EU aviation alliance support for green recovery

The aviation industry losses will amount to $88 billion this year having lost up to 80% of traffic (IATA) due to the pandemic. It has been estimated that the industry will take between 2-5 years to recover but strong leadership has been demonstrated by a progressive move by the industry to campaign for green recovery. 

Recovery funds in the EU are available to industry partners working toward the Green Deal and green economy initiatives which the aviation stakeholders have continued to support, shown yesterday in a joint statement

On 12th June Fly Green Alliance and Art Fuels Forum hosted an event with IATA, Airlines for Europe (A4E), European Business Aviation Association (EBAA), European Commission, KLM, BA/IAG, Lufthansa, SkyNRG, Airports Region Council and Fed Ex in an effort to join up thinking on how the recovery for aviation can be forged. It was concluded that action needs to be taken to build back better and to be able to serve their customer’s desires for more sustainable travel options. 

Aviation relies heavily on fossil fuel based kerosene but sustainable aviation fuels are tested and ready to commercialise. It will require the support initially from governments, frequent flyers, corporate travellers, travel management companies, airlines themselves and the media to discuss the benefits of sustainable travel and also how to begin to do this. From market research by Ipsos MORI and Global Business Travel Association we’ve found that there is still little knowledge of what sustainable travel is and how to go about this. FGA are working on this and would be happy to present our findings and collaborate with you to enable a green recovery.

The European Commission’s Decision to Support a Revised CORSIA 2019 Baseline

What is CORSIA?

CORSIA was designed by the ICAO (International Civil Aviation Organization) and stands for Carbon Offsetting and Reduction Scheme for International Aviation.

It’s a global market-based measure designed to offset international aviation CO2 emissions to help stabilize emission levels from 2020 onwards. Through this measure, offsetting of CO2 will be achieved through the acquisition and cancelation of emissions units from the global carbon market by airplane operators.” (ICAO 2017)

CORSIA vs. EU ETS:

EU ETS (European Emissions Trading System) was designed and adopted by the EU Member States and only regulates flights within the EEA (both international and domestic). It is a cap-and-trade system for trading carbon allowances by over-and-under-emitters. Some airline associations have argued that because this system only covers flights within the EEA that it could be completely replaced with CORSIA, rather than adding additional administrative work to airlines that operate flights to and from Europe. However, the European Commission, and supporters of EU ETS for Aviation, would argue that CORSIA does not include domestic flights and its baseline is much higher than the one in EU ETS for Aviation, which is why a complete discontinuation of EU ETS for Aviation should not be considered.

The Current Discussion:

Amid the COVID-19 crisis, many industries have voiced a need for changing their protocol and operational practices. The aviation industry is at the forefront of this, especially because 2020 is a critical year for them. The CORSIA mandate, as originally drafted in 2016, would require all airlines in the scheme to offset their carbon emissions above an averaged 2019 and 2020 baseline. However, in light of the almost complete halt of aviation traffic, this baseline will be significantly lower than if it was calculated in a non-COVID operational capacity. IATA estimated that a 2019 and 2020 baseline would be roughly 30% more stringent than originally anticipated pre-COVID-19 pandemic, therefore IATA has suggested changing the baseline to 2019 only. This suggestion hasn’t gone uncontested, ICAO’s environmental committee, CAEP, completed their own analysis and found that allowing this deviation would reduce the offsetting potential to zero for the pilot phase starting next year. In addition, CAEP concluded that overall it would reduce the positive impact of CORSIA by 9 to 32 percent in all of its phases till 2035. Some NGOs, supported by analysis by Oeko-Institut have urged the ICAO Council to not make any changes at this moment, but rather to wait until the scheme’s first review in 2022.

Something to note, the current 36-member ICAO Council includes 8 European countries. A decision should be made by the end of June, after the Council’s 220th session, and formal adoption will happen in late October 2020. The 36 States include: Australia, Brazil, Canada, China, France, Germany, Italy, Japan, Russian Federation, United Kingdom and the United States. Argentina, Colombia, Egypt, Finland, India, Mexico, Netherlands, Nigeria, Saudi Arabia, Singapore, South Africa, Spain, Costa Rica, Côte d’Ivoire, Dominican Republic, Equatorial Guinea, Greece, Malaysia, Paraguay, Peru, Republic of Korea, Sudan, Tunisia, United Arab Emirates, Zambia, Finland, the Netherlands, Costa Rica, Côte d’Ivoire, Dominican Republic, Equatorial Guinea, Greece, Paraguay, Peru, Sudan, and Tunisia were just added in 2019.

