This CAPA report summarizes recent aviation sustainability news and environment news. It is based on 300+ CAPA news alerts daily. Contact us for more information.
IATA director fuel Alexander Kper, speaking at the CAPA Airline Leader Summit “Airlines in” Transition’, stated (07-Apr-2022) “We are getting the oil industry committed to net zero, it will be challenging, and it will become more expensive, but it absolutely can be done, and we’ve already embarked on the journey”.
Kuper stated: “Sustainable Aviation Fuel (SAF) will be our main tool to reach where we want to go in 2050. We are hoping it will move faster than 2050. If we look at how many traditional fuel refineries are closing, there is certainly a reason for us to be hopeful that SAF production can be increased more than initial calculations.
Birmingham Airport has published a roadmap to achieve net zero carbon emissions in 2033
Birmingham Airport published (12-Apr-2022) its roadmap to reaching net zero carbon emissions by 2033, with commitments including:
- Initial multi-million-pound commitment to reduce Scope 1 & 2 emissions by 60% by 2025, through investments in renewable energy generation on-site, energy efficient lighting, and energy management technology.
- Solar power can provide up to 40% of your electricity needs
- All airport sites to 100% green tariff electricity starting in April 2022
- Increase the number and quality of electric vehicle charging points to 25
- Upgrading heating and cooling infrastructure
- Invest in new technologies to generate low-carbon energy beyond 2030.
- Collaboration with stakeholders and engagement
CEO Nick Barton stated that “Our investment to become Net Zero will increase immediately with a multimillion pound outlay until 2025, focusing primarily on renewables, energy efficiency, and renewables.” He also said that “The second phase will be developed to complete our net-zero transition by 2033 with a focus upon emerging technologies to create low-carbon environments.” [more – original PR]
Original report: Birmingham Airports Flight Zero Takes Off
Birmingham Airport has published its plan to become net zero carbon by 2033.
Midlands airport first announced its ambitions in 2019. It is still determined to reach its 2033 target. Its roadmap prioritizes zero-carbon airport operations while minimising carbon offsets.
The plan builds upon a decade of learning from and investments that have already resulted in 33% less emissions. This was achieved by the use of solar, electric vehicles transition and energy efficiency measures.
The commitment to Birmingham Airport over the next decade includes:
- an initial multi-million pound commitment over the next four years to reduce emissions that the airport controls (*Scope 1 and 2) by 60% by investing in on-site renewable energy generation, energy-efficient lighting and energy management technology.
- Solar power can supply up to 40% of the electricity used at the airport.
- The entire airport site will be switched to 100% green tariff electricity by April 2022.
- To accommodate the increasing number of low-carbon cars that use the airport, we are increasing the number of electric vehicle charging stations from 25.
- Renovating the airport’s cooling and heating infrastructure, as well as upgrades to the building fabric, and a gradual transition towards low carbon.
- Invest in emerging technologies to generate low carbon energy beyond 2030.
- engaging with a range of stakeholders including customers, employees, tenants and political stakeholders to collaborate and bring lower-carbon technologies, aircraft and operations to Birmingham Airport.
UK airports account for 0.7% of UK aviation emission. While it is important that Birmingham Airport reduces Scope 1 & Scope 2 emissions, it’s also vital to support airlines as well as third parties using the airport to reduce their airport emissions.
Nick Barton, chief executive at Birmingham Airports, stated that the Net Zero Carbon Plan outlines how we will achieve net zero carbon emissions by 2033. It involves investments in energy-saving initiatives and stakeholder partnership over the next ten year.
Our investment to become zero will rise immediately. We will spend multi-millions of pounds up to 2025 on renewables, energy efficiency, and other investments. The second phase of our net zero transition will see us invest in emerging technologies to create a low carbon environment.
Although we have a track record of low carbon operations, it is clear that we need to take more immediate and effective action to reach our net zero target. Our combined operations can bring about real climate change through innovation and partnership cooperation.
We are proud of this commitment and excited to reduce our carbon footprint for emission within our own control. We also look forward to working with our stakeholders in order to bring low-carbon operations to ground and aircraft movements.
The airport has published its Sustainability Update for 2020/21. This updates the airport on progress made in the first two years of implementing its 2020-2025 sustainability strategy. This document outlines the airport’s goals and objectives for climate change and local air quality, waste and the circular economy, water and biodiversity, economic development and employment, community investment, wellbeing, and well-being.
