sa-04x02

1. This course is prepared under the Erasmus+ KA-210-YOU Project titled
«Skilling Youth for the Next Generation Air Transport Management»
Sustainability
Management in Aviation
Environmental dimension – Global warming – Part II
Prof. Dr. Frank Fichert
Worms University of Applied Sciences

2. Several instruments have been implemented and many more are being
discussed.
Different options for classification, esp.
Command and control / incentives / ETS
National vs. international implementation
Operations vs. technology
…
Global warming – Part II 2
Instruments

3. • Standards for CO2 emissions since 2020 (new type certification)
• Newly built aircraft have to comply from 2023 onwards (if modifications
lead to re-certification)
• 2028: Ban on production of aircraft not complying with the standard (even
without re-certification)
• Maximum fuel burn per flight kilometer during cruise (begin, middle and
end of cruise phase) – based on ‚transport capability’ (payload and range)
=> very complex metric
• Limited effect, only newly built aircraft are affected – and standards are not
very ‘ambitious’
Global warming – Part II 3
ICAO Annex 16 Vol. III

4. • ICAO Resolution A39-3
• Aim: Carbon Neutral Growth (CNG) from 2020
• Use of Global Market Based Measures (GMBM)
• Basic idea:
Compensation of additional emissions above 85% of the 2019 level (after 2024)
(i.e. financing projects for CO2 emissions reduction elsewhere, e.g. ‘planting trees’)
• Three phases:
2021-2023: Pilot phase
2024-2026: Phase I
2027-2035: Phase II
• CORSIA only covers international flights between participating countries
• Until 2027 voluntary participation – currently more than 100 states – around 80% of
international air traffic (as of 2023 – missing: China, India, Russia)
Global warming – Part II 4
CORSIA - Carbon Offsetting and Reduction
Scheme for International Aviation

5. • From 2027 mandatory participation, if airlines registered in a country provide
more than 0.5% of international air transport.
If less than 90% of total emissions (base year 2018) is covered,
additional countries are included (based on share of emissions).
Several exemptions for (landlocked) and least developed countries.
• Each airline has to compensate, in pilot phase and phase I based on sector
growth of emissions. In phase II the compensation requirements are based on
sector growth and airline specific growth (with increasing share of airline specific
growth). New airlines are exempted for the first three years after their entry.
• Emissions have to be reported, compensation projects have to be certified.
Global warming – Part II 5
CORSIA - Carbon Offsetting and Reduction
Scheme for International Aviation

6. • Controversial debate about CORSIA
• Only growth of air traffic is covered (i.e. not the remaining 85% of the emissions in
the base year) and only emissions on international flights are compensated
• ‘Sustainability’ of offsets?
Compensation projects need to be additional and permanent
• Due to COVID 19 effect – in 2022 emissions below 2019 level – no compensation
Global warming – Part II 6
CORSIA - Carbon Offsetting and Reduction
Scheme for International Aviation

7. • Principles of ETS – see slides 02-07
• EU introduced ETS in 2005 (covers large installations, e.g. electricity
generation, manufacturing of paper, glass, etc.)
• Since 2012 air transport emissions included into ETS:
originally EU wanted to include all flights to or from EU (e.g. JFK-LHR
and FRA-PEK), but strong opposition from countries like USA and PRC
=> only Intra-EU flights (domestic and cross-border) are covered
• Large (but decreasing) share of allowances allocated for free
• If air transport emissions grow, airlines have to purchase allowances from
other sectors (thereby leading to emissions reductions elsewhere)
Global warming – Part II 7
EU emissions trading scheme

8. • From the airline perspective, ETS leads to an increase in fuel costs
(as they have to purchase allowances based on fuel burn)
• Since 2021, strong increase in price of allowances (mainly due to reduced
supply), in 2023 prices were around 90 Euro per ton of CO2 emissions
• Some competition issues (leading also to ‘carbon leakage’),
esp. transfer flights via EU hub vs. Non-EU hub
(e.g. DUB-FRA-PEK: DUB-FRA covered by ETS vs.
DUB-IST-PEK: not covered by ETS)
Global warming – Part II 8
EU emissions trading scheme

9. • Many (EU) countries levy ‘ticket taxes’ (‘passenger taxes’, etc.),
environmental NGOs argue in favor of higher taxes (VAT, fuel tax, etc.).
Higher fares reduce demand (all else equal) – either modal shift (high
speed rail (HSR) instead of air transport) or people ‘stay at home’
• In France prohibition of selected domestic flights (if HSR available)
• However:
At least for Intra-EU flights no net reduction of CO2 emissions:
If there are less flights, airlines have to purchase less allowances from
other sectors, i.e. higher emissions elsewhere (‘waterbed effect’)
Global warming – Part II 9
Tickets taxes, flight bans, etc.

10. • Sustainable aviation fuel – with less (net) CO2 emissions per unit of fuel
burn (e.g. ‘biofuels’ or ‘e-fuels’)
• Currently low production and high prices for SAF, therefore also low
demand (‘hen-egg-problem’)
• EU: Airlines have to purchase a certain share of SAF (starting at 2% and
increasing over time)
• Cost increase for airlines – Danger of ‘tankering’, i.e. on flights between
EU and Non-EU airports airlines might purchase additional fuel at airports
outside EU (esp. if short distance like BEG-VIE or IST-ATH)
• EU tries to prevent ‘tankering’, airlines will be obliged to purchase
minimum share of fuel at EU airports (90%)
Global warming – Part II 10
EU SAF mandate

11. • Several instruments lead to higher fuel costs (direct or indirect effect) –
incentive for airlines to increase fuel efficiency – but also reduced demand
for air transport if cost increase is (at least partially) passed on to the
passenger
• Complex interdependencies between instruments, e.g.
• ‘Waterbed effect’ if flight is covered by ETS and additional instruments are used
• Some flights covered by ETS, others only by CORSIA – with some options for ‘carbon leakages’
• Task: Compare statements of different stakeholders in one country (e.g.
airline association, environmental NGO, government of your home
country) with respect to CORSIA and ETS (if applicable).
Global warming – Part II 11
Some conclusions
=> Sust M 04-01 provides some links to statements from selected stakeholders.
Please then continue with video/slides ‘Sust S/V 05-01’