The European Commission has decided to support the aviation industry’s request to adopt only 2019 recorded emissions as the new baseline. This is to support the heavily hit aviation industry and ensure other states’ support and participation in CORSIA.

The official ICAO Council meeting begun June 8 and concludes June 26 and should determine the association’s final ruling.

If you have additional questions about this topic, please do not hesitate to get in touch with Ayesha to discuss further: ayesha.andrade@flygreenalliance.org.

Who will keep the party going?

Last week we spoke to a few leading organisations working in the aviation industry to name a few IATA and EBAA. It is understood that the aviation industry is fully in crisis, predictions ranging from a 2 year recovery to up to 5 years to recover. There are certain planes (A380, B747) that won’t fly again so the industry will look different coming out of COVID-19 without a doubt.

Will we see greener aviation after recovery?

Although the European Commissioner for Transport Adina Vălean has recently stated that it is not the time to condition state aid for airlines on green measures, Austrian airlines have attached green conditions to bailouts and KLM/ Air France have been given €10 billion bail out, Minister Bruno Le Maire on Friday saying “is not a blank check”. The company will also be required to become “the most environmentally friendly company on the planet”. The Dutch Government saying they are supporting the Air France-KLM Group through these difficult times with the view to recover its competitiveness consistent with strong sustainable development commitments.


Green bailouts  are thought of as a tricky to commit to with so much uncertainty right now. The US have not attached conditions and have put $25 billion into aviation. Virgin is at risk. Delta is bailed out. IAG have reserves. In Europe it seems that Ryanair, Wizz Air, easyJet and IAG are in the strongest positions right now it has been discussed. 

An interesting article describing the technicalities of scaling fleets back into flight mode was described be Lauren Uppink Calderwood at World Economic Forum in Conde Nast Traveler last week which describes the complexity of the process, a definite good to know when considering the scale of the task at hand. And discussion seems to indicate that ticket prices are likely to go up due to social distancing rules and initial nervousness to fly. Although some airlines, like Ryanair have already said that they will not resume flights if they have to keep middle seats empty to fight COVID-19.


It was said this week that Fly Green Alliance might be a little early to the party but in conversation we said we will keep the party going. This was our founders personal pledge 7 months ago on linkedin.

Sarah Wilkin, CEO & Founder of FGA


How has grounding affected increasing the supply and production of sustainable aviation fuel (SAF)?

It is understood that the aviation industry can not pay 3 times the price of fossil fuel for SAF, and even more so now due to crisis and oil prices never being lower. The price of oil and diversification being discussed in Recharge by Head of the Energy Research Alliance.

We had already switched our thinking to aim for gaining joint financial responsibility between the airlines, corporate customers and hopefully in time government incentives.


We realised we needed to support the industry to green not to negate it but to get to a position where we can provide fuel for the airlines through a joint commitment to pay the premium, a commitment including policy change, a commitment from corporate travellers and then ask the airlines to partly pay for SAF too.

We are transparent by nature with our work so this is a call out for green recovery so that when the corporate travellers are ready to travel again that they travel smart , FGA Travel Smart™, that they support the airlines recover and work to meet 2050 targets to reduce their own emissions from travel but also to get SAF into the tanks of the planes. As traffic was predicted to double by 2036 ,due to our global increased travel and business, this is an immense task for the industry. We now know how much we miss travel or need it but also how cleaner things can be. Let’s work towards being smarter about this.


As Airlines for Europe said #Weareinthistogether.  We are.


A cross-sector collaboration is required. So we’re looking for the early adopters, innovators, futurists, optimists, green recovery activists, thinkers and problem solvers. We need you to plant some seeds. We need drive, vision and understanding. We need you to keep the party going.


#vision #FGAtravelsmart #keepthepartygoing #reset #recalibrate 

When the pandemic subsides, smarter travel should be at the top of companies’ agendas

As posted in Business Traveller, 23rd April, based on an article we wrote.

As we know, business travel isn’t all champagne and business class seats. In fact, for many of us, it’s never that. On the negative side it can sometimes be hard on health and can occasionally lead to poor well-being. So although there are numerous personal and professional stresses on us during this lockdown, for many, it is the chance to take a break from the daily grind.

This might be because we have been furloughed, or alternatively are working from home and avoiding regular commuting. It also means we can communicate with far flung corners of the world by technology, rather than those regular business trips we used to take.

Awareness of mental well-being and its importance has grown in recent years, even if it was hard-won by decades of long hours for many workers. The lockdown has shown flexible working is possible, with people able to be productive for their employers while spending time with loved ones. But once the lockdown ends, will we return to the way we were?

Before the current pandemic, corporations were working towards sustainability. To drop a few names, Amex GBT, SAP Concur, Microsoft and Mastercard are all on this journey with their business strategy aligning with Environmental, Social and Governance (ESG) criteria.

A high ESG score is not only good for the environment, but is good for business too. Share prices often increase as sustainability commitments are made and employee satisfaction and engagement increases too. To take specific examples, in January Microsoft announced it would put $1 billion toward decarbonising by 2030 and removing historical carbon by 2050.  Meanwhile, 90 per cent of consultancy firm PWC’s carbon footprint is from travel and it too recognises it needs to address this.

All companies can begin to ‘Travel Smart’, though. In some cases that may even mean choosing not to travel at all, continuing to stay at home (or the office) and using video conference instead. Good for the bottom line and good for the environment.

But whether it is not travelling or less travelling, if the pandemic can act as a test case for new ways of working, then some good may have come of it. Employees are proving they can be trusted to work well from home and that in the future this will open up flexible working and will be added to more company policies.

We have the tech, we have smart people, we have the money when we need it. So why is finance not getting to the circular economy, the green projects and to improving our emissions reduction faster? We’ve now seen the benefits of cleaner ways.

In the European Parliament on Monday April 14 an appeal was proposed for a #GreenRecovery. The idea is that the bailouts and building the economy back up from recession should be a “Green Deal’, and conditions should be applied while finances are being shared out. We believe that we should take this opportunity to accelerate the work towards carbon neutrality by 2050 in line with the Paris Agreement.

We set up flygreenalliance.org to support the mission to increase sustainable aviation fuel (SAF). A challenge is that even as greener fuel is adopted, a predicted doubling of aviation passenger traffic by 2036 to 7.8 billion passengers would swamp any improvement gained from SAF, so we needed to broaden our mission and encourage people to fly less. This doesn’t mean penalising flying, but it does mean balancing those increases in travel that will certainly happen with our global carbon footprints.

The result of this was FGAtravelsmart.com. We advocate for quality travel, which means paying to fly green and making a contribution to decarbonising the industry through meaningful offsets that support research into innovating the industry and which pay for SAF.

We have based this on our research and from listening to what companies want and are looking for in their aims to reduce their emissions and contribute to climate work globally. We are working on a best practice sustainable travel policy document, and you can register to receive a copy on our website. We welcome your comments and wish to open up some discussions so we can begin to rethink how we conduct work and travel for business, so we can all contribute to our green future.

We are #Strongertogether in everything. We have seen this from COVID-19, so let’s work for a #GreenRecovery.

FGAtravelsmart.com

Sarah Wilkin is founder and CEO of Fly Green Alliance

Green recovery alliance: reboot & reboost

‘After the crisis, the time will come to rebuild. This moment of recovery will be an opportunity to rethink our society and develop a new model of prosperity. This new model will have to answer to our needs and priorities.’ – GreenRecovery – Pascal Canfin

180 politicians, CEOs, Think Tanks , NGO and global leaders have signed the #GreenRecovery plan launched by politician Pascal Canfin in the European Parliament Monday 14th April.

As more write ups appear and more support for these sentiments come, we see there is increased lobbying for green recovery. Read more on Euractiv and Bloomberg, on our linkedin, watch commentary on youtube and read the full list of signatories here. They include: Ikea, Volvo, L’Oreal, Microsoft, Pepsico, Lego, Unilever, Danone, E.ON and many more.


These are words we absolutely agree with.


Right now in this moment we have an opportunity to implement a revolutionary progressive reset in travel and business. Let’s take this chance and create a new model.” – FGA Travel Smart™read more.

We are working with policy makers and industry to get to this point. Join us in this systemic and policy rethink at a point where we can all make a difference and can contribute to societal change through an alliance.


Green recovery is key to a stable future.

FGA

FGA response to ReFuelEU Aviation Consultation

FGA will be responding to the consultation that the European Commission opened March 24th and which closes 21st April. 

We think this is an excellent opportunity and platform to share market experiences, discuss mechanisms and air industry views as a contribution toward the European Commission’s New Green Deal. 

This is all the more relevant during a period where sustainable recovery of the aviation sector will be key to a successful future and green bailouts and change are being demanded. 

What is being said in the media? 

  • ‘COVID-19 will change the world permanently, the rules we lived by won’t apply…new forms of reform’ – Politico 
  • Reimagine capitalism’- Professor Rebecca Henderson, Harvard 
  • ‘We need more proactive thinking from airlines – they can’t imagine we will go back to the way they were before’ – Climate Policy Initiative
  • ‘Airlines calling for public support in bad times should accept they need to start paying taxes in good times’ – Transport & Environment 


So how do we move forward to a new deal for aviation? A few key points in our response:

  • Fast track access to grants or free grant writers to scale SAF research and consortium 
  • Red II – recast to Red III – aviation as mandatory part of member state climate action plans for transport
  • Auctioning/tendering – we agree this will work in 5 years time, as per our discussion here citing Wind Europe’s example of successful tendering 
  • It is essential to create financial structures which include agreed: airport, airline, technology, feedstock and corporate customers before defining targets across member states based on feasible volumes
  • Read our additional comments in Recharge News from earlier this year 

We ask you to join us to make a joint statement or hope to encourage you to respond individually. Please contact us if you wish to discuss your thoughts further with FGA. 

VACANCY: PAID FGA INTERN

At FGA we are looking for 1-2 paid interns. 


FGA are climate mitigation specialists focusing on reducing emission in the travel sector. We work and co-operate with corporations, the European Commission, fuel companies, airlines, EU lobbying associations and member states to bring funding, mechanisms and awareness to the sustainable travel sector. 


We’ve recently discussed our work in the press here and also presented at the Expedia and Linkedin offices in February to corporate travellers and travel management companies discussing our role in the industry. 

Our team consists of senior researchers and business developers and we’re keen to have more support to do both. 


Ideally the person/people have a research, sustainability, energy or aviation background but willingness to contribute and work hard is the main focus and career changers are very welcome.

If you speak Portuguese this is also a bonus. We’ll be on the look out for new team members on an ongoing basis so please get in touch for an initial chat or message sarah@flygreenalliance.org with your CV and an intro message.


Thanks

The FGA Team 

Aviation Industry talks amid COVID-19 Crisis: sustainable long-term planning as the UN’s ICAO updates CORSIA – 13th March

Last Friday, 13th March, the UN’s International Civil Aviation Organization (ICAO) approved the eligible emission units for the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

This recent CORSIA update has opened up acceptance to further carbon offsetting schemes initially in a 2021-2023 pilot phase and has excluded old credits that are unlikely to bring real emissions reduction benefits to the industry. The named schemes include:

• American Carbon Registry 

• China GHG Voluntary Emission Reduction Program 

• Clean Development Mechanism 

• Climate Action Reserve 

• The Gold Standard 

• Verified Carbon Standard 

“At a time of extreme stress for the industry, aviation has stood by its commitment to grapple with the climate crisis even as it deals with the immediate tragedy of COVID-19. That is a demonstration of real leadership,” said the Environmental Defence Fund’s Annie Petsonk.

FGA believes this to be a positive move for the aviation sector and an important milestone which upholds environmental commitments at a difficult time. It will make funds available from outside of the industry which will make it more accessible for corporations and travellers to offset through sustainable aviation fuel (SAF). This is crucial in the bid to reach the Paris Agreement on time.

The move will stimulate investment in the coming years by demonstrating that there are mechanisms to support paying the premium of SAF, and in a letter to the Commission and EU Transport Ministers this week, it was clear that long term planning was still very much in mind “Preserving airports’ economic and financial resilience so as to allow airports to return to normal operations as soon as possible and support the recovery of the wider economy. Airports act as engine of local and regional economic growth and employment. Many of them are indeed the largest employment site in their region and/or country. This means that their own standing and capabilities directly support that of their communities. In this regards, it is essential for them to preserve their long-term strategic investment – including those relating to decarbonization efforts.” Airports Council International.

As it stands SAF is 3 times as expensive and although touted as one of the most effective ways to reduce emissions in the industry, it is still unaffordable by the industry and not invested in heavily.

At this time and during the recovery phase aviation will need, and has requested, global financial support to get back on track and to hit it’s emission reduction targets. The industry and European Commission, in talks this week, are very much concentrating on long term sustainable planning for decarbonisation.

FGA are the owners of a Gold Standard approved project which demonstrates that SAF is an offset and we are creating a methodology with Trinity College Dublin in order to get SAF to market quicker. We are pleased that the mechanism can be counted towards aviation’s mission to reduce carbon globally.

If you wish to discuss how this mechanism is going to develop, would like more information on Gold Standard, offsets or sustainable travel please contact us at FGA.

FGA will be supporting aviation’s sustainable future.