South Pole Group Carbon Offsetting Scenario Simulation
Thomas Schroder Director Marketing & Communications South Pole Group Page 2 Agenda
Recommended Best Practices for Carbon Offsetting 02
Some Aviation Sector Examples 11
Introducing the Group Exercise 19
Presentation of the results 20
Appendix and FAQs 21 South Pole Group Page 3 Some Aviation Sector Examples South Pole Group Page 4 Trends in Airlines Carbon Offsetting
Launch date of offsetting scheme Flights within EEA covered by ETS Malaysia, Air New Zealand, Atlas Blue, British Jet Blue, Copa Airlines, Kenya Airways, Mango, Sri Lankan Airways, NatureAir, Austrian South African Airlines LATAM SAS Airlines Airways (corporates)
2005-2006 2008 2012 2015
2007 2009 2013
Virgin Australlia Delta, Virgin America, United (corporate), Lufthansa-Swiss TAP Thai Delta (carbon AirPlus, TUI Travel, Airways United, neutral growth) Qantas, Jetstar, Easyjet, Japan Airlines Continental AirFrance-KLM Cathay Pacific Dragon Air
Source: South Pole Group, 2016 South Pole Group Page 5 A Leader, Aiming High
Qantas’ Fly Carbon Neutral programme
• Fuel efficient fleet, facilitated the Sustainable Aviation Fuel industry in Australia, and engaged in aircraft weight reduction initiatives. • In addition, 2.5 million tonnes of carbon emissions have been offset since 2007 • Fly Carbon Neutral programme focuses on climate change mitigation, protection of wildlife and nourishing communities. • Offer brazil nuts to enhance funding to the offset project and providing Qantas’ passengers with a sustainable snack South Pole Group Page 6 Align offsetting with strategic priorities
LATAM’s sustainability program • Stated goal to be “A leader and worldwide reference in climate change”
• A focus on environmental management system; risk management; eco-efficiency; sustainable alternative energy; internal capacity development; transparency; value chain; emission offsets; communications
• Offsets ground emissions in pursuit of carbon neutrality
Air New Zealand’s carbon offset programme • New Zealand Emissions Trading Scheme (ETS) offsetting domestic flights • Option for passengers to also offset as part of booking process • Projects protecting New Zealand’s native forestry projects South Pole Group Page 7 Align offsetting with strategic priorities Cathay Pacific’s FLY greener programme • FLY Greener Programme offsets staff business travel, carriage of passengers, and selected ground activities • Passengers can easily calculate emissions • The offset projects make a contribution in regions where Cathay Pacific has operations
KLM’s CO2ZERO Programme
• 20% reduction in its CO2 emissions per passenger by the year of 2020 • Strong focus on market for sustainable biofuels, and also involving passengers in offsetting emissions • Preference for Gold Standard Projects South Pole Group Page 8 Align offsetting with strategic priorities
Virgin America’s offsetting program • Option for passengers to offset the carbon footprint of their flights on the inflight entertainment system
• Offset HQ carbon footprint
Scandinavian Airlines’ Convention Program • Priority to target organizers of international conferences and events
• Give a range of options for the organizer to choose from South Pole Group Page 9 IATA Carbon Offset Program
• Some IATA’s members such as Thai Airways and South African Airways purchase via IATA • Includes a Carbon Calculator methodology • Offset supplier, Climate Care, provides high quality carbon credits • IATA assists airlines with the implementation • Offers a portfolio of offset projects with: – large geographical coverage – social and economic benefits for local communities. South Pole Group Page 10 RecommendedCheck List of Best Practices in Carbon Offsetting
. South Pole Group Page 11 Good practices checklist
1. Decide on focus and approach 2. Establish suitable criteria that reflect priorities and requirements 3. Plan to communicate externally and internally 4. Get ready to answer challenging questions 5. Select a reliable, valuable and reputable solutions provider / supplier South Pole Group Page 12 1. Decide on focus and approach • What is the purpose? (e.g. compliance vs. voluntary) • What is the objective? (e.g. offsetting own emissions, industry growth emissions, EU ETS compliance, as a client service offering, etc.) South Pole Group Page 13 2. Establish criteria that reflect your priorities
Make a decision on: • Standard • Type • Project location • Additional (social) benefits
Trends across all sectors: • Most used standard: 37% VCS, 12% VCS-CCB, 20% CAR, 19% Gold Standard, 12% other • Wind is most popular project type (25%) • Major project locations: US, India, Indonesia, Turkey, Kenya and Brazil Source: Ecosystem Marketplace 2016 South Pole Group Page 14 3. Plan to communicate externally and internally South Pole Group Page 15 4. Get ready to answer challenging questions
“Offsetting is greenwashing by an industry that must stop growing”
- Compensating unavoidable emissions makes a difference that would not otherwise occur.
- Moreover, it is an addition to other activities in a basket of measures, e.g. technology, operational measures (e.g. route optimisation), and sustainable biofuels.
“Do the emission reduction projects really have a positive impact?”
- Yes. Verification and certification procedures ensure additionality, sound practice and measure positive social impacts.
“Carbon projects can actually be bad for the environment”
- Certain forestry and large hydro projects are controversial because they have been harmful to local ecosystems. Supporting different project types with high quality standards is therefore advisable. South Pole Group Page 16 5. Select a reliable partner and supplier Check the reputation, service, track record and size of the supplier
Review other useful solutions and services that a partner can offer
Consider a long term supplier agreement, to reduce transaction costs
Run a tender process to engage in competitive bids South Pole Group Page 17 Benefits of pre-compliance to CORSIA
• Take action to reduce the amount of CO2 in the atmosphere and fight climate change
• Gain experience with carbon markets and providers
• Benefit from better deals and risk awareness / management
• Differentiation from competitors and demonstrating climate leadership South Pole Group Page 18 Introducing the Group Exercise South Pole Group Page 19 Presentation of the results