ITF report: Decarbonising Air Transport
31 August 2021: The International Transport Forum has published a report that provides an overview of government policies to decarbonise the air transport sector and also looks at technologies and operational improvements.
The report recommends to:
1. Integrate clear decarbonisation requirements into government support packages helping the sector recover from the CCOVID-19 crisis
The COVID-19 crisis has impacted the entire aviation sector in a profound and unprecedented way. Many governments stepped in and supported the sector during the crisis. Government support to the sector in the aftermath of the COVID-19 crisis should be compatible with the long-term policy objectives of fostering efficient aviation markets and decarbonisation of the sector. COVID-19 recovery plans should be tied to clear decarbonisation requirements to achieve this goal.
2. Establish a clear long-term vision for decarbonising air transport by setting and monitoring emissions reduction targets aligned with the Paris Agreement
While domestic targets can and have already been embedded in many national strategies, a long-term CO2 emissions reduction target for international civil aviation is yet to be set. Important work on the subject has started under the auspices of ICAO. Governments should support these efforts, accelerate them, and drive progress towards the future long-term target by setting and monitoring their own short and medium-term targets.
3. Support an international approach to mitigating the climate change impacts of aviation while implementing decarbonisation policies domestically and on a regional level
Governments should continue working together at ICAO to develop a common approach to mitigating the climate change impacts of international aviation. However, given the urgency of addressing the climate crisis and the challenge of reaching ambitious global agreements, governments should also implement domestic policies to decarbonise the sector and consider agreeing bilateral and multilateral action with like-minded countries to accelerate decarbonisation of the sector.
4. Introduce carbon pricing in aviation to drive an efficient transition to a greener aviation sector
Carbon pricing is crucial to driving an efficient transition to a greener aviation sector. Beyond ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), carbon prices can be introduced through carbon taxes on fuel and market based-mechanisms like emissions trading schemes.
Other instruments are policies that combine CO2 pricing and regulatory mechanisms, including low-carbon fuel standards and the combination of fuel-blending mandates and non-compliance penalties. Carbon taxes on fuel can be introduced through multilateral taxation agreements or via amendments to air services agreements between specific jurisdictions. Carbon pricing is most effective when applied across the entire economy, not just a single sector. It is less disruptive if it uses progressive increases rather than sudden price shifts. Low-carbon fuel standards and fuel-blending mandates combined with noncompliance penalties can cover the entire fuel pool. Still, these instruments can also be used to target the aviation sector specifically. Finally, coordination and additionality among different carbon pricing measures need to be ensured for the policies to be effective.
5. Put in place timely and ambitious fuel quality requirements to encourage the take up of sustainable aviation fuels
To ensure adequate take up of fuels that can deliver environmental benefits, governments need to put in place fuel specifications with effective sustainability criteria. The criteria should take into account lifecycle greenhouse gas emissions as well as direct and indirect land-use changes. For international aviation, it is important that the work started on defining CORSIA eligible fuels (CEF) continues and covers new forms of sustainable aviation fuels. On renewable fuels of non-biological origin (such as electrofuels), in particular. For domestic flights, governments should consider best practice solutions, such as California’s low carbon fuel standard or the recast of the EU renewable energy directive.
6. Strengthen the effectiveness of regulatory frameworks to further energy efficiency improvements of aircraft
Governments should continue requiring improvements in the fuel efficiency of new aircraft through imposing progressive fuel efficiency standards. Fleet-wide national fuel efficiency standards or fleet renewal schemes can also accelerate a shift towards more energy-efficient aircraft while ensuring compliance with the internationally agreed improvements established for new aircraft by ICAO. Fleet-wide standards can also be designed to continue to ensure cost-effective fuel efficiency improvements over time. Energy efficiency improvements can also ensure greater cost competitiveness for the sector.
7. Encourage research, development and deployment of alternative propulsion systems and clean fuels, supported by clear policy frameworks for de-risking industry investments to ramp up fuel production
To enable cost-effective decarbonisation of air transport, governments and industry should work together to enhance the availability and affordability of more energy-efficient aircraft and cleaner energy. Governments can accelerate the development and deployment of new technologies that will enable decarbonisation of the sector by providing funding for research as well as government incentives for the take up of new technologies by the sector. Such support can come in different forms, including direct research grants, development of government research programmes, and de-risking industry investments in ramping up the production of a sufficient quantity of sustainable and low carbon fuels. Support can be funded from general government budgets or with earmarked revenue from carbon taxation. Ambitious, mission-oriented research and innovation programmes for net-zero flight by mid-century are required.
8. Factor in the non-CO2 climate impacts of air transport when designing decarbonisation policies
Non-CO2 greenhouse gas emissions from air transport have a significant climate forcing impact and need to be mitigated. As these impacts are not yet fully quantified, governments should support further research on non-CO2 greenhouse gas emissions from air transport. In the meantime, swift policy action can foster the adoption of available technologies to mitigate non-CO2 impacts of aviation. Among these are quality improvements for conventional fuels, high-quality sustainable aviation fuels and targeted flight diversion to avoid ice-supersaturated areas.
You can access the report here.