Day: September 27, 2024

 

IATA Announces EEU Procurement Event for Airlines

Miami – The International Air Transport Association (IATA) announced at its World Sustainability Symposium that airlines will have the opportunity to buy Eligible Emissions Units (EEU) at a bespoke Procurement Event scheduled for the last quarter of 2024 on the Aviation Carbon Exchange (ACE). This event is being organized by IATA with the State of Guyana, Mercuria, and Xpansiv and is open to all airlines.

The EEUs on offer will be useable by airlines in fulfilling their Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Phase 1 offsetting obligations. These obligations cover traffic for the period 2024-2026. The EEUs must be canceled by 31 January 2028.

The event provides  an important procurement opportunity amidst ongoing scarcity of CORSIA eligible EEUs. At present, the State of Guyana is the only source of such EEUs. IATA estimates that airlines will need between 64 and 162 million EEUs for Phase 1 of CORSIA, depending on how traffic evolves. Guyana has already made sales from the 7 million issued EEUs and uncommitted volume will be available at the Procurement Event. “This is the first time such an event is being organized, and it couldn’t come sooner. States agreed to CORSIA, but so far Guyana is the only country fulfilling its obligation to make the needed carbon credits available. CORSIA is critical to aviation’s decarbonization efforts, and this event will be a clarion call that states need to make it possible for airlines to comply by releasing the requisite EEUs,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist.

This event is an important step in the development of an efficient market for EEUs, the early release of which (ahead of reporting deadlines) is essential to promoting liquidity and transparency, and to preventing a late rush on limited supply that would likely add significant costs to airlines’ decarbonization with no additional benefits.

“It takes a lot of effort to build the capabilities for generating CORSIA-eligible EEUs. Guyana is proud to be contributing, but we also want to see a large, active market. Many other countries have made progress towards creating credit supply, but before they commit to going further, they are waiting to see if the market delivers results. As the first mover in the market, we want to prove to other countries that it’s in their best interests to move forward. They should feel confident that they will receive fair prices for their credits and that accelerating the remaining work is worthwhile. This procurement event provides a further chance to create that confidence,” said Pradeepa Bholanath, Senior Director, Climate Change, Ministry of Natural Resources of the Government of Guyana.

About EEUs

Under CORSIA, airlines must purchase and cancel “emissions units” to offset the increase in CO2 emissions covered by the scheme. To maximize CO2 emission reductions under CORSIA, states must offer sufficient quantities of EEUs. The carbon offset credits that meet certain criteria defined by the International Civil Aviation Organization (ICAO) are called CORSIA EEUs and they are calculated to equate to one tonne of CO2 emissions generated through emissions reduction programs that comply with the strict eligibility criteria approved by ICAO. At the same time, the host countries must authorize the usage of those units for the purpose of CORSIA by conducting corresponding adjustments, to ensure those EEUs are not double claimed as part of a country’s Nationally Determined Contribution (NDC) under the UNFCCC Paris Agreement.

About ACE

The IATA Aviation Carbon Exchange, or ACE, is a centralized marketplace for CORSIA eligible emission units where airlines and other aviation stakeholders can trade CO2 emission reductions for compliance or voluntary offsetting purposes. The exchange is powered by Xpansiv’s CBL spot trading platform, providing a secure, intuitive destination for airlines to access real-time data with full price transparency.

Airlines trading on ACE benefit from IATA ‘s Financial Settlement Systems and Clearing House for seamless and risk-free settlement of funds. The exchange is open to all airlines, IATA and non-IATA members, and other aviation stakeholders including airports and aircraft manufacturers. Furthermore, the exchange is also accessible to carbon market participants wanting to list emissions reduction that are CORSIA compliant.

About the EEU Volume Event

Airlines will have the opportunity to purchase CORSIA Phase 1 eligible credits from the Guyana Jurisdictional REDD Program issued under the ART TREES Standard and supplied by Mercuria.

Airlines will be able to anonymously express their interest in the credits on the ACE platform. The purchase of the credits will be settled via the platform at the end of the event, with the option of using the IATA Clearing House or a Bank of America FBO (For Benefit Of) account set up in the airline’s name for the payment. Mercuria will also be able to provide transaction options for forward and multi-year purchases.

