The Carbon Footprint of Indian Aviation 2011 July 10 th, 2012
TABLE OF CONTENTS Executive Summary Introduction... 2 1 Stakeholders... 2 2 Carbon Footprint Data Collection... 3 3 Calculations & Data Reliability... 4 4 Carbon Footprint for 2011... 7 5 Policy Recommendations... 11 6 Conclusions... 12
Executive Summary This report maps in a comprehensive and detailed manner the first-ever carbon footprint of Indian aviation for 2011. It identifies the main stakeholders of Indian aviation involved in the creation of this carbon footprint, introduces the data collection process, and analyses calculation and data reliability issues. The main part of the report presents the emission sources and the results of various forms of carbon footprint calculations, while policy recommendations are also made. Overall, the following conclusions have been reached: a) The carbon footprint of Indian scheduled airlines to/from domestic destinations was 6,755,000 tonnes of CO 2. The carbon footprint of Indian scheduled airlines to/from international destinations was 5,949,000 tonnes of CO 2. Therefore, the carbon footprint of Indian scheduled airlines for domestic and international operations was 12,704,000 tonnes of CO 2. This represents a 6% increase in comparison to 2010 (11,990,000 tonnes). b) The carbon footprint of foreign airlines serving international destinations from Indian airports, which is based on Aviation Turbine Fuel (ATF) uplift from India, reached 3,623,000 tonnes of CO 2. c) The carbon footprint of scheduled Indian airlines and foreign airlines (to international destinations) represents approximately 1% of the country s total CO 2 emissions, which is significantly lower than the global average contribution of airlines, which represent approximately 2% of global anthropogenic emissions. d) In the business-as-usual scenario, emissions of Indian scheduled airlines to/from domestic destinations are forecast to grow to 14,500,000 and 111,000,000 tonnes of CO 2 in 2020 and 2050 respectively if no emission reduction measures are adopted. When both domestic/international operations of these airlines are considered, the respective forecast emissions are 27,000,000 and 209,000,000 tonnes of CO 2. e) Several Indian scheduled passenger airlines are at or below the average global level of CO 2 per RTK (i.e. 0.95 kgs), but several others exceed this value. 2
f) Emissions from Indian airport operations are estimated in the range of 700,000 tonnes of CO 2. g) Indian scheduled airlines implement reliable systems for tracking ATF consumption, while major airports implement reliable systems for tracking fuel and electricity consumption. At the same time, several Indian scheduled airlines and airports face significant difficulties in collecting data for fuel consumption from their vehicle fleets and electricity consumption. Further to these results, four main recommendations are made: a) The carbon footprint of Indian aviation for 2011 should be publicized both within the Indian aviation industry (e.g., airlines, airports, DGCA website), internationally (e.g., ICAO, CAEP meeting in February 2013), and possibly the specialised aviation press, in order to showcase the meaningful efforts of India regarding aviation and climate change. b) The development of an annual carbon footprint for the Indian aviation sector is imperative in order to implement reduction measures, monitor progress over time, and set targets if necessary. c) Additional workshops could be provided to both Indian airlines and airport operators in order to promote increased awareness concerning aviation s role in climate change, to improve data collection procedures and to encourage collaboration amongst aviation s major stakeholders. d) The DGCA Circular 1 of 2012 (2/1/2012) on the Estimation of Carbon Footprint for Developing National Carbon Emission Inventory for the Indian Aviation Sector should be adjusted/updated to better meet the needs of the aviation industry and allow airports and airlines to set-up more comprehensive and effective data collection and analysis corporate systems. 3
