IATA NET ZERO RESOLUTION

The International Air Transport Association (IATA) represents most of the world's airlines, making it a powerful platform for international collaboration and coordination.

By setting a target for net-zero carbon emissions, the IATA acknowledges the urgent need to address climate change and mitigate the industry's impact on the environment.

The IATA Net Zero Resolution provides a roadmap that is focused on delivering a maximum reduction in emissions at source through four key elements:

• The use of sustainable aviation fuel, sourced from feedstocks that do not degrade the environment or compete with food or water

• Investment in new aircraft technology, including radical new aerodynamic and alternative propulsion (electric or hydrogen) solutions

• Continued improvement in infrastructure and operational efficiency, with a particular focus on improved air traffic management

• The use of approved offsets including carbon capture and storage technology

As more investors, customers, and communities expect businesses to prioritise sustainability, the resolution encourages global aviation's commitment to combating climate change head-on.

Will it really work?

While the Net Zero Resolution is laudable, it will be challenging to achieve and has attracted criticism from various quarters. Here are some of the key challenges and criticisms:

1. Dependence on offsetting: The IATA's plan heavily relies on carbon offsetting - that is, investing in projects that remove or reduce CO2 elsewhere to compensate for the emissions produced by flights. Critics argue that offsetting is not a long-term solution and does not encourage enough reduction in emissions at the source. Some also question the effectiveness and accountability of offset projects.

2. Scope of emissions: While the IATA's net-zero target includes CO2 emissions from flights, it does not cover non-CO2 emissions, such as those from contrails and nitrogen oxides. Furthermore, it does not cover emissions from the production of aviation fuels or the manufacturing and disposal of aircraft.

3. Over-reliance on future technologies: Next-generation aircraft are not yet mature or economically viable at the necessary scale. There's a risk that the industry won't be able to scale up these technologies as fast as needed to meet the net-zero target.

4. High hosts: Transitioning to SAF and new technologies will be expensive. This is a significant challenge in an industry with historically thin profit margins and one that has been hit hard by the COVID-19 pandemic. There's also the question of who will pay for these changes - airlines, passengers, governments, or some combination of the three.

5. Regulatory and policy challenges: Coordinating the required changes and getting buy-in from all stakeholders can be a complex and time-consuming process.

6. Equity concerns: Some critics argue that the IATA's plan does not adequately address equity concerns. For example, carbon offsetting projects often take place in developing countries, which can lead to issues around land use and the rights of local communities. Similarly, if the costs of the transition to net zero are passed onto passengers in the form of higher ticket prices, this could make air travel less accessible for some people.

Corsia

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is a programme designed to help the aviation industry reduce its carbon emissions. It's been set up by the International Civil Aviation Organization (ICAO), a group that oversees international air travel.

In simple terms, CORSIA works like this: imagine you're an airline, and your planes give off a certain amount of CO2 when they fly. Under CORSIA, if your flights give off more CO2 than a set limit, you need to make up for it. You do this by investing in projects that reduce CO2 elsewhere, like planting trees or creating renewable energy (i.e., carbon offsetting).

CORSIA aims to ensure that any growth in international flights after 2020 doesn't lead to a rise in total CO2 emissions from the industry. The idea is to encourage airlines to cut their emissions where they can and offset the rest.

Benefits of CORSIA

1. Global impact: It is the first global scheme aimed at reducing CO2 emissions from a single industry. This is a big deal, given how much carbon dioxide is given off by planes.

2. Encourages cleaner technologies: By setting a limit on CO2 emissions, CORSIA encourages airlines to use cleaner technologies and fuels.

3. Flexible compliance: Airlines have flexibility in how they meet their offsetting requirements. They can reduce their own emissions, buy carbon credits from other airlines, or invest in offset projects.

Criticisms of CORSIA

1. Dependence on offsetting: Critics argue that CORSIA relies too much on offsetting rather than on actual reductions in emissions. Offsetting projects can be complex and expensive. With offsets under CORSIA costing, about as low as €2.40 per passenger, for a long haul flight, their effectiveness is often questionable.

2. Voluntary participation: CORSIA's first few years are voluntary, and not all countries are participating. This means a significant amount of aviation emissions may not be covered by the scheme

3. Limited scope: CORSIA only applies to international flights and not to domestic ones. As such, a large proportion of global aviation emissions are not covered.

4. No non-CO2 emissions: CORSIA does not cover non-CO2 emissions, like those from contrails and nitrogen oxides, which also contribute to global warming.

SBTi

Founded in 2015, The Science Based Targets initiative (SBTi) is a global body that aims to help companies and financial institutions set greenhouse gas emissions reduction targets in line with the goals of the Paris Agreement.

In essence, the SBTi shows organisations how much and how quickly they need to reduce their greenhouse gas emissions to prevent the worst effects of climate change. SBTi defines targets as ‘science-based’ if they provide a clearly-defined pathway, in accordance with the latest scientific findings.

The SBTi, however, has been criticised for not being transparent about its methods. Once a target has been validated by the SBTi, there is no obligation for companies to follow through on the goals. While companies are required to explain their cause, failure to achieve a target does not amount to any penalty. The SBTi is currently working towards revising its framework to overcome its shortcomings.

The SBTi stamp of approval is quite popular amongst airlines, with airlines like Air New Zealand, American Airlines, easyJet, Air France - KLM, and several others already committed to the cause.

In our ‘Flying to Net Zero’ report, we interviewed easyJet’s Sustainability Director, Jane Ashton, who explained the airline’s net zero strategy via the SBTi.

• Read our report.