3.6. Customer Fuel And Emissions Savings. 8.4 B litres. 5.1 B litres 3.3 B litres 13 M 8 M 21 M. Fuel savings + = GHG emissions savings

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2 Customr Ful And Emissions Savings * Ful savings + = 5.1 B litrs 3.3 B litrs * forcastd achivabl 8.4 B litrs GHG missions savings In 2015 NAV CANADA initiativs savd nough jt ful to fill 3.6 million barrls of oil * 8 M tonns 13 M tonns M tonns * forcastd achivabl 3.6 million barrls 1 CIFER 2016

3 Customr Ful And Emissions Savings Thr ar 8-10 thousand flights in Canadian airspac daily Thr ar 800-1,300 flights in Gandr Ocanic airspac daily A Boing 767 aircraft burns 5,800 litrs of ful pr hour at lvl cruis. Ovr 3.5 billion passngrs wr carrid by th world s airlins in Aviation is rsponsibl for approximatly 2 pr cnt of human inducd Co 2 missions annually. Canadian air carrirs improvd ful fficincy by 3 pr cnt in

4 Forword from th Prsidnt and CEO NAV CANADA bgan th Collaborativ Initiativs for Emissions Rductions (CIFER) rport in 2009 as a way to rprsnt th rsults of fforts by NAV CANADA mploys working with our customrs and industry partnrs, to implmnt stratgis that hlp rduc th aviation industry s nvironmntal footprint. Sinc that tim this ffort has bcom a ky ovrarching objctiv of th company. As th dmand for air travl in our modrn world continus to grow, so too, do th dmands on th industry to improv tchnologis and procsss to rduc missions and othr nvironmntal impacts. NAV CANADA mploys continu to ris to this challng, finding bttr ways of managing air traffic safly and fficintly. From modrnizing our airspac dsign to implmnting nw tchnologis, this rport highlights som of th initiativs undrtakn by our mploys to optimiz air traffic srvics, all whil improving fficincis for our customrs and rducing missions. W ar proud of ths achivmnts, and w ar proud of our mploys commitmnt to continually improv how w do things, a commitmnt that has translatd into th tchnologis w hav availabl to us today, and a continud focus on thos of tomorrow. It is that commitmnt that continus to position us amongst th ladrs in our industry. In 2015, ths initiativs rsultd in ful savings of ovr 570 million litrs and rductions in grnhous gas missions totalling 1.4 million tonns. Nil R. Wilson Prsidnt and CEO NAV CANADA 3 CIFER 2016

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6 Spotlight NAV CANADA has undrtakn numrous initiativs dsignd to rduc ful burn from aviation activity and as a rsult, lssn grnhous gas missions. Each yar w lik to put a spotlight on thos innovativ initiativs that hav mad a significant impact and that rprsnt a significant dpartur from traditional mthods. Ocanic Airspac Th airspac ovr th northrn part of th Atlantic Ocan is th busist ocanic corridor in th world, with ovr 400,000 flights pr yar. Ovr th past svral yars, NAV CANADA has collaboratd with NATS, th air navigation srvic providr in th UK, on a numbr of initiativs to incras Ocanic airspac capacity, cut ful burn and rduc carbon missions. In 2011, rducd longitudinal sparation minima (RLongSM) wr introducd. RLongSM allows air traffic controllrs to nabl proprly quippd aircraft to fly with a longitudinal sparation of fiv minuts vrsus th usual tn minuts, which incrass capacity and also nabls aircraft to us tracks that hav optimal altituds, rducing ful burn. Air traffic controllrs hav also undrtakn an initiativ calld GOFLI, in which thy idntify and proactivly offr opportunitis for aircraft to climb to mor ful fficint flight lvls. Sinc implmntation, RLongSM and GOFLI hav nabld rductions of 14,000 tonns of grnhous gas missions, and 6 million litrs of ful. Rducd latral sparation minima (RLatSM) wr introducd as part of a trial in Most aircraft transiting th North Atlantic ar sparatd latrally by on dgr of latitud, approximatly 60 nautical mils, on tracks that ar st daily basd on th traffic dmand and prvailing wathr conditions, such as th jt stram. RLatSM can sav th quivalnt GHG missions of ovr 200 flights a yar from Toronto Parson to London Hathrow. 5 CIFER 2016