Introduction An important requirement in order to formulate an effective policy to address the challenge of climate change is to determine the sources and current level of CO 2 emissions, identify trends and make predictions about future growth. Section 1 of this report introduces the main stakeholders of Indian aviation involved in the creation of this carbon footprint. Section 2 introduces the data collection process, while Section 3 analyses calculation and data reliability issues. Section 4 presents the results of various forms of carbon footprint calculations in relation to the respective sources. More specifically, the analysis focuses on CO 2 emissions from the domestic and international operations of Indian scheduled airlines, the emissions from foreign airlines based on their fuel uplift in India, as well as emissions from airport operations. Predictions of future growth as well as comparisons with global efficiency averages are made. Finally, Section 5 focuses on policy recommendations. 1. Stakeholders development of the carbon footprint of the Indian aviation sector requires the contribution from various institutions regarding policy developments, data submission and collection, reviews, development of databases and other initiatives. The following organisations were mainly involved with these tasks (Figure 1): Directorate General of Civil Aviation (DGCA): Nodal point for issuing the relevant Circular, collecting data and communicating requests to airlines and airports. Airlines/Airports: Responsible for submitting information and data regarding their operations. EU-India Civil Aviation Cooperation Project (ICCA): Provision of resources and advise to produce the carbon footprint. 2
Other: Provision of additional information regarding fuel consumption, emission levels, etc. by institutions, such as the Ministry of Environment and Forests, the Ministry of Petroleum & Natural Gas, and the International Energy Agency. Figure 1: Main Stakeholders of the Carbon Footprint of Indian Aviation 2. Carbon Footprint Data Collection The methodology for the development of the carbon footprint is based on the IPCC s (2006) Tier 1 approach (i.e., aggregate ATF quantities from airlines and other sources). Information from airlines and airports is based on the DGCA s Circular 1 of 2012 (2/1/2012) on the Estimation of Carbon Footprint for Developing National Carbon Emission Inventory for the Indian Aviation Sector. According to this Circular, airlines and airports (with operations above specific thresholds) are required to submit fuel (e.g., aircraft, vehicles, generators) and electricity consumption data (e.g., offices) on an annual basis in relation to their Scope 1 and 2 emissions. 1 From February-July 2012, 19 airports and all 8 scheduled airlines (which were responsible for the transportation of more than 75 million passengers in 2011) submitted fuel and electricity consumption data respectively using specific forms for 2011 (Table 1). Additional quantitative information was collected from the 1 In accordance to the Greenhouse Gas Protocol (2004), Scope 1 represents direct greenhouse gas emissions and Scope 2 represents emissions from purchased electricity, heat or steam consumed by the organisation. 3
Ministry of Petroleum & Natural Gas. The data have been entered in a database for review and analysis. Scheduled Airlines Table 1 Airlines & Airports Private Airports Airports Authority of India (AAI) Airports Air India Group* Bangalore Ahmedabad Indore Blue Dart Cochin Bhubaneswar Jaipur (Cargo) Go Air Delhi Calicut Juhu Indigo Hyderabad Chennai Lucknow Jet Airways Mumbai Coimbatore Nagpur Jet Lite Goa Pune Kingfisher Guwahati Trivandrum Spicejet *Includes Air India, Air India Express & Alliance Air. 3. Calculations & Data Reliability This section describes how CO 2 emissions were calculated for each emission source as well as the level of data reliability. Aviation Turbine Fuel (ATF): For airlines, ATF is in most cases initially reported in the aircraft technical logs and then transferred to a corporate database. Various departments, such as Finance, Quality Control, and Engineering undertake comparisons and quality control checks (e.g., via fuel invoices). On many occasions external verifiers or other institutions (e.g., IATA) certify that the methodology used for data collection is in accordance with international guidelines. Given that fuel has historically been one of the most significant cost and operational inputs for airlines, there is a reliable system of tracking consumption overtime. Therefore, reliability of ATF data is considered high. 4