Nick said: We could not have predicted the devastating effects of the pandemic when we launched the Sustainability Strategy in late 2019. Although the impact on aviation is not uncommon, we have had to diversify our investments and prioritise our investments over the past few years.
We are seeing signs of recovery and I am confident that we will reach net zero by 2033 and fulfill our sustainability strategy commitments over the next years. Birmingham Airport’s responsibility to be a good neighbor is a key business imperative. I hope these publications will help inform our stakeholders about how we will continue to create jobs, serve our regions flying needs, and reduce our impact on our environment.
The government supports allowing time for technological innovation in order to decarbonise air travel. The Jet Zero Council was established to coordinate the policy and regulatory framework necessary to achieve net zero aviation by 2050.
The Toulouse Declaration, signed by Birmingham Airport, marks the first time that European Governments (the European Commission), industry, unions, or other key stakeholders have officially aligned on aviation carbonisation. This is a significant moment that will pave the way for concrete next steps.
The airport is also a member Sustainable Aviation, a long term strategy that outlines the collective approach of UK air travel to addressing the challenge of creating a cleaner, more sustainable, and smarter future. It was launched in 2005 and is a first of its kind. It brings together major UK airlines, airports as well as manufacturers, air navigation service providers, key business partners, and other key stakeholders.
Oceania Biofuels selects Gladstone for Australia’s first SAF commercial biorefinery
QueenslandSteven Miles, Deputy Premier of Australia, announced that Gladstone had been selected to host a new AUD500m (USD372.5 Million) renewable diesel and sustainable aircraft fuel (SAF).
Mr Miles indicated that Oceania Biofuels selected the Yarwun Industrial Precinct of the Gladstone State Development Area to build the refinery. The contract is currently with Economic Development Queensland.
Mr Miles stated that the project “will be” Australia“The first commercial sustainable aviation fuel biorefinery. It created around 60 direct jobs and indirectly supported an estimated 500 regional jobs during construction. This is a significant opportunity for Queensland to build a strong international reputation as a location for biofuels production within the western pacific region. This new plant will show the world that we are ready.”
Construction is scheduled to begin in 2023. [more – original PR]
Original report: Gladstone’s new biorefinery worth $500 million
Deputy Premier, Minister of State Development, Infrastructure, Local Government and Planning and minister Assisting The Premier on Olympics InfrastructureThe Honourable Steven Miles
Gladstone was selected as the site for a new 500 million dollar renewable diesel and sustainable aviation fuel biorefinery.
Steven Miles, acting Premier, said Oceania Biofuels had selected a site within Yarwun Industrial Precinct, Gladstone State Development Area, for their new biofuel refinery. The contract is with Economic Development Queensland.
The $500 million project is Australia’s first commercial sustainable aviation fuel refinery. It will create approximately 60 jobs and indirectly support an estimated 500 jobs in the region during construction and operation. This will provide a significant economic boost to the local community, Mr Miles stated.
Oceania Biofuels was attracted by Queensland’s commitment to developing a biofuels industry.
This project, in conjunction with Northern Oils Advanced Biofuel Pilot Plant is growing this emerging industry. It also strengthens our efforts towards creating an export-oriented, sustainable industrial biotechnology sector for Queensland. It will help us to fuel our economic future as well as contribute to our decarbonisation targets.
Queensland has an excellent opportunity to be known internationally as the center for biofuels production within the western Pacific region. This new plant will let the world know that Queensland is on the right track.
Gladstone was chosen as the location for the refinery by Glenn Butcher, Minister of Regional Development and Manufacturing, and Minister for Water.
Internationally, fuel safety is a major concern. The biorefinery will increase Australia’s sovereign capacity to produce and distribute finished petrols, Mr Butcher stated.
It also adds diversity and value to the mix for new industries investing in Gladstone.
These commitments are part of Queensland’s plan for economic recovery and help Central Queensland to become a major hub for new industries, creating long-term jobs.
Oceania Biofuels CEO Mike Everton said that it was exciting to see the project reach the milestone of securing an area.
We are delighted to bring this world-class project to Queensland. These alternative fuels will reduce the emissions of our planes and heavy trucks, and create a bridge to a sustainable future, Mr Everton stated.
