Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Overview Kurt Edwards Director General, IBAC NBAA BACE October 2018

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1 Carbn Offsetting and Reductin Scheme fr Internatinal Aviatin (CORSIA) Overview Kurt Edwards Directr General, IBAC NBAA BACE Octber 2018

2 Agenda CORSIA Brief Histry CORSIA in cntext Key dates fr CORSIA Am I included? What d I need t d? What assistance is there?

3 CORSIA A Brief Histry 2013 the 38 th ICAO Assembly adpted Reslutin A38-18 t develp a glbal MBM 2016 the 39 th ICAO Assembly draft text under Reslutin 39-3 adpted by the Assembly Adptin created a pathway tward the develpment f: Standards and Recmmended Practices (SARPs) in a new chapter f Annex 16 (Vl IV), mnitring, reprting, and verificatin (MRV) and emissins unit criteria (EUC) Sustainable aviatin fuels sustainability criteria 2018 (June) ICAO Cuncil adpted first editin f Annex 16, Vl. IV - CORSIA

4 CORSIA in Cntext The Business Aviatin Cmmitment n Climate Change (BACCC) was develped and published in Nvember gals 4 key pathways twards achieving its gals Guides and is a fundatin fr all envirnment/sustainability activity within the business aviatin sectr Identified market based measures as a key cntributr t emissins reductins as part f the cmmitment

5 MBMs in Cntext with the BACCC Gal 1 Imprving fuel efficiency 2% per year frm 2010 until 2020 Gal 2 Achieving carbnneutral grwth frm 2020 Gal 3 Halving ttal CO 2 emissins by 2050 relative t 2005 Offsetting is nt a licence t pllute. Rather, it is part f the basket f measures fr verall emissins reductins and cmpensates fr the ther three elements until they have their intended effects in reducing CO 2 levels, as described in the BACCC. Graphic curtesy Bmbardier Business Aircraft taken frm the Business Aviatin Cmmitment n Climate Change update

6 CORSIA Key Dates An Emissins Mnitring Plan (EMP) that will detail hw yu will mnitr and reprt yur emissins will be due by all impacted peratrs t their Administering Authrity by 28 th February 2019 twards establishing baseline Graphic curtesy IATA

7 CORSIA Key Dates The CORSIA will be applied t internatinal aviatin in several phases: By 28 February 2019 Aerplane peratrs shuld submit MRV plan t the State Administering Authrity 2019 t 2020 establishment f baseline CO 2 emissins (will apply t all peratrs carrying ut internatinal flights nt under exemptin) 2021 t 2023 a pilt vluntary phase f the 73 cuntries that have chsen t participate t 2026 first implementatin phase (same grup) 2027 t 2035 the secnd phase (all States with mre than 1% f internatinal RTKs) CORSIA will apply t internatinal flights between the participating cuntries nly. Dmestic flights will nt be cvered by CORSIA.

8 Offsetting CORSIA, a market based measure, will be a simple ffsetting scheme (as ppsed t the EU ETS, which is cap and trade ) The purchase f ffsets will be required against grwth emissins related t fuel burn abve a 2019/2020 baseline fr internatinal peratins nly (as per previus slide). Fr each unit f fuel used, 3.16 units f carbn are prduced Offsets will be required fr any emissins grwth abve the baseline (established 2019/2020) this will be initially calculated by ICAO fr each peratr acrss the civil aviatin sectr

9 Am I Included in CORSIA? All peratrs must reprt emissins frm internatinal flights annually. During the baseline, all peratrs nt excluded by exemptin must submit an MRV During the Pilt Phase, nly peratins in vlunteer states must reprt NOTE exemptins are based n rutes, NOT peratr natinality Technical exemptins frm ffsetting requirement: Operatrs with fewer than 10,000 tnnes f CO 2 emissins in flights cvered by the scheme Aircraft f less than 5,700kg MTOW Humanitarian assistance flights, firefighting etc. It is recmmended that peratrs near the 10,000 tnnes f CO 2 threshld in any given year shuld engage with their Administering Authrity (FAA) fr guidance n what t d.

10 Wh is the peratr? Operatr: Persn, rganizatin, r enterprise engaged in r ffering t engage in an aircraft peratin. Identified in Item 7 f Internatinal Flight Plan ICAO Designatr AOC reference r Registratin Number Treatment r segmentatin f aircraft peratr may be cmplicated Private peratin Managed aircraft with r withut AOC Fractinal & jint/shared wnership AOC 135 On-Demand Charter Ultimately will depend n implementatin by and guidance frm administering authrity.

11 Illustrative Annual CO 2 Emissins* Aircraft Hrs/Yr Tnnes f CO 2 Tnnes f CO 2 ACJ BBJ Bmbardier Bmbardier Glbal Express Cessna Mustang Cessna Svereign Embraer Embraer Falcn 2000LXS Falcn 7X Gulfstream G Gulfstream G Gulfstream G Anther secndary methd f quick calculatin as t whether r nt yu might be included in CORSIA is if yu use mre than 1 millin (US) gallns f fuel fr yur fleet fr internatinal peratins per year Based n average seating, stage length f 600NM *These figures are fr illustrative purpses nly and may vary frm flight t flight Als available n the IBAC CORSIA Webpage

12 What d I need t d? If yu are nt subject t exemptin, yu will need t engage with yur state f registratin and their appinted Administrative Authrity (US FAA). If yur state f registratin is ne f the states that has vlunteered fr the scheme (currently 73 States t date) and yur peratins are nt exempt, yu will be included. NOTE exemptins are based n rutes, NOT peratr natinality Yu will need t submit an Emissins Mnitring Plan (hw yu will mnitr & reprt yur emissins) t yur state f registratin by 28 th February It is recmmended that yu submit as early as pssible as the scheme starts 01/01/2019 Engage a verifier wh will assess yur MRV and emissins accunting practices. Engaged verifier must be accredited t a natinal standards authrity

13 What Assistance is There t Help Me? There will be a specific sectin f the ICAO website dedicated t CORSIA that will have tls, tutrials and vides available t assist peratrs ICAO is assisting and reducing the administrative burden fr peratrs with the develpment and publicatin f the CO 2 Estimatin and Reprting Tl (CERT); It will be based n great circle distance (GCD) r blck fuel This tl is free and available frm the ICAO CORSIA website. Once all flights are entered int the CERT, it will autmatically determine which f these are part f CORSIA and calculate ttal cvered emissins. There are als be an Emissins Mnitring Plan and Emissins Reprt templates available (with guidance n hw t cmplete the EMP t fllw in the cming weeks)

14 Cmmunicatins n CORSIA IBAC has develped a Cuntdwn t CORSIA infrmatin card dedicated t business aviatin peratrs, which will help t prepare peratrs n what t d nw Available at IBAC attended industry events and published n the IBAC Web site (see fllwing slide) The Air Transprt Actin Grup (ATAG) has develped excellent CORSIA related material IBAC and its members have access t this material. Excellent Q&A sectin Can be accessed via the IBAC CORSIA Web page. ICAO CORSIA website (as previusly mentined)

15 Cuntdwn t CORSIA Webpage CORSIA-dedicated address: crsia@ibac.rg. Central mailing fr queries and updates register nw!

16 Recap Key Takeaways Check fr yur inclusin in CORSIA thrugh exemptins EMP t be submitted by 28 th February 2019 (recmmended t submit earlier and in time fr scheme starting date f 01/01/2019) Engage with yur Administering Authrity Engage verifier Participate in Baseline during 2019/2020 (all internatinal peratins) Yu might als want t cnsider; Designating a fcal pint fr CORSIA Create a crsia@xxxxx.cm etc. fr cmmunicatin with AA s Mapping existing mnitring systems (fuel, ETS, etc.) If yu are yu eligible fr simplified prcedures?

17 Thank yu! Q & A

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