The Ministry of Petroleum & Natural Gas (Petroleum Planning & Analysis Cell), also provided ATF uplift information in India broken down into categories, such as foreign airlines, Indian airlines, and other consumption. 2 Other fuels: In the case of petrol, diesel, CNG and LPG, which are mainly used for vehicles, generators, etc., the data sources are mainly related to invoices from refuelling stations. Where possible, quality control is undertaken (e.g., Finance Department via invoices). Potential sources of error may be related to mistakes in data entry, incorrect charging of fuel type, omissions, etc. In general, the major airports have a well-developed system for data collection and analysis, which in some cases is also verified by external institutions (e.g., Bureau Veritas). However, for several airlines and airports, it has become evident that data were lacking or were not accurate due to the existence of a large number of vehicles and locations, outsourcing or shared services, and other reasons. Therefore, the quality of this data is considered as moderate/low for airlines and smaller airports but high for large international airports. Electricity: Several airports implement adequate data collection and verification processes, given the clear boundaries of operation and availability of electricity invoices. However, in many cases electricity data is not available from airlines and some airports or there is significant uncertainty about their quality and reliability. For example, some airline field offices around the country were not in the position to submit data because electricity consumption is not billed directly but is incorporated into the rent. As such, the reliability of electricity data is considered moderate/low for airlines and several airports while high for major airports. Table 2 presents the various fuel types and their corresponding level of reliability, the emission factors, and the relevant reference for the emission factor. 2 Other refers to general aviation, resellers, etc. 5
The data submitted by airports and airlines have been saved at the project database. Given confidentiality issues, only aggregate data are presented in this report. Table 2 Emissions Calculation Information Data Emission Factor Reference Reliability* Fuel Type ATF Airlines: H 3.157 tonnes of CO 2 /tonne Petrol Diesel CNG LPG Electrici ty NEWN E** Electrici ty Airlines: M/L Airports: H/L Airlines: M/L Airports: H/L Airlines: M/L Airports: H/L Airlines: M/L Airports: H/L Airlines: M/L Airports: H/L Airlines: M/L Airports: H/L 3.14 tonnes of CO 2 /tonne 3.16 tonnes of CO 2 /tonne 2.70 tonnes of CO 2 /tonne 1.49 tonnes of CO 2 /m 3 0.80 tonnes of CO 2 /MWh 0.75 tonnes of CO 2 /MWh ICAO (2011), Guidance Material for the Development of States Action Plans, p. 19 DEFRA: 2011 Guidelines to DEFRA/DECC's GHG Conversion Factors for Company Reporting, Annex 1, Tables 1a & 1b Ministry of Power (2012), Central Electricity Authority, CO 2 Baseline Database for the Indian Power Sector, Table S-1 South** * H=High, M=Moderate, L=Low. Data reliability may fluctuate significantly between airlines and airports. ** Two emission factors are available depending on the location of service provision (NEWNE: Integrated North Eastern Western & North-Western regional grids and South: Southern Grid) Meetings and discussions took place with several of the airlines and airports to clarify issues regarding data sources, validity, etc. (Table 3). In several cases, additional data and clarifications were requested on issues such as data collection procedures, examples of best practices, and calculations. Airports and airlines responded accordingly in writing. Data from different sources (e.g., airlines and Ministry of Petroleum & Natural Gas) were compared, while indicators based on passengers, Revenue Tonne Kilometres (RTK) and aircraft movements were used to assess consistency of data. 6
Table 3 Airlines Meeting Schedule Scheduled Airlines Meeting/Discussion Air India Group* 25/5/2012 Blue Dart (Cargo)** 3/5/2012 Go Air** 22/6/2012 Indigo 29/5/2012 Jet Airways 24/5/2012 Jet Lite 22/5/2012 Kingfisher 25/5/2012 Spicejet 14/6/2012 * Includes Air India, Air India Express & Alliance Air. ** Telecom. 4. Carbon Footprint for 2011 This section provides detailed information regarding the carbon footprint of Indian aviation for 2011. a) Based on fuel data consumption collected directly from the 7 Indian scheduled passenger airlines and 1 cargo airline, the carbon footprint of Indian scheduled airlines to/from domestic destinations was 6,755,000 tonnes of CO 2. 3 In accordance to international standards, international aviation bunkers (i.e., emissions from fuel use for international civil aviation) 4 should be excluded to the degree possible from national totals but should be reported separately. 5 Based on data from the aforementioned airlines, the carbon footprint of Indian scheduled airlines to/from international destinations was 5,949,000 tonnes of CO 2 in 2011. Therefore, the carbon footprint of Indian scheduled airlines for domestic and international operations was 12,704,000 tonnes of CO 2. This represents a 6% increase in comparison to 2010 (11,990,000 tonnes). 