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ATI and the Environment

The air transport industry (ATI) is a contributor to climate change, mostly through emissions produced by aircraft engines. Much of these emissions are emitted at high-altitude, which give rise to specific environmental concerns regarding their global impact. Emissions at ground level significantly impact air quality in and around airports.

The ATI contributes to climate change in other areas as well - but none has the impact, urgency or financial implications as emissions / fuel.

> Watch the latest Webcast on the Environment from SITA

Governmental regulations

With no current legal framework in place to curb carbon-dioxide (CO₂) emissions in the ATI, consumers and environmental activists are pressuring governments to establish regulations that will limit the growth of such emissions.

Leading players in the ATI have implemented voluntary schemes for passengers to offset their CO₂ emissions when they purchase flights. However, fewer than 5% of passengers consider environmental impact or alternative modes of transport when making reservations and planning trips. Only 2.9% of passengers offset their carbon emissions on a regular basis - and up to 90.5% have never done it.¹

With no global regulatory scheme in place, national and regional schemes are being implemented to curb greenhouse gas emissions by the ATI. For example, the European Union has agreed to include internal European flights and international flights to and from the EU within the European Emission Trading Scheme (EU ETS) by 2012.

What is an emission trading scheme and how does it work?

An emission trading scheme is an economic-driven measure used to control pollution that provides incentives for reducing emissions.

A central authority (usually a government or international body) sets a limit or cap on the amount of a pollutant that can be emitted. Companies or other groups are issued emission permits (also known as 'allowances'), which limit them to a certain level of total emissions. The authorities may allocate some of the allowances through an auctioning mechanism.

Companies that need to increase their emissions must buy permits from those who emit fewer emissions. The transfer of allowances is referred to as a trade. In effect, the buyer pays a charge for emitting beyond its cap, while the seller is rewarded for having reduced emissions.

The EU ETS sets the cap of CO2 emissions by the ATI at the average of 2004-06 levels.

 

_{1. SITA / ATW 2008 Passenger Self-Service Survey}

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