7 RLatSM involvs th addition of a nw track in th cor of th NAT tracks that is sparatd latrally by a half a dgr of latitud, or approximatly 25 nautical mils from th nighbouring tracks. This allows mor aircraft to achiv thir optimum rout and flight lvl, hlping to cut flying tims and rduc ful burn and missions. Each full yar of RLatSM opration is xpctd to nabl an annual rduction of grnhous gas mission totalling ovr 10,000 tonns. Air traffic oprating on polar routs has shown a markd incras ovr th yars, incrasing 15-fold btwn 2003 and In 2015, ovr 14,000 flights usd th polar routs and it is stimatd that polar routs now nabl ovr 600,000 tonns of grnhous gas mission rductions annually. Polar Routs For air travl btwn many city pairs, particularly btwn North Amrica and parts of Asia, Polar Routs provid mor fficint routing, rsulting in rducd flight tims, ful burn and missions. Lat in 2011, latral sparation btwn qualifid aircraft flying in th polar rgion was rducd from 60 nm to 50 nm. This improvs NAV CANADA s ability to optimis routings for aircraft prior to ntring Russian airspac. A flight from JFK to Hong Kong can sav up to 2 hours flying tim, or 16,000 litrs of ful, by using polar routs. Th addition of nw Russian Airspac ntry points has also improvd capacity and flight profils. Two nw ntry points wr addd in lat 2014, and anothr two wr addd in 2015, furthr adding capacity. 6

8 Spotlight PBN Prformanc Basd Navigation (PBN) is th ky to modrnizing how air traffic is managd in our airspac. It is hlping improv fficincy, providing nhancd capacity and rducing rlianc on ground basd navigational aids. NAV CANADA stimats that PBN is currntly saving customrs 90 million litrs of ful and rducing GHG missions by 230,000 tonns annually. Shifting from snsor-basd to prformanc-basd navigation will nabl mor fficint n rout and airport oprations for quippd aircraft, rducing ful burn and associatd GHG missions through th dsign of shortr flight paths and constant dscnt oprations. NAV CANADA is working towards th implmntation of PBN by collaborating with customrs and othr stakholdrs to implmnt th most appropriat navigation spcification for ach airspac. NAV CANADA has implmntd PBN procdurs both in busy trminal and n rout nvironmnts and will continu to pursu opportunitis. Nw PBN approachs in Calgary ar saving approximatly 12 tonns of GHG pr day. That is qual to th missions from 150 cars driving from Calgary to Edmonton. As mor customrs upgrad thir avionics, vn gratr opportunitis will aris with an vntual transition towards 4D oprations (Latral, Longitudinal, Vrtical and Tim) from gat-to-gat, producing gratr fficincis. 7 CIFER 2016

9 CIFER Status Updat Initiativs Rsults Status Total Achivabl Customr Bnfits: Program Start to 2020 ADS-B Spac-basd ADS-B Albrta Airspac and Srvics Projct Ground-basd ADS-B was first implmntd in Canada to provid covrag of airspac ovr Hudson Bay in Covrag was thn xpandd to covr aras in northastrn Canada and southrn Grnland. This addd survillanc allowd for th Gandr Ocanic Transition Ara to b implmntd in 2014, pushing ocanic ntry/xit points 185 nautical mils ast ovr th North Atlantic. Th availability of spac-basd ADS-B survillanc from Airon will nabl significant fficincy and capacity improvmnts in ocanic and rmot aras whr ground basd survillanc is not availabl. NAV CANADA will us this srvic to furthr improv oprational bnfits for its customrs, bginning in 2018 in th busy airspac of th North Atlantic. Arrival and dpartur routings in th Calgary ara wr rdsignd to accommodat th nw paralll runway at Calgary Intrnational Airport which opnd in Jun En rout airways north of Calgary wr also adjustd to improv ovrall oprational fficincy in th ara. 991,000 mt CO million litrs 567,000 mt CO million litrs 45,000 mt CO 2 18 million litrs Emrging In progrss Matur Complt 8

10 CIFER Status Updat Initiativs Rsults Status Total Achivabl Customr Bnfits: Program Start to 2020 Ara Navigation (RNAV) Edmonton Rout Optimization Bagotvill Military Airspac RNAV nabls quippd aircraft to fly on any flight path within covrag of ground- or GPS-basd navigational aids within th limits of thir systm. Bnfits includ bttr accss to point-to-point oprations and incrasd opportunity for mor fficint n rout and airport oprations, rducing ful burn. Thr ar currntly ovr 1200 RNAV instrumnt procdurs in Canada. Approximatly 200 additional procdurs ar in dvlopmnt. Oprational staff in th Edmonton Ara Control Cntr workd proactivly with thir customrs to hlp build Usr Prfrrd Routs which ar optimizd to rduc flight distancs and tims in larg aras of northrn Canadian airspac that rmain without survillanc. Customrs rport rductions of ovr 20 minuts flying tim for som Asian-Amricas routs. Coopration with th Royal Canadian Air Forc has rsultd in mor flxibl us of what was prviously a rstrictd military flying ara during priods whn th airspac is not rquird for military oprations. This has rducd th nd to rout around military airspac blocks in busy n rout aras. 2,087,000 mt CO million litrs 126,000 mt CO 2 49 million litrs 53,000 mt CO 2 21 million litrs Emrging In progrss Matur Complt 9 CIFER 2016