3 There is no detailed information about fuel consumption of non-scheduled airlines. Preliminary data review and their relatively low operational share in 2010 (i.e., 1%) suggest that their fuel consumption and therefore contribution to CO2 emissions is very small. 4 According to ICAO, Guidance Material for the Development of States Action Plans, (2011), p. 17, international are flights with one or both terminals in the territory of a country, other than the country in which the air carriers has its principal places of business. Domestic flights are those not classifiable as international. 5 Intergovernmental Panel on Climate Change, Guidelines for National Greenhouse Gas Inventories, Understanding the Common Reporting Framework, (1996). 7
b) Based on ATF uplift data from India obtained from the Ministry of Petroleum & Natural Gas, the carbon footprint of foreign airlines serving international destinations from Indian airports reached 3,623,000 tonnes of CO 2. Figure 2 delineates the breakdown of CO 2 emissions based on the three major airline sources. CO2 Emissions Distribu on CO2 Emissions (tonnes) in 2011 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 Foreign Airlines to Interna onal Des na ons: 3,623,000 Indian Scheduled Airlines To/ From Internaitonal Des na ons: 5,949,000 Indian Scheduled Airlines To/ From Domes c Des na ons: 6,755,000 2,000,000 0 Figure 2 Global vs Indian CO 2 Emissions In 2011, global airline operations were responsible for the emissions of 676,000,000 tons of CO 2, representing approximately 2% of global anthropogenic emissions. 6 In comparison, emissions of Indian scheduled airline operations to/from domestic/international destinations as well as from foreign airlines to international destinations represent less than 1% of India s total CO 2 emissions (i.e., 1.84 billion tonnes in 2010), which is significantly lower than the global average of 2%. 6 Air Transport Action Group (ATAG), Aviation Benefits Beyond Borders, (Geneva, Switzerland, March 2012); IPCC Fourth Assessment Report, WG III, Technical Summary (2007). 8
c) It is also important to predict the long-term evolution of CO 2 emissions over time up to 2050. This task incorporates some inherent difficulties since predictions for the growing and changing Indian market are difficult to make. However, such a forecast can set the baseline for Indian aviation s future emissions in the absence of any additional reduction measures. The Ministry of Petroleum & Natural Gas predicts an annual growth rate of ATF fuel consumption of 9.6% (2011-2017) and 7.9% (2017-2022). 7 For the period 2022-2050, this report uses a more conservative growth rate of 7%. Figure 3 suggests that the baseline emissions of Indian scheduled airlines to/from domestic destinations in 2020 and 2050, assuming no measures are taken for emission reductions, are estimated at approximately 14,500,000 and 111,000,000 tonnes of CO 2 respectively. When both domestic and international operations of these airlines are considered, the respective emissions are 27,000,000 and 209,000,000 tonnes of CO 2. 250,000,000 Baseline CO2 Emissions 2012-2050 209,035,219 200,000,000 Tonnes CO2 150,000,000 100,000,000 111,151,843 50,000,000 27,231,306 14,479,904 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 Emissions of Indian Scheduled Airlines To/From Domes c & Interna onal Des na ons Emissions of Indian Scheduled Airlines To/From Domes c Des na ons Figure 3 7 Ministry of Petroleum & Natural Gas, Petroleum Planning & Analysis Cell, Demand Projection XII and XIII Plan (http://ppac.org.in). 9
d) Based on ATF consumption and RTK data for 2011 from the 7 Indian scheduled passenger airlines listed in Table 1, it is possible to compare CO 2 emissions per RTK of these airlines with the global average for 2011 of 0.95 Kgs/RTK. 8 According to Figure 4, several Indian scheduled passenger airlines are at or below the average level while some exceed this value, indicating room for improved efficiency. Furthermore, the Indian average is higher than the global average. 1.60 Figure 3 Comparison of Indian Scheduled Passenger Airlines CO2 Emissions/RTK 1.40 1.50 Kgs of CO2 Emissions/RTK 1.20 1.00 0.80 0.60 0.40 0.93 0.93 0.94 0.95 1.06 1.11 1.11 1.25 0.20 0.00 Airline A Airline B Airline C Global Average Indian Average Airline D Airline E Airline F Airline G Figure 4 e) It is estimated that approximately 95% of aviation s emissions are emitted from aircraft while just 5% come from airport related activities. 