About CORSIA

CORSIA is the only global market-based measure scheme to address CO2 emissions from international aviation. CORSIA is implemented in three phases, with an initial voluntary period (2021-2026) followed by a mandatory phase starting in 2027 for most countries. The scheme also requires airlines to monitor, report, and verify their emissions to ensure transparency.

For more information on CORSIA, please refer to IATA’s CORSIA Handbook.

 

Miami – The International Air Transport Association (IATA) announced collaborations with British Airways and Microsoft to further enhance the accuracy of IATA CO2 Connect for Cargo in calculating carbon emissions. The announcement was made at the IATA World Sustainability Symposium (WSS), currently taking place in Miami.

British Airways will be contributing flight-level fuel burn data of its approximately 700 daily flights to IATA CO2 Connect. “At British Airways, transparency and consistency are essential to our sustainability efforts. By sharing our flight-level fuel burn data with IATA CO2 Connect, we’re enhancing the accuracy of CO2 emissions calculations and ensuring access, to reliable, clear information. It’s crucial for the entire industry to align on these standards, and collaboration is key,” said Carrie Harris, Director of Sustainability at British Airways.

Microsoft, building on its relationship with British Airways, will also contribute to the development of IATA CO2 Connect for Cargo by providing technical guidance and by becoming one of the first pilot testers of the service.

“Industry collaboration is essential for the decarbonization of aviation. Using CO2 Connect for Cargo will help Microsoft work with airlines to reduce emissions, make informed upstream investments with our partners, and purchase SAF and SAF certificates,” said Nico De Golia, Director of Sustainability for Microsoft Cloud Logistics. “This announcement showcases the potential impact when companies work to build a strong data foundation, driving the key actions needed to achieve our shared sustainability goals.”

 

These developments build on the March 2024 announcement that IATA is working with the Smart Freight Centre (SFC) in the development IATA CO2 Connect for Cargo.

“Strong relationships, including those announced today with British Airways and Microsoft, will help make IATA CO2 Connect for Cargo a more powerful and more accurate tool. The world is watching as aviation progresses on the challenging journey of decarbonization. Transparency and accuracy—enhanced by these partnerships—are critical.  Our common aim is to have the most accurate data about aviation’s carbon emissions. That will help the industry’s customers in managing and reporting their carbon footprints and it will inform the many strategic decisions that airlines will need to make for their own decarbonization,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist.

IATA CO2 Connect for Cargo will be available as of Q1 2025, distributed across quote & book systems, freight forwarders, shippers and airlines. It builds on the experience of IATA CO2 Connect which was launched in June 2022 to provide accurate and consistent carbon emissions calculations for passenger flights. IATA CO2 Connect uses primary data from more than 40 airlines (including British Airways) and an industry- endorsed calculation methodology (IATA Recommended Practice 1678). This differentiates IATA CO2 Connect from most tools/calculators that feed from theoretical data models.

Miami – The International Air Transport Association (IATA) is expanding the distribution network for its IATA CO2 Connect emissions calculations with Thrust Carbon, a sustainability intelligence platform provider for the travel industry. The agreement was concluded during IATA’s World Sustainability Symposium and will commence in October 2024.

“The corporate travel sector needs accurate and comparable CO2 emissions calculations for its Environmental, Social and Governance (ESG) monitoring and reporting. By working with Thrust Carbon, we will respond to this important need with calculations based on actual operational data provided by a growing community of airlines,” said Frederic Leger, IATA’s Senior Vice President Commercial Products and Services.

IATA CO2 Connect emissions calculations are based on a globally accepted standardized methodology that uses airline operational (fuel burn) data. The calculations will be then provided to Thrust Carbon, who will process these according to their individual clients’ needs. Their client base covers mainly the corporate travel sector who will be incorporating these calculations into the flight selection process, as well as use them for ESG monitoring and reporting.

“As aviation’s main trade association, IATA has a long tradition in setting industry standards, and we are thrilled with the initiative they are taking towards achieving greater transparency and sustainability. As a result of our collaboration, our corporate customers can now have easier and wider access to the CO2 Connect methodology, including their data flowing in and out of every leading travel management company and expense platform. This enables more consistency for those customers, and the ability to accurately plan carrier and route changes to help meet reduction goals,” said Kit Aspen, Founder of Thrust Carbon.