11 Initiativs Rsults Status Total Achivabl Customr Bnfits: Program Start to 2020 North Atlantic Routs North Atlantic Routs allow aircraft arriving wstbound from Europ to transit to North Amrican dstinations using mor fficint routs. 384,000 mt CO million litrs North Warning Systm Survillanc Polar Routs Accss to data from a portion of th Dpartmnt of National Dfnc North Warning Systm provids an additional 40 minuts of survillanc for aircraft not quippd for ADS-B, flying wstbound ovr th Atlantic Ocan. Prfrrd altituds and routing rduc ful consumption and facilitat fficint loading of North Atlantic tracks. Th implmntation of RVSM in Russian airspac, th addition of nw ntry points, and changs to latral sparation rquirmnts in th polar rgion hav furthr improvd both capacity and flight profils btwn citis in North Amrica and Asia, substantially rducing flight tims and missions. In th futur, th implmntation of spac basd ADS-B in aras of th north will bring furthr improvmnts for air traffic. 141,000 mt CO 2 55 million litrs 7,841,000 mt CO 2 3,067 million litrs Emrging In progrss Matur Complt 10

12 CIFER Status Updat Initiativs Rsults Status Total Achivabl Customr Bnfits: Program Start to 2020 Rducd Longitudinal Sparation Minimum (RLongSM) and Gandr Ocanic Flight Lvl Initiativ (GOFLI) Rducd Latral Sparation Minimum (RLatSM) Bginning in 2011, RLongSM implmntation in ocanic airspac nabld proprly quippd aircraft to fly on tracks across th Atlantic with a sparation of fiv minuts, vrsus th traditional 10 minuts for non-survillanc airspac. Air traffic controllrs hav rcntly undrtakn th task of idntifying and proactivly offring opportunitis to climb to mor ful fficint flight lvls to pilots flying across th North Atlantic tracks. In 2015, NAV CANADA and UK NATS implmntd a trial of RLatSM in North Atlantic ocanic airspac. RLatSM rducs latral sparation btwn appropriatly quippd aircraft to a half dgr of latitud from a full dgr (approximatly 60 nautical mils) providing mor aircraft th ability to accss prfrrd routings in th jt stram. 26,000 mt CO 2 10 million litrs 35,000 mt CO 2 14 million litrs Emrging In progrss Matur Complt 11 CIFER 2016

13 Initiativs Rsults Status Total Achivabl Customr Bnfits: Program Start to 2020 Rquird Navigation Prformanc (RNP) Windsor- Toronto-Montral Airspac and Srvics Rviw RNP adds onboard prformanc monitoring and alrting to RNAV, which is particularly usful in prmitting short-turn approachs and significantly improvs dscnt profils, vn with paralll oprations. In th fall of 2013, nw rgulatory critria bcam availabl that nabl xpandd application and us of RNP by Canadian oprators. NAV CANADA is working with customrs and airports to dvlop additional RNP procdurs in Canada. Changs to prfrrd routings in th Toronto- Ottawa-Montral corridor and to STARs at ky airports wr implmntd in Fbruary In th fall of 2014, changs to th n rout structur north and wst of Toronto wr implmntd, followd by th adjustmnt to dpartur routs to th south in th spring of ,000 mt CO million litrs 226,000 mt CO 2 88 million litrs Emrging In progrss Matur Complt 12

14 Cumulativ Tonns (000) of CO 2 Equivalnt Avoidd Sinc 1997 and Cumulativ Millions of Litrs of Ful Savd , ,355 11, ,506 17,744 10, ,032 9, Tonns Avoidd ,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,648 6,393 5,276 4,272 3,337 2,543 1, , ,541 10,224 8,926 14,502 12, ,305 1,671 2,063 2,500 2,991 3,491 3,999 4,514 5,084 5,672 6,270 6,940 7,629 8,353 Millions of Litrs of Ful Burn Savd Projctd Tonns Avoidd Millions of Litrs of Ful Burn Savd 13 CIFER 2016

15 Annual Tonns of CO 2 Equivalnt Emissions Avoidd (000) and Annual Litrs of Ful Savd Tonns CO 2 Avoidd Milion Litrs of Ful Savd Projctd Tonns CO 2 Avoidd Millions of Litrs of Ful Savd 14

