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19 June 2008 page 1 FRA CP/U Waibel / Haag ICAO Workshop Aviation and Carbon Markets Montreal Dr. Karlheinz Haag Head of Environmental Issues ICAO Workshop Aviation and Carbon Markets ICAO Headquarters, Montreal, Canada 18 and 19 June 2008 Carbon Offsetting

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19 June 2008page 1

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

Dr. Karlheinz HaagHead of Environmental Issues

ICAO WorkshopAviation and Carbon Markets

ICAO Headquarters, Montreal, Canada18 and 19 June 2008

Carbon Offsetting

19 June 2008page 2

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

Agenda:

Emission - CalculatorWhat are the emissions per pax and journey?

CO2 or MultiplierWhat is the most relevant gas ?

Carbon Offsetting Partner: myclimateStandards for projects

19 June 2008page 3

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

Myth: Aviation the fastest growing sector

19 June 2008page 4

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

Agenda:

Emission - CalculatorWhat are the emissions per pax and journey?

CO2 or MultiplierWhat is the most relevant gas ?

Carbon OffsettingPartner: myclimateStandards for projects

19 June 2008page 5

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

What emissions are caused by a single passenger during one flight?

An easy question ! ??? – however, many answers have been given in the last years

Fact is, the fuel use of a flight depends on many parameters …

… and almost none of them are constant… or precisely predictable… but rather vary from day to day… from flight to flight… and from airline to airline

19 June 2008page 6

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

What influences the emissions of a single flight?

a/c type

load factor

engine

maintenance

holdings

meteorology

passengersfreight

payloadATM

flight distance

flight profile

detour

seat configuration

Origin Destination

The only solid parameter is origin and destination – all others may vary from flight to flight!

winds

drag and draft

19 June 2008page 7

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

How to design an emission - calculator?Our requirements and our approach

transparentaccurate

simple

no theoretical assumptionsreal operational dataincluding all flight phases from gate to gate

easy to understand for customers

no differentiation of single parameters which can not be influenced by the passenger anyway

19 June 2008page 8

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

We have analyzed 58,000 flights in 2006 with respect to fuel use from gate to gate

averageSFC of LH-companies

19 June 2008page 9

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

Operational flight data reveal…

In general, high variability of fuel use even on same distances (city pairs)Short haul flights show higher variability than long haul flights

Our conclusions are…

Administrational efforts to monitor single flight events would be tremendousPassengers would be confused if the compensation costs would differ from flight to flight on one single destination.Average operational values applied on a longer time scale (year) do cover the real CO2 emissions quite nicely since up’s and down’s are counterbalanced.

19 June 2008page 10

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

Calculation method

We use real fuel consumptions from gate to gate to cover all flight phases from taxiing on ground to detours and holdings in the air.

We use real numbers of passengers on board.

We use a statistical approach to average out the highly variable parameters like meteorology, ATM and changes in a/c operation.

We use a mathematical best fit which describes the emissions per passenger-kilometer dependent on the flown distance

We focus on CO2 only

CO2pkm

( flight distance) x flight distance = CO2 per passenger and flight

19 June 2008page 11

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

Agenda:

Emission - CalculatorWhat are the emissions per pax and journey?

CO2 or MultiplierWhat is the most relevant gas ?

Carbon offsetting projectsPartner: myclimateStandards for projects

19 June 2008page 12

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

We offer CO2 compensation – and nothing elseWhy?

CO2 is the key Kyoto gas. Due to its mean lifetime of 60 – 100 years it has long lasting impact

Multiplier is based on “radiative forcing” which is no adequate parameter to assess future climate change.

Effect of contrails and subsequent contrail cirrus clouds are still afflicted with large error bars.

From Forster, P. et al. (2007) Changes in Atmospheric Constituents and in Radiative Forcing.

in Climate Change 2007:

The Physical Science Basis. http://www.ipcc.ch

"One alternative, the RF index (RFI) introduced by IPCC (1999), should not be used as an emission metric since it does not account for the different residence times of different forcing agents."

19 June 2008page 13

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

Agenda:

Emission - CalculatorWhat are the emissions per pax and journey?

CO2 or MultiplierWhat is the most relevant gas ?

Carbon OffsettingPartner: myclimateStandards for projects

19 June 2008page 14

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

high project quality – CDM and/or Gold Standard

international reputation through long experience and high-quality projects„myclimate’s high project standards, its transparency and good calculator makes it an excellent choice for offsetting air travel emissions.”(Tufts University, MA/USA, 2007)among top 3 out of 170 offset providers worldwide (EndsReport, 2008)

broad national and international network

non-profit foundation

Carbon offset projects and criteria's for a partner selection

19 June 2008page 15

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

Carbon offset projectsand its standards

permanencyrenewable energy & energy efficient technologies

additionalityprojects need financial means of emission reduction sale

sustainabilityinclusion of and benefits for the local population, jobs, technology transfer, improves air-, water- and soil-quality

Important: CO2 mitigation should be realized in a limited time (some years)

19 June 2008page 16

FRA CP/UWaibel / Haag

ICAO Workshop Aviation and Carbon MarketsMontreal

Thank you for your attention!

Dr. Karlheinz HaagHead of Environmental Issues

Lufthansa [email protected]

069 – 696 94974