This is great news for Queensland. It’s also an exciting step for Australia’s energy sector, creating regional jobs as well as a new export industry that will provide Australian industries with decarbonised fuel options.
Gladstone is the perfect location for us because it has a highly-skilled workforce and access to deep-water ports, which will help us increase our export potential.
The purpose-built plant will make sustainable aviation fuel and renewable diesel by using locally sourced waste and sustainable feedstock like tallow, canola, and used cooking oils. It will produce more than 350,000,000 litres per year.
Construction of the plant will begin in Gladstone in 2023.
Queensland Governments Biofutures 10-Year Roadmap, Action Plan and Vision for $1 Billion Sustainable Industrial Biotechnology and Bioproducts Sector in Queensland is part of Queenslands economic recovery program.
Skyscanner educates customers about sustainable choices
Skyscanner chief product officer Piero Sierra, speaking at the CAPA Airline Leader Summit: “Airlines In Transition” stated (07-Apr-2022) between mid 2018 and 2019, the company “put 179 million passengers on a plane”, and from pent up demand have helped kick off sustainability initiatives “which is now part of our mission”.
Mr Sierra said that “We really care about this, & we see ourselves as being a bridge for travellers and consumers.”
Mr Sierra stated: “Overall I think there’s still a gap from a consumer standpoint between their values and what they do. They’re willing if it is easy, but they may be able to change if they encounter stumbling blocks.”
He stated that the efficacy of the solution is also relevant to the consumer. Our job is to educate consumers to not only capture the demand for sustainable options but also to encourage transparency and clarity in their decisions.
Six global financial institutions form the Aviation Climate-Aligned Finance Working Group
RMI announced (07-Apr-2022) its Center for Climate-Aligned Finance will partner with Bank of America, BNP Paribas, Citi, Crdit Agricole CIB, Societe Generale and Standard Chartered to form the Aviation Climate-Aligned Finance Working Group, with the aim to help decarbonise the aviation sector.
The working group intends to create a climate aligned finance framework by the end of 2022 that defines common goals for action in aviation sector decarbonisation.
The working group will invite other financial institutions to adopt the framework by the end of 2022 help set global best practices on climate for aviation finance.
The framework is a commitment of the participating financial institutions to annually evaluate and disclose the extent to which greenhouse gas emissions from aircraft, airlines, and lessors they finance are in compliance with 1.5C climate targets. This is consistent with UN-convened Net Zero Banking Alliance.
Financial institutions will now be able to assess their aviation loan books’ emissions and work with clients to report and fund lower-carbon solutions. [more – original PR] [more – original PR – II] [more – original PR – III]
Original report: Six global financial institutions chart a flight path to decarbonizing aviation
Leading lenders to the global aviation industry, Bank of America, BNP Paribas and Citi, Crdit Agricole CIB Societe Generale, Societe Generale, and Crdit Agricole CIB are working together to create a climate-aligned financing framework to support decarbonization of the aviation industry.
Six of the most prominent lenders to the aviation industry, BNP Paribas Bank of America and Citi, Crdit Agricole CIB Societe Generale and Standard Chartered, today announced that they will be partnering with RMIs Center for Climate-Aligned Finance (RMIs Center for Climate-Aligned Finance) to help decarbonize aviation through the creation of the Aviation Climate-Aligned Finance Working Group. The Working Group seeks to establish a collective climate-aligned financing (CAF) framework that sets common goals for action towards decarbonization of the aviation sector. Participating financial institutions are required to annually assess the compliance with 1.5C climate targets by the CAF framework.
The Working Group hopes to establish a CAF framework that is industry-supported before 2022. The framework will ensure consistency and transparency in reporting and establish a level playing ground for measuring progress towards climate targets. Financial institutions will be able, with the CAF framework, to assess the emissions from their aviation loan books, and work with clients to report their emissions, finance lower-carbon solutions, and support investments into new technologies.
Global CO2 emissions are 2.5% due to the aviation sector. Air traffic is expected to grow significantly through 2050. In a business-as usual scenario, aviation alone could consume as much as 10% of the planet’s remaining global carbon budget by 2020. The International Air Transport Association has committed to net-zero emissions by 2050. This is a response that the aviation sector has initiated. The aviation sector is working to support these goals by investing in more efficient aircraft and supporting the development of new aviation technology. It also wants to accelerate the transition to sustainable aviation fuels (SAF) to meet its goals. Financial institutions will play a key role in financing the projects, technologies and companies involved in this net zero transition.