9 Therefore, applying this assumption, it is estimated that Indian airports emitted around 700,000 tonnes of CO 2. This is consistent with preliminary data provided by 5 private airports and 14 airports of AAI that was converted to emissions using the emission factors listed in Table 2. Furthermore, electricity consumption is the main source of airport CO 2 emissions. 8 P. Steele, Air Transport Action Group, Aviation & Environment, Presentation at the 68 th IATA AGM Meeting (Beijing, China, June 2012). Calculations based on the 2011 average global fuel consumption of 37.49 litres/100 RTK. Due to confidentiality reasons the names of the airlines are not presented. 9 ACI-Europe & WSP (2011), Airport Carbon Accreditation Annual Report 2010-2011. 10
5. Policy Recommendations made: In light of the findings reported above, the following recommendations are a) This report maps in a comprehensive and detailed manner the first-ever carbon footprint of Indian aviation for 2011. Therefore, it should be publicised both within the Indian aviation industry (e.g., airlines, airports, DGCA website), internationally (e.g., ICAO, CAEP meeting in February 2013), and possibly the specialised aviation press, in order to showcase the meaningful efforts of India regarding aviation and climate change. b) The development of an annual carbon footprint for the Indian aviation sector is imperative in order to implement reduction measures, monitor progress over time, and set targets if necessary. The annual update is especially important due to the significant growth of the aviation industry but also because of unpredictable events, such as the scaling down of Kingfisher s operations (including the cessation of international operations) and the long industrial action at Air India in 2012, which will influence the level of emissions. c) Additional workshops could be provided to both Indian airlines and airport operators in order to promote increased awareness concerning aviation s role in climate change, to improve data collection procedures, and to encourage collaboration amongst aviation s stakeholders. d) During the development of the carbon footprint it became evident that Indian scheduled airlines implement reliable systems for tracking ATF consumption, while major airports implement reliable systems for tracking fuel and electricity consumption. At the same time, several Indian scheduled airlines and airports face significant difficulties in collecting diesel, petrol and other fuel consumption and electricity use data. Consequently, more time is required for the set-up of internal corporate systems for the collection, evaluation and reporting of some types of data. Therefore, Circular 1 of 2012 (2/1/2012) on the Estimation of Carbon Footprint for Developing 11
National Carbon Emission Inventory for the Indian Aviation Sector should be adjusted/updated to better meet the needs of the aviation industry without creating unnecessary burden to airlines, airports and the DGCA, while at the same time ensuring that the most important data are provided in a reliable and timely manner. The main recommendations are listed below: 1. The deadline for the submission of fuel data for the previous calendar should be set as March 31 st in order to allow adequate time for the collection and provision of data. 2. Scheduled airlines should provide on a mandatory basis total ATF consumption as well as passenger, RTK, cargo, and aircraft movement information broken down into domestic and international operations. 3. Major airports (e.g., airports with more than 10,000 annual aircraft movements) should provide on a mandatory basis electricity consumption as well as passenger, cargo, and aircraft movement information broken down as domestic and international operations. 4. Airports and airlines should be encouraged to participate in national or international voluntary emission certification or reduction programs, such as certification in accordance to ISO 14064-1, Airport Carbon Accreditation of ACI Europe & Asia-Pacific, and other similar initiatives. Relevant certificates and reports to be submitted to DGCA on an annual basis. 6. Conclusions The process of developing the carbon footprint of the Indian aviation sector for 2011 has provided a very good understanding of the sources of CO 2 emissions from Indian aviation, the availability of data from airlines and airports, the reliability of this data, as well as the required future initiatives. 12
The implementation of the policy recommendations regarding the dissemination of carbon footprint information domestically and internationally, development of an annual carbon footