Andrew Marsh-PatrickAssociate Director - Energy

Adam FreemanEnvironment Advisor

The Role of Airports in Addressing Carbon Targets

3. Case Studies and Progress at Manchester Airport

2. Carbon Management Approaches for Airports

1. International Carbon Policies Affecting Airports

About WSP | Parsons BrinckerhoffOver the past 75 years we have delivered more than 1,500 aviation projects, at more than 600 national and international airports, in some 40 countries worldwide.

30 years of international carbon policy progression

• Carbon policies create regulatory, reputational and cost pressures • Risk and opportunities for airport operators• Link with action by airlines and the wider value chain

Carbon trading and pricing• Carbon markets now cover 16% of global emissions ($50 Bn/yr market av. $7/tCO2)• Carbon pricing adds 10-50% to energy prices (and rising)• Traded prices currently 5-10 times lower than social cost of carbon• Consider off-balance-sheet value of carbon (half of CDP companies do this)• Factor future carbon value scenarios into investment decisions (UNGC $100/tCO2)

National and regional carbon trading schemes

Carbon pricing

EU ETS

Progression of carbon trading

Airport Carbon Accreditation Scheme (24.4 million tCO2 in 2015)

63.7% of traffic

24.1% of traffic

2.5% of traffic

18.2% of traffic

2.5% of traffic

Framework to reduce airport carbon emissions - start with own operations, then expand to value chain.

Global Airport Carbon Emissions (estimated at 75 million tCO2/year)

• Worldwide flights average carbon emissions 218.8 kgCO2/pax (2015 data)

• Airport related activity total carbon emissions 21.0 kgCO2/pax (ACA 2015 data)• Airport own Scope 1&2 carbon emissions 2.1 kgCO2/pax (control 10% of total)• Airport Scope 3 supply chain emissions 19.0 kgCO2/pax (influence 90% of total)

• Most economic investment to save carbon? 10-50 €/tCO2

• Airport Scope 3 emission sources include:aircraft landing and take-off cycle (~40% of kgCO2/pax)surface access for passengers and staff (~35%)staff business travel emissions (~1%)optional wider value chain emissions (~15%)

ACA Airport Carbon Emissions Data

Zone of Wider Collaboration

Zone of Influence

Zone of Direct

Control

Integrated Approach to Carbon Reduction Opportunities1. Influence - aircraft carbon emissions• Optimisation of aircraft landing and take-off cycles (link with ICAO targets)• Aircraft use fixed ground power and pre-conditioned air systems on stand

2. Influence - surface access carbon emissions• Integration with public transport hubs• Passenger car and taxi electric vehicle charging points• Passenger smartphone apps and carbon incentives

3. Control - terminal energy use• Intelligent HVAC and lighting occupancy control on gates• Baggage handling optimisation• LED lighting of runway, apron, car parks and terminal buildings • All-electric vehicle fleet and charging infrastructure

4. Control - energy source carbon emissions• Electricity sourcing – grid versus CHP, renewables or green tariff• Energy storage – rapidly maturing battery technologies• Heating and cooling – air/water/ground source heat pumps, biofuels, deep geothermal

ICAO aviation CO2 targets

Low-Carbon Technology DevelopmentsTraditional technologies• Heating with gas boilers• Cooling with electric chillers• Fluorescent lighting• Diesel vehicles

Forecast for 2030• Heat pumps for heating/cooling• 100% renewable electricity with storage• All LED Lighting• All electric vehicles

Cost

Regulation

Reputation

Emerging technologies - mature by 2030

ABOUT MANCHESTER AIRPORT

• 26 million passengers in 2016• UK’s 3rd largest airport, biggest outside London• 70+ airlines & 200+ destinations• 2 runways, with potential 62% spare capacity• 22m people within 2 hours

Economic: 35.5%Voting: 50%

Economic: 35.5%Voting: 50%

Economic: 29%

OUR COMMITMENT

• UK Climate Change Act: 80% emission reduction 1990-2050

• Greater Manchester Combined Authority: 48% emission reduction 1990-2020

• Manchester Airport: Carbon neutrality by 2015

“We will continue to reduce emissions of carbon dioxide (CO2). Our aim is for the site to be carbon neutral for energy use and vehicle fuel by 2015.”Manchester Airport Environment Plan, 2007

ACHIEVING CARBON NEUTRALITY

• Bournemouth and East Midlands Airports since 2012/13

• Manchester Airport from 2015/16 • Emissions reduced from 72,000 tonnes CO2e in 2006 to zero in 2016• Invested £7.5m in energy efficiency projects• Installed more than 25,000 LED lights• Reduced total site-wide electricity and gas use by 56% since 1995• All electricity from renewable sources• Compensate for residual emissions through carbon offsets

CASE STUDY: REDUCING TERMINAL EMISSIONS

1. Reviewing the operational needsLighting standards – what is the actual need?

2. Introducing efficient, future proof, technology (992 tCO2)Installing ultra-efficient technologyMandating open protocolConsidering the complete asset lifecycle cost

3. Removing human factors, making the most of technology (335 tCO2)Automated control and asset condition monitoringIntroducing presence and lux detection

4. Adding the ‘Manchester touch’ (734 tCO2)Using live flight information to maximise the benefit

5. Unlocking the potential (4,400 tCO2)Expanding the scope to heating, ventilation and air conditioningRolling out the concept site-wide and across M.A.G.

Total emission saving: (6,461 tCO2)

CASE STUDY: REDUCING TERMINAL EMISSIONS

6. Generating secure low-carbon energyConvincing, solid, business cases Overcoming the barriers

7. Purchasing renewable energySupporting the renewable energy industryLong-term commitment

8. Maximising the benefit of carbon offsetsSourcing independently verified offsetsLinking offset projects to our business strategy

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BEYOND OUR OWN EMISSIONS

• Just 9% of gross carbon footprint is within our direct control1.8kg per passenger/100kg cargo10% ACA average (2kg per passenger)

• Carbon neutrality reduces our net emissions to zeroPlaces even more emphasis on indirect

emissions!

• Critical to understand and act on indirect emissions 91% (gross) – 100% (net) our emissions18.1kg per passenger/100kg cargo90% ACA average (19kg per passenger)

Scope 1, 10,641t, 2%

Scope 2, 33,109t, 7%

Passenger surface access,

203,835t, 40%

Aircraft (<3,000ft),

226,923t, 44%

Third party energy/fuel, 29,446t, 6%

Staff commuting, 4,308t, 1%

Scope 3, 464,512t, 91%

Manchester Airport gross emissions (CO2e, 2015-16)

ENGAGING OUR COLLEAGUES AND INDUSTRY

65% TOTAL ATMSIN 2016

WHY IS OUR STORY SO IMPORTANT?

• Increases shareholder value, brand reputation and stakeholder support

• Mitigates risk• Enhances customer service• Secures a ‘licence’ to grow• Sets us up for the future….

MANCHESTER TRANSFORMATION PROJECTConstraintsA. Incremental terminal development

with small spaces and many corridors

B. Inefficiency of 3 unlinked terminalsC. Single taxi lane pinch pointsD. Lack of T3 Remote StandsE. Apron/airfield developed for older

generation aircraftF. Lack of West Apron contact standsG. Inefficiency of T1/3 Apron – stand

size and gate inflexibilityH. Lack of dual taxiway to feed

runway I. Conflict between car parking and

apron expansionJ.Complex Road Network

Opportunities1. Master plan refresh2. Linking Terminal 1 and Terminal 33. Terminal 2 Expansion4. Landside5. Airfield Options6. Terminal 1 and 3 Apron7. Terminal 2 Apron

A WORLD OF OPPORTUNITY

• Our environment• Our community• Our colleagues• Our business

For further information or questions, please contact:Adam Freeman, Environment Advisor, MAGE: adam.freeman@manairport.co.ukT: +44 (0)161 489 3595

Andrew Marsh Patrick, Associate Director, WSP | PBE: Andrew.Marsh-Patrick@WSPGroup.comT: +44 (0)7881 956732