HCLT Whitepaper: A Solution for Aviation Emissions Reporting and Compliance to EU-ETS

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http://www.hcltech.com/aerospace-and-defense/overview~ for more on Aerospace

Climate change is a critical environmental issue gaining importance across
the globe. Governments are making considerable efforts to control the
impact of climate change by implementing appropriate environmental
measures. Today, there is a visible shift in the focus of organizations
towards sustainability development as part of corporate social
responsibility. In the light of worldwide contributions and efforts to
combat climate change and emission control, the aviation industry
assumes a lot of significance due to the nature of direct emissions into the
atmosphere caused by air travel. The entire aviation community
comprising of aircraft operators, aircraft manufacturers, fuel suppliers,
airport operators and air navigation service providers, is expending
considerable efforts in containing the level of atmospheric emissions.
Aircraft operators in particular are seeking to adopt measures to monitor,
report and verify the level of their emissions. Such measures can also be
attributed to the need for brand management, the worldwide cause for
green; or simply a need to comply with increasingly stringent
requirements being enforced through various mandates worldwide.

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HCLT Whitepaper: A Solution for Aviation Emissions Reporting and Compliance to EU-ETS

  1. 1. GreenSky A Solution for Aviation EmissionsReporting and Compliance to EU-ETS
  2. 2. 2GreenSky: A Solution for Aviation Emissions Reporting and Compliance to EU-ETSOverviewClimate change is a critical environmental issue gaining importance acrossthe globe. Governments are making considerable efforts to control theimpact of climate change by implementing appropriate environmentalmeasures. Today, there is a visible shift in the focus of organizationstowards sustainability development as part of corporate socialresponsibility. In the light of worldwide contributions and efforts tocombat climate change and emission control, the aviation industryassumes a lot of significance due to the nature of direct emissions into theatmosphere caused by air travel. The entire aviation communitycomprising of aircraft operators, aircraft manufacturers, fuel suppliers,airport operators and air navigation service providers, is expendingconsiderable efforts in containing the level of atmospheric emissions.Aircraft operators in particular are seeking to adopt measures to monitor,report and verify the level of their emissions. Such measures can also beattributed to the need for brand management, the worldwide cause forgreen; or simply a need to comply with increasingly stringentrequirements being enforced through various mandates worldwide.The case for Aviation ComplianceThe European Union Emissions Trading System (EU ETS) is a measureundertaken by the European Union (EU) to reduce CO2 emissions byallowing a certain amount of CO2 to be emitted or produced per year. TheEuropean Commission considers aviation as one of the important sectorsto reduce carbon emissions. Hence, in order to mitigate the climateimpact, the commission has introduced a legislation to include aviationunder the purview of EU ETS [1]. The scheme covers any aircraftoperator, whether EU or foreign-based, operating international flights onroutes to, from or between EU airports [2]. Very light aircraft, military,police, customs and rescue flights, flights on state and governmentbusiness and training or testing flights have been exempted [2].This paper seeks to provide an automated solution approach to theaviation industry, specifically aircraft operators, to monitor and reportcarbon emissions in order to comply with EU ETS norms.© 2011, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  3. 3. 3GreenSky: A Solution for Aviation Emissions Reporting and Compliance to EU-ETSAviation Carbon Emission Reporting ProcessAircraft operators who wish to apply for free allowances must submittheir monitoring plan. The monitoring plan will outline the measurestaken to monitor and report tonne-kilometer data and emission data foreach flight, which will then be checked and approved by the competentauthority. In accordance with the monitoring plan, aircraft operators needto Monitor Report & Verify (MRV) the tonne-kilometer and carbonemission data for each flight and generate the aggregated data forreporting. Once the aggregated data is available, the aircraft operatorneeds to contact the accredited verifier, approved by regulators, to verifythe accuracy and correctness of the report. The verified tonne-kilometerand emission report needs to be submitted to the competent authority oftheir administering member state for free allowances. Monitoring Reporting VerificationChallenges in Airline IT Process Automation toAccommodate EU ETS RequirementsThe aviation industry today, while recognizing the need for monitoring,reporting and verification of their emissions, faces some ground realitiesfrom the perspective of their IT systems and their ability to accommodatestringent auditing and reporting requirements. Some of these challengescan be described as under:?Complex IT landscape with disparate systems that makes it difficult to unify data requirements across systems.?Heterogeneous fleets that cause issues with data access and fuel gauge accuracy.?Cumbersome and error-prone processes for data collection, processing and reporting.?Comprehensive needs for maintenance of audit trails with supporting information and documentation.? archiving requirements. Data© 2011, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  4. 