO and other forums to ensure measures to address carbon emissions from international aviation are non-discriminatory and do not disproportionately affect Australia's international airlines;
press ahead with the application of improved air traffic management technology and enhanced operational procedures to optimise the efficiency of aircraft operations to and from Australia and in Australian airspace;
establish a regime which facilitates improvements to airport operations and infrastructure and gate-to-gate efficiencies; and
ensure that a robust transparent regime for monitoring, assessing and reporting aviation carbon footprints is implemented.

International Panel on Climate Change, 4th Assessment Report 2007, Technical Summary

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