1. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 1 AVIATION: ENVIRONMENTAL RESPONSIBILITY $

2. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 2 AVIATION: EMISSIONS CHALLENGE Emissions from aviation, and forecast

3. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 3 AVIATION: IMPRESSIVE PROGRESS SO FAR CO2 from commercial airline fuel burn, emissions and efficiency

4. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 4 OUR CLIMATE ACTION Targets are at the global level – not on States or operators and targets do not mean slowing down the growth of aviation

5. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 5 1 2 3 4 THE FOUR PILLARS

6. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 6 OUR CLIMATE ACTION

7. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 7 DELIVERING ON COMMITMENTS New technology offering ever-lower fuel burn & emissions CFM LEAP reduced fuel burn by 15% Pratt & Whitney PurePower = 15-20% reduction Rolls-Royce Trent XWB shows 16% reduction in fuel burn 1,500 commercial flights, a new industry being born New aircraft rolling off production line

8. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 8 DELIVERING ON COMMITMENTS Working together to improve operational efficiency FEGP saves 100,000 tonnes of CO2 at LHR alone Continuous descents = 160-315kgs less CO2 per landing Taxiing on one engine= 15 million litres fuel a year for AA

9. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 9 DELIVERING ON COMMITMENTS Airlines saving weight throughout the aircraft iPads on one airline to save over 3,000 tonnes CO2 Nearly 30,000 tonnes CO2 saved annually Recycled materials, lightweight new seats

10. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 10 DELIVERING ON COMMITMENTS Looking everywhere for fuel saving opportunities One mid-size airline reduces CO2 by 22,000 tonnes through engine washing Winglets on the fleet saved 32 million tonnes CO2 4% reduction in fuel burn through electric taxi system

11. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 11 DELIVERING ON COMMITMENTS Infrastructure improvements: airport energy efficiency 730,000 tonnes of CO2 saved by European airports Solar power being installed at airports -300 tonnes of CO2 per year

12. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 12 Over half a million tonnes of CO2 saved in Canada through ADS-B in Hudson Bay DELIVERING ON COMMITMENTS Infrastructure: new ATM procedures RNP procedures at one airport saved 1,100 tonnes CO2 for one airline. iFlex routes saved on average 8 minutes of flight time and 2.9 tonnes of CO2 per flight for one airline

13. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 13 COST-EFFECTIVE CO 2 CUTS: 2020 Bottom-up modelling suggests a further 92mT of CO2 could be cut in 2020 with costs less than the cost of carbon

14. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 14 COST-EFFECTIVE CO 2 CUTS: 2030 Bottom-up modelling suggests a further 215mT of CO2 could be cut in 2030 with costs less than the cost of carbon

15. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 15 NEW AIRCRAFT DELIVERIES Renewing the fleet with more energy-efficient aircraft

16. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 16 NEW AIRCRAFT DELIVERIES Airlines will spend $1.3 trillion on new aircraft from 2013 – 2020

17. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 17 DELIVERIES GOING FORWARD

18. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 18 DELIVERIES GOING FORWARD: 2012 - 2031 68,000 new aircraft across a range of different sizes Source: Rolls-Royce

19. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 19 ICAO IN THE SPOTLIGHT 2010 37 th Assembly Resolution CO2 Standard for new aircraft Goals development Framework for Market-Based- Measures (MBMs) Proposals for single global MBM mechanism

20. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 20 THE THREE OPTIONS ICAO is considering three options for a single global mechanism 1 Mandatory offsetting 2 + additional revenues 3 Global emissions trading scheme

21. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 21 THE KEY POLITICAL ISSUES Framework issues: Scope of coverage: Operators registered in a state Departing flights from a state Flights within sovereign airspace Flights within FIRs Mutual consent or not Treatment of developing countries CBDR/SCRC Legal form of framework? Application of MBMs to international aviation

22. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 22 FINDING THE RIGHT SOLUTION An aviation solution to a climate problem… not a climate solution to an aviation problem.

23. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 23 AVOIDING THE PATCHWORK

24. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 24 A UNIFIED WORLD

25. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 25 PATCHWORKS LEAD TO PAPERWORK 40+ countries with emissions-related economic measures ETS, carbon and fuel taxes Around $7bn per year currently Each regime has its own reporting standards

26. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 26 EMISSIONS CHARGES IN EFFECT

27. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 27 INDUSTRY VIEW Key criteria for the industry

28. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 28 MEETING CARBON NEUTRAL GROWTH Total CO2 from air transport, mT per year forecast and offsets required to meet CNG2020 Source: IATA Economics

29. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 29 FUEL FOR THOUGHT: A QUICK WIN 10% of fuel ~80% less CO 2 1500+ flights 190 airports

30. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 30 WE’VE COME A LONG WAY 20 June 2011 First biofuel flight with passengers JAL Test flight 201120102009200820072012 1 Jul 2011 Approval 50% blend HRJ use in flights Air NZ Test flight Continental Test flight KLM Test flight TAM Test flight Interjet Test flight 23 Feb 2008 First commercial airliner test flight Late 2009 Approval 50% blend BtL use in flights

31. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 31 PASSENGER FLIGHTS ARE TAKING PLACE Over 1,500 passenger flights have taken place since certification was granted in 2011

32. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 32 GOVERNMENTS NEED TO HELP Support supply chain collaboration Establish global sustainability criteria De-risk investmentsProvide incentivesUnderstand local opportunities Foster research

33. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 33 GOVERNMENTS NEED TO HELP Prioritise biofuel sources for aviation and other ‘heavy’ users of fuel.

34. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 34 GOVERNMENTS NEED TO HELP – ATM Observe the ASBU framework for ATM modernisation Establish effective and sustainable regulatory practices Support civil/military cooperation and flexible use of airspace Support the introduction of new technologies and procedures Explore new or alternative models of service provision

35. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 35 BEYOND TODAY

36. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 36 BEYOND TODAY A comparison of aviation’s global reach in 1990 and 2010 and forecast to 2030 Passengers Passenger kilometres flown Jobs supportedAircraft in service Aircraft movements

37. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 37 TECHNOLOGY EVOLUTION The strides in aircraft technology. Available today… and tomorrow 12% - 18% lower fuel use than current 737 15% lower fuel use than current A320

38. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 38 TECHNOLOGY EVOLUTION The strides in aircraft technology. Available today… and tomorrow Advanced technology winglets CFM Leap engines More aerodynamic tail cones 12% to 18% improvement in fuel burn. Entering service in 2017, over 1,200 commitments from airlines so far.

39. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 39 TECHNOLOGY EVOLUTION The strides in aircraft technology. Available today… and tomorrow Advanced technology winglets CFM Leap or P&W PurePower engines A320 New Engine Option 15% improvement in fuel burn. Entering service in 2015, over 1,700 commitments from airlines so far.

40. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 40 TECHNOLOGY REVOLUTION The strides in aircraft technology. Available today… and tomorrow Hybrid technology aircraft Battery power charged at gate and in flight Large wing surface to assist lift generation 70% improvement in fuel burn, 2030 timeframe? Uses jet fuel (biofuel by 2030) for take-off and high-power Switches to electric power for cruise and glide

41. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 41 TECHNOLOGY REVOLUTION The strides in aircraft technology. Available today… and tomorrow Removable batteries for fast turn- around C-wing for greater efficiency Entry into service possible around 2035 100% improvement in source CO2 emissions 190 passengers Electric- powered engines

42. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 42 TECHNOLOGY REVOLUTION The strides in aircraft technology. Available today… and tomorrow Light- weight, composite structure Blended wing body Vision for aircraft of 2025. Boeing team working on NASA contest 50% improvement in fuel burn and CO2 emissions Ground noise shielded by body – 83% less area impacted by aircraft noise Geared turbofan engines

43. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 43 BEYOND TODAY A comparison of aviation’s global reach in 1990 and 2010 and forecast to 2030

44. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 44 FOSTERING RESEARCH AND DEVELOPMENT

45. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 45 CleanSky 2008 - 2017. Public private partnership between the European Commission and the aeronautical industry, was set up to bring significant step changes regarding the environmental impact of aviation. $2 billion, split between European Commission and industry. Technologies include: »SMART fixed wing aircraft »Green regional aircraft »Green rotorcraft »Sustainable and green engines »Systems for green operations »Eco-design European Commission + industry + research institutions $2 billion LoI signed for CleanSky II - $4.7 billion over 7 years, jointly invested by industry and European Commission

46. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 46 SESAR JU Definition (2004-08), development (2008-13), deployment (2014-20). As part of the Single European Sky initiative, SESAR represents its technological dimension. The SESAR programme will give Europe a high-performance air traffic control infrastructure which will enable the safe and environmentally friendly development of air transport. $2.7 billion (development phase only) split equally between European Commission, Eurocontrol and industry. The work programmes consist of a range of ATM-related technologies and operational innovations. All are aimed at helping to develop the Single European Sky. European Commission + industry + research institutions $2.7 billion

47. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 47 ProBio3 2012 - 2020 A project for the European Union Biofuels Flightpath to deliver two million tonnes of sustainable aviation biofuel by 2020. $32.1 million split between French Government and industry. The project is looking at one form of biofuel feedstock – using agricultural waste from sawdust and hay. French Government + industry + research institutions $32.1 million

48. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 48 CLEEN Five-year programme from 2012 – 2017. To develop technologies that will reduce noise, emissions, and fuel burn and enable the aviation industry to expedite integration of these technologies into aircraft. $125 million from US Government, to be matched by industry. Technologies include: »sustainable alternative jet fuels; »lighter, more efficient gas turbine engine components; »noise-reducing engine nozzles; »advanced wing trailing edges; »optimised flight trajectories using onboard flight management systems; and »open rotor and geared turbofan engines. FAA + industry + research institutions $250 million CLEEN

49. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 49 Fundamental Aeronautics Program Ongoing commitment through NASA. NASA’s Fundamental Aeronautics Program conducts long- term, cutting-edge research to address the major challenges of modern air transportation: public concern over noise and emissions; the affordability of air travel given concerns about jet fuel supplies and costs; the need for increasing mobility to meet the growth of air transportation; and the need for progress toward faster transportation. $561.3 million for three years 2011 – 2013 only. Programme themes include: »Subsonic fixed-wing aircraft »Subsonic rotary-wing aircraft »Supersonic aircraft »Hypersonic aircraft NASA + industry + research institutions $561.3 million (three year period) Aeronautics Research Mission Directorate

50. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 50 Aviation Program Group Ongoing. To support the development of environmentally-friendly technologies for use in aircraft systems. Workstreams include: »Environmentally compatible airframe technology »Environmentally compatible engine technology »Air traffic management project »Operations and safety technology Japanese Government + universities + industry + CAA

51. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 51 GARDN 2009 – 2013 (first funding period). Promoting aerospace technologies for the protection of the environment. GARDN’s activities are in support of the competitive excellence of Canadian aerospace products and services, the economic success of the member companies and the development and training of highly qualified personnel. $25 million, jointly contributed by Government and industry. Technologies include: »Source noise reduction »Source emissions reduction »Materials and manufacturing processes »Airport operations »Aircraft operations »Alternative fuels »Product lifecycle management Canadian Govt + industry + research institutions $25 million