Panagiotis Karamanos & Michael O’Connor* Environmental Experts, in EU-India Collaboration “Institutional Capacity Building for the Civil Aviation Sector in India, ” from Athens International Airport June 24, 2011 *This document represents the views of the above authors only limate Change and the European Union’s Emission Trading Scheme The Challenge for Indian Airlines
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Panagiotis Karamanos & Michael O’Connor* Environmental Experts, in EU-India Collaboration “Institutional Capacity Building for the Civil Aviation Sector.
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Panagiotis Karamanos & Michael O’Connor*Environmental Experts, in EU-India Collaboration
“Institutional Capacity Building for the Civil Aviation Sector in India,”
from Athens International Airport
June 24, 2011*This document represents the views of the above authors only
Climate Change and the European Union’s Emission Trading Scheme
The Challenge for Indian Airlines
1. European Union’s approach to climate change
2. Aviation and the Emission Trading Scheme
3. Responsibilities of Indian airlines
Discussion
European Union’s response
Ratification of Kyoto Protocol by all EU Member States in 2002
EU target: 8% reduction distributed amongst its Member States (e.g. Germany -21%, UK -12.5%, Greece +25%)
Generally aggressive position on climate change compared to other developed nations as shown by 2020 targets: Reduce GHG emissions by at least 20% vs. 1990
Increase share of renewable energy to 20%
Increase energy efficiency by 20%
Comprehensive policy and instruments to back up 2020 targets including the world’s largest Emission Trading Scheme (ETS) for GHGs
EU Emission Trading Scheme Established through Directive 2003/87/EC
Covers 10,000+ installations (>20MW) ~50% of EU’s CO2
Member States set National Emission Caps and allocate allowances for free and increasingly by auction
Participants exceeding their allowed emission quota may purchase allowances from other, cleaner participants, purchase approved emission reduction credits through Clean Development Mechanisms or Joint Implementation projects, or pay a fine
1st Trading Period: 2005-2007 completed
2nd Trading Period: 2008-2012 in progress
Annual monitoring, verification & reporting of emissions
CO2 Emissions by Sector
2%
2%
11%
15%
33%
24%
13%
Road Aviation Chemicals & CementLand Use Change & Forestry Light, Electricity, Heat Other Energy & IndustryOther Transportation
Multiple contributors & stakeholders Airport operators 5% of the 2% share (i.e. 0.1% of
the
emissions) is attributable to airports
Greater airport community (handling, cargo, retail, etc.)
Passengers (business, tourism)
International Civil Aviation Authority (ICAO) and local Civil Aviation Authorities
Airlines
Aircraft manufacturers
Engine manufacturers
What are airports doing about climate change?
Airport Carbon Accreditation ““ACI EUROPE and its ACI EUROPE and its
members commit to reduce members commit to reduce carbon emissions from carbon emissions from airport operations fully airport operations fully
within their own control with within their own control with the ultimate target to the ultimate target to
become carbon neutral.”become carbon neutral.”
Level 1: Mapping Ankara, Antalya, Bologna, Budapest, Chisinau, Cork, Dublin, Dubrovnik, Farnborough, Istanbul, Izmir, Portuguese Airports, Prague, Shannon, Toulouse-Blagnac Airport
Level 2: Reduction Athens International Airport, Brussels, Charles de Gaulle, Frankfurt, Hamburg, Kristiansand, Manchester, Orly
Level 3: Optimisation
Amsterdam, Heathrow, Gothenburg, Munich, Zurich
Level 3+: Neutrality
Göteborg Landvetter, Linate, Malpensa, Oslo, Stockholm, Trondheim, Umea
Levels of accreditation & participants
Athens International Airport
Accredited at Level 1 (Mapping) in 2009
Upgraded to Level 2 (Reduction) in 2010
Emission reduction target:
25% reduction in CO2 emissions (Scope 1 and 2)
by 2020 using 2005 as a baseline year
Climate Change Corporate Action Plan since 2008:
Conversion of vehicles to LPG / purchase of hybrid vehicles
Investment in energy-saving technology (hardware & software)
50% recycling rate target for 2012 / use of recycled materials
Vravrona wetlands protection programme
8MW photovoltaic park under construction
Multiple contributors & stakeholders Airport operators 5% of the 2% share (i.e. 0.1% of
the
emissions) is attributable to airports
Greater airport community (handling, cargo, retail, etc.)
Passengers (business, tourism)
International Civil Aviation Authority (ICAO) and local Civil Aviation Authorities
Airlines
Aircraft manufacturers
Engine manufacturers
What about aircraft emissions?
In 2009 the States belonging to the International Civil Aviation Organisation (ICAO) agreed to the following: a global goal of 2% annual improvement up to 2050
further explore more ambitious emission reductions including carbon-neutral growth
development of a global CO2 standard for aircraft
development of a framework for market-based measures, such as emissions trading, in international aviation
further financial and technical assistance to States
submission of States’ action plans which outline their policies and actions as well as annual reporting of aviation fuel consumption.
What about airlines?
IATA’s (International Air Transport Association) 4-pillar strategy calls for improvements in:
Technology (airframe design and materials, engine efficiency, alternative fuels, etc.)
Operational Efficiency (aircraft and ground operations)
Challenge: to be environmentally effective and economically feasible
Inclusion of aviation in EU ETS
EU is implementing the first ETS to address aviation
Aviation included in EU ETS through Directive 2008/101/EC
All (European and foreign carrier) flights landing at or taking off from airports in EU Member States
De minimis: airlines with less than 1 round-trip flight to / from the EU per day are exempt as well as some types of flights (training, military, research, etc.)
Inclusion starts in 2012 and continues through next period: 2013-2020
Inclusion of aviation in EU ETS Benchmark set at average of 2004-2006
emissions in order to account for considerable growth in aviation since 1990
Emissions cap: 97% of benchmark in 2012 decreasing to 95% in 2013