16 NAV CANADA Facilitis Whil th purpos of th CIFER rport is to rport on initiativs w hav undrtakn to rduc missions from aircraft oprations, NAV CANADA is committd to rducing th impact of our own oprations on th nvironmnt. W ar transitioning towards ISO 14001:2015, th intrnational standard hlping organizations to improv nvironmntal, sustainability, and oprational prformanc. Th following ar som initiativs w hav undrtakn: A plug-in hybrid lctric car was purchasd for us at our Had Offic location in W stimat that us of this vhicl rducs grnhous gas missions by 60 pr cnt compard to a gaspowrd vhicl of comparabl siz. W hav installd 30 lctric vhicl charging stations at facilitis across th country and continu to add additional charging stations as th nd ariss. Th NAV CENTRE has obtaind a Gold Tir rating through th IACC Grn Star crtification program. 15 CIFER 2016

17 Th nar-compltion of th ILS rplacmnt program, paird with changs to aircraft tchnology and modifications to procdurs, has nabld us to rduc th flying tim for ILS inspctions rsulting in ful savings of approximatly 560,000 litrs annually ovr 2005 valus. For visibility rasons whn oprating on airfilds, th majority of our flt of vhicls ar paintd bright yllow. W rcntly workd with our supplir to avoid xtra VOCs by having our vhicls paintd dirctly at th factory instad of having to rpaint thm aftr markt. Building automation control systms hav bn upgradd at various sits across th country to allow watr, lighting, and tmpratur systms to b automatically st back during off-pak tims. W hav also rplacd svral chillr systms with mor nrgy fficint modls. Lighting in our facilitis is bing upgradd to LED basd nrgy fficint lighting. At th Vancouvr ACC and th Toronto ACC, as wll as at th NAV CENTRE, w hav achivd stimatd nrgy savings from lighting of pr cnt. 16

18 Looking ahad with CIFER NAV CANADA continuously strivs to improv th fficincy of th air navigation systm in collaboration with our customrs and othr industry partnrs. W hav workd closly with customrs to bttr undrstand how aircraft fly most fficintly and what changs w can mak to rduc ful burn, whil nsuring th safty of th systm. This collaborativ approach is ssntial to achiving our joint goal of rducing th nvironmntal footprint of aviation and has srvd as th basis for our futur initiativs. Our collaboration with othr air navigation srvic providrs is cntral to Airon, a spac-basd ADS-B initiativ that will provid global aircraft survillanc by Th Airon projct has sn major milstons in All of th ADS-B payloads hav bn built and tstd. Thy hav bn intgratd into th first group of Iridium NEXT satllits, which ar schduld to b launchd shortly. In total, svn launchs will hlp position all th satllits in prparation for th introduction of th srvic in In addition to th safty bnfits Airon will provid, thr will b tangibl nvironmntal bnfits, as nhancd flight tracking will nabl improvmnts in flight fficincy in many parts of th world. As w implmnt satllit ADS-B, stimats indicat a savings of 300,000 tonns of grnhous gass in th North Atlantic alon. But th bnfits will xtnd far byond th North Atlantic as air navigation srvic providrs around th glob ar xamining th application of spac-basd ADS-B in thir own airspac; a tru global collaboration that will b sur to raliz safty and nvironmntal bnfits around th world. 17 CIFER 2016

19 Nots and Background Information NAV CANADA has mad vry ffort to b as spcific as possibl with rspct to stimating th achivabl bnfits. NAV CANADA has usd, among othrs, th following rsourcs: Prcntag changs in traffic movmnts: NAV CANADA Srvic Dlivry Rporting Systms Avrag aircraft ful consumption pr minut: EUROCONTROL BADA Projct EEC Tchnical/Scintific Rport No. 13/04/16-03 Grnhous Gas (GHG) rfrs to thos gass in an atmosphr that absorb and mit radiation within th thrmal infrard rang. In th Earth s atmosphr, ths gass ar watr vapour, carbon dioxid, mthan, nitrous oxid, and ozon. Som of th assumptions and formula usd for this rport includ: Projctd air traffic volums from 2016 forward ar NAV CANADA stimats. NAV CANADA stimats ar prdicatd upon customrs taking advantag of th nw srvics and procdurs in a systmatic mannr whn thy bcom availabl. Actual uptak will b affctd by th availability of quipmnt, govrnmnt crtifications, training and othr drivrs which NAV CANADA stimats in our analysis. Th Company is confidnt that th rport rasonably rflcts achivabl rductions in GHG missions and th ovrall impact of our activitis on our customrs costs. In aviation, on litr of aviation ful producs th following typs of GHG missions: CO > 2 CH > 4 N 2 O = CO 2 Carbon Dioxid kg Mthan kg Nitros Oxid kg Total CO kg * *National Invntory Rport : Grnhous Gas Sourcs and Sinks in Canada. Environmnt Canada,

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