4. 4GreenSky: A Solution for Aviation Emissions Reporting and Compliance to EU-ETSHCL’s GreenSky SolutionAn automated monitoring, reporting and pre-verification solutionfor airlines.With strong domain expertise in carbon reporting, innovative greensolutions and offerings across verticals, HCL presents an end-to-endsolution -- ‘GreenSky’ -- for automating EU ETS aviation compliance andreporting. Through this solution, HCL brings a combination of aviationEU ETS expertise, a comprehensive solution framework and a rapiddeployment methodology for airlines to achieve the most effective meansof compliance.Figure 1 below depicts a high level overview of the timelines involved incompliance to EU ETS, and how the industry is adopting measures tocomply with the same. Submit Submit Submit Submit TK Monitor Each Member State verified verified verified and TK and will publish the TK and TK and TK and emissions emissions allocation emissions emissions emissions Monitoring allowances to each report for report for report for Plan operator 2010 2011 2012 Adoption of technology Aug Jan Mar Dec Mar Mar 2009 2010 2011 2011 2012 2013 Exploration Assessment & Decision Making TK – Tonne Kilometer Evaluation HCL Proprietary & Confidential Figure 1GreenSky Solution Framework Diagram Airline Systems EU ETS Data Carbon Management Layer Fleet Master Automation Layer Allowances and Mitigation Workbench ERP EU ETS Data Web Application Add- Integration Hub on for Allowances Flight Planning Management Euro Control Data MRO Apps EU ETS Process EU ETS Data Application Layer Payload Apps StoreBased on RDBMS EU ETS Process Regulatory Automation Web Application Based on Docs Flex Technology Airline Systems EU ETS Business EU ETS EU ETS GreenSky Solution Controls Controls Business Logic Workbench Repository Logic Engine Automation HCL Proprietary & Confidential Layer Layer Figure 2© 2011, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  5. 5. 5GreenSky: A Solution for Aviation Emissions Reporting and Compliance to EU-ETSSolution Highlights?Business process automation to monitor and report tonne- kilometer and carbon emissions.?Pre-verification services with accredited verifiers to identify and address compliance gaps.?Robust and demonstrable EU ETS controlled environment with inbuilt rules engine.?Comprehensive decision making tools (dashboards, statistical reports) for effective senior management decision making.?Tracking data for audit trail requirements.?Budgeting and forecasting engine.References? [1]: European Commission Climate Action, Inclusion of Note Aviation in EU ETS http://ec.europa.eu/clima/documentation/transport/aviation /index_en.htm? [2]: European Commission Climate Action, Reducing Note emission from Aviation Sector FAQ Section, http://ec.europa.eu/clima/faq/transport/aviation/index_en. htmAuthorVenkata Pani Ravi ChanderVenkata Pani Ravi Chander is part of the Vertical Solutions Group ofthe Transportation Vertical @HCL. He currently works with multiplecustomers across the globe in providing domain led solutions in theareas of Airlines, Airports, Railways, Logistics, Ports and Cargo.Contact us: ttlsolutions@hcl.com© 2011, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  6. 6. 6GreenSky: A Solution for Aviation Emissions Reporting and Compliance to EU-ETSABOUT HCLHCL TechnologiesHCL Technologies is a leading global IT services company, working withclients in the areas that impact and redefine the core of their businesses.Since its inception into the global landscape after its IPO in 1999, HCLfocuses on ‘transformational outsourcing’, underlined by innovation andvalue creation, and offers an integrated portfolio of services includingsoftware led IT solutions, remote infrastructure management,engineering and R&D services and BPO. HCL leverages its extensiveglobal offshore infrastructure and network of offices in 31 countries toprovide holistic, multi-service delivery in key industry verticals includingFinancial Services, Manufacturing, Consumer Services, Public Servicesand Healthcare. HCL takes pride in its philosophy of ‘Employees First’which empowers our 72,267 transformers to create real value forcustomers. HCL Technologies, along with its subsidiaries, hadconsolidated revenues of US$ 3.1 billion (Rs. 14,101 crores), as on 31stDecember 2010 (on LTM basis). For more information, please visitwww.hcltech.comAbout HCL EnterpriseHCL is a $5.7 billion leading global technology and IT enterprisecomprising two companies listed in India - HCL Technologies and HCLInfosystems. Founded in 1976, HCL is one of Indias original IT garagestart-ups. A pioneer of modern computing, HCL is a globaltransformational enterprise today. Its range of offerings includes productengineering, custom & package applications, BPO, IT infrastructureservices, IT hardware, systems integration, and distribution ofinformation and communications technology (ICT) products across awide range of focused industry verticals. The HCL team consists of over79,000 professionals of diverse nationalities, who operate from 31countries including over 500 points of presence in India. HCL haspartnerships with several leading Global 1000 firms, including leading ITand Technology firms. For more information, please visit www.hcl.com© 2011, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.

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