- ETS covers only 11% of commercial aviation emissions in 2020 -
- Premium seating and older aircraft impact emissions efficiency -
Independent carbon emissions analysis for airlines and lessors, aircraft portfolios and regions is now easily accessible following the launch today of a Carbon Emissions Calculator (CEC) by the leading aviation data and advisory company IBA.
The CEC is the first of its kind, and integrates IBA’s proprietary fuel-burn assessments with real-world flights and fleets data from its InsightIQ intelligence platform. It is the only carbon modelling tool currently available that enables users to calculate and compare the emissions of airlines and lessors, entire aircraft fleets and regions over different periods of time, in addition to supporting analysis of specific commercial aircraft models and routes.
Subscribers can also map emissions geographically and gauge the potential impact of adding varying percentages of different types of Sustainable Aviation Fuel (SAF).
The new tool is designed to help the aviation community evaluate the comparative performance of different operators and lessors, perform due diligence on new asset purchases or monitor compliance with environmental targets, and understand whether the right aircraft are being deployed across the right routes for environmental optimisation.
Commenting on the launch, Phil Seymour, President and Head of Advisory at IBA, says: “Carbon emissions and ESG are at the top of the aviation finance agenda. Total emissions are clearly most impacted by the volume of flights. However, the aircraft and engine technology generation, and the seating layout are big drivers of overall efficiency on a Co2 per seat mile basis.”
Data from the CEC shows that across the industry as a whole, there was a 46% drop in total Scope 1 emissions from 2018 to 2020 reflecting the significant reduction in flights due to Covid-19.
However, in 2020, only 22% of these emissions were generated by flights originating in Europe. The EU has the only continent-wide emissions reduction scheme – the ETS – but this only accounts for intra-European flights reducing the scheme coverage to only 11% of global emissions in 2020. This demonstrates the task ahead for co-ordinated global regulatory action to have a material impact on reducing global aviation emissions.
More significantly, over the last 3 years, the top 30 airlines account for over 50% of the total aviation industry’s Scope 1 emissions. Also, 42% of total Scope 1 emissions in 2020 were from aircraft of 10+ years of age.
Commenting on the data, Phil Seymour adds: “Emission efficiency is closely tied to the age of aircraft with new generation technology offering significant enhancements over previous generations. The faster large airlines can upgrade their fleets, the faster emissions efficiency will improve.
“The three most efficient of the top 30 airline operators on a Co2 per seat mile basis in 2020 are all low-cost carriers and have an average in service fleet age of only 7 years, compared to the top 30 average of 11 years. This reflects both their newer generation fleets and more efficient cabin layouts.
“The more efficient low-cost airlines with their denser seating layouts may put pressure on traditional carriers to reduce their premium seating to improve overall efficiency.”
Summing up, Phil Seymour, says: “Reducing total emissions from aviation is a long-term social and technological challenge. However, there is much the aviation finance industry can do in the meantime to promote the use of efficient, new generation aircraft and engines to help limit emission growth.”
IBA’s Carbon Emissions Calculator readily provides investors, banks and lessors with unbiased and independent data and the insights behind it. It is an invaluable comparative tool that enables them to understand and demonstrate their green credentials, and ensure green financing responsibilities are fulfilled. Its comprehensive data and dynamic functionality can also support operators’ and lessors’ fleet selection decisions and competitive analysis.
More information about IBA’s Carbon Emissions Calculator is available here.
IBA has over 30 years’ experience in delivering independent, expert business analysis and data on the aviation sector. Established in 1988, it provides a wide range of services including InsightIQ, a one-stop intelligence platform combining speed, accuracy, visual analytics and intuitive navigation.
IBA advises prominent investment funds and banks, aircraft leasing companies, operators, manufacturers and MROs. In January 2020, IBA was named ‘Appraiser of the Year’ by Airline Economics.
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Despite its best efforts, the Covid-19 pandemic failed to deflect all stakeholder interest within the aviation industry away from environmental and sustainability concerns. In January 2020 IBA published its well-received ‘Aviation and the Environment’ report and in response to market demand, we have just released our 2021 version. Download your copy here In this short podcast, IBA’s Phil Seymour (President & Head of Advisory) and Tim Boon (Aviation Analyst and ESG Specialist) discuss current regulation and compliance information, emerging green finance initiatives including sustainability loans and OEM investment and research activity. Additionally, the pair share details of IBA’s latest initiative, our InsightIQ Carbon Emissions Calculator. Available in the coming weeks, this new module will support the market with compliance, stakeholder engagement, green financing and efficiency by measuring carbon emissions across all commercial aircraft. Request more information here We hope you find this podcast insightful and relevant to your business. If you have any further questions, comments or feedback please contact: Tim Boon
In response to widespread demand, IBA’s Tim Boon delivers an update on sustainable aviation finance and green initiatives for 2021. This popular report provides the latest on ESG regulation and compliance, green financing initiative and new developments in SAF and OEM advances.
As the aviation industry begins to wake from its slumber in a post Covid-19 landscape, many of us have wondered what the future holds for new aircraft technologies. How will the leading OEMs and their respective stakeholders address commitment to a carbon neutral aviation industry by 2050? In recent years, development of battery-powered aircraft concepts has continued, various new start up ventures exploring this propulsion technology, its possible applications and the regulatory hurdles and infrastructure challenges battery-powered aircraft face. There have been no concrete commitments to purely electric aircraft by the leading OEMs owing to the energy density (or lack thereof) vs weight penalties inherent in flying intercontinental routes. This, however, doesn’t mean there isn’t a place in the market for electric propulsion; it has great potential for short regional flights with smaller capacity cabins operating out of airports and aerodromes that would typically not accept commercial traffic.