The Center for Climate-Aligned Finance will facilitate the Working Group, which includes senior members of each participating financial institution’s aviation team. The Working Group will work with existing decarbonization efforts to develop measurement methodologies, emissions benchmarks, data pathways and governance structures for the CAF framework. The Working Group will invite financial institutions to adopt the CAF framework before year-end. This will help establish global best practices in climate finance for aviation finance.
Financial institutions interested in staying up-to-date with the process and giving feedback during development are invited to join the Review Group. Financial institutions can submit an expression to interest to learn more.
The Center for Climate-Aligned Finance (CCAF) will facilitate collaboration between the Working Group with leading aviation and sustainable finance-focused partnership organizations to ensure that the goals of firms in the aviation industry and their financial partners are aligned. The Glasgow Financial Alliance for Net Zero (NZBA) and Clean Skies for Tomorrow are two examples of partner organizations. The Centers partnership for NZBA has already helped banks understand how to decarbonize hard-to-abate industries and align with a 1.5C path.
The aviation CAF framework is based on the Poseidon Principles in maritime shipping and the soon-to be-launched CAF agreement in steel. The Poseidon Principles for maritime shipping were launched in 2019 by 11 banking signatories. Today, Poseidon boasts 29 signatories representing more than 50% global ship finance. The aviation CAF framework was created to be adopted quickly by global aviation financiers.
Quotes from Working Group members
BofA Securities’ Dan Melaugh is the Managing Director of Airlines Global Corporate & Investment Banking. He said that the Aviation Climate-Aligned Finance Working Group builds off our commitment to financing climate solutions. It is vital that we promote innovation and develop a decarbonization pathway in aviation. We are honored to have been able to contribute to this RMI effort.
Bertrand Dehouck from BNP Paribas’ Head of Transportation Capital Markets said, “We are aware that aviation is a sector where greenhouse gas emissions will be difficult to reduce.” We are eager to work with RMI and our Aviation Climate-Aligned Finance Working Group Partners towards establishing a solid framework for measuring the carbon intensity of aviation finance business and setting climate alignment targets. Our goal is to foster a framework for the Net-Zero Banking Alliance, with the aim of supporting our clients in their transition.
Munawar Z. Noorani is the Global Co-Head for Aviation at Citi. He stated, “Despite the many challenges facing the global economy,” that the strong positive momentum must be maintained in addressing climate risk, especially in difficult-to-abate sector like aviation. Citi is delighted to again partner with RMI to develop a framework for measuring emissions related to aviation finance. This initiative will help us further support the Net-Zero Banking Alliance’s goals of decarbonization, which Citi is a part of.
Jos Abramovici is the Global Head of Asset Finance Group at Crdit Agricole CIB. He said, “We are very happy to be a founding Member of the Aviation Climate-Aligned Finance Working Group, RMI and other top aviation banks. We intend to provide a solid and effective framework for all stakeholders involved in aviation finance including airlines, investors, and lessors. We strongly believe that decarbonization is essential to ensure the long-term sustainability of the aviation sector.
Yann Sonnallier is the Global Head of Aviation Finance at Societe Generale. He stated, “As a founding member to the Aviation Climate-Aligned Finance Working Group our ambition is help define within a brief time frame a clear, transparent pathway consistent with Paris Agreement objectives, for the benefit all stakeholders involved in air transportation industry.” Societe Generale is proud of being part of the driving force behind the future decarbonized aviation industry.
Standard Chartered Bank’s Global Head for Aviation Finance and CEO of Ireland, KieranCorr, said that Standard Chartered is committed in promoting sustainable social and economic development through its operations and communities. We are pleased to be working with RMI, a founding member, in the CAF working group. This group includes other top aviation banks to help develop a strong framework for aviation’s path to decarbonization.
James Mitchell, director at The Center for Climate-Aligned Finance, stated, “Our work across steel, shipping, and now aviation has shown that collaboration is key for meeting our climate commitments and decarbonizing the hard-to-abate industries. We applaud the Working Group bank for creating a global platform that will accelerate the decarbonization and growth of the aviation sector. Now is the time to get started.