Aviation’s Environmental Challenge: A Call to Action
The aviation industry is increasingly under pressure due to environmental regulations, making immediate action from airlines and other stakeholders an urgent necessity. Here are some essential facts to grasp the impact of the aviation sector on the environment:
- Global aviation is responsible for approximately 2.1% of worldwide carbon emissions, with international flights accounting for nearly 1.3% of these emissions.
- The industry is committed to achieving net-zero emissions by 2050, with the formulation of a strategy to reach this target a high priority.
- Despite ongoing sustainability efforts, emissions are predicted to rise with the resurgence of demand post the COVID-19 pandemic.
- Rising carbon costs mean aviation must adapt to comply with various legislations, including EU ETS, UK ETS, CORSIA, SAF, and ETD (Energy Taxation Directive).
- The route to net-zero will necessitate a blend of offsetting, new technologies, infrastructure enhancements, and operational modifications.
Understanding Emission Trading Schemes and Carbon Offsetting
Markets that could impact businesses include Emission Trading Schemes (ETS), Carbon Offsetting and Reduction Scheme (CORSIA), and Sustainable Aviation Fuel (SAF).
Under the Emission Trading Schemes (ETS) enforced in Europe, all airlines, irrespective of their origin, must track, report, and validate their emissions, surrendering allowances equivalent to their emissions. This requirement applies to both European and non-European airlines operating within European airspace.
The Carbon Offsetting and Reduction Scheme (CORSIA), established by the International Civil Aviation Organisation (ICAO) in 2016, serves as the first global market-based measure for aviation. CORSIA provides a standardised, coordinated approach to offsetting international aviation emissions, utilising voluntary carbon credits.
Sustainable Aviation Fuel: Towards Net-Zero Emissions
Sustainable Aviation Fuel (SAF) is central to the aviation industry’s net-zero carbon emissions target. SAF is anticipated to play a significant role in maximising emissions reduction, potentially contributing up to 65% of the reduction required for aviation to reach net-zero emissions by 2050.
Navigating the Path to Sustainable Aviation with Redshaw Advisors
To successfully navigate the intricacies of the EU or UK ETS, carbon offsetting, and opportunities related to Sustainable Aviation Fuels (SAF), companies must develop a solid strategy.
Redshaw Advisors is dedicated to assisting the aviation industry on its path towards a sustainable future. Our team of experts stands ready to aid aviation companies in understanding and managing their environmental market risks.
We provide a variety of readily available solutions and personalised consultancy services to aviation companies, backed by unbiased carbon market research from our dedicated research team.
Our offerings include:
- Research and Advisory services
- Training programmes
- Bespoke Consultancy (including SAF)
- Risk Management advice
- Procurement services
We can support you in Compliance markets: EU ETS & UK ETS, CORSIA & voluntary carbon markets, and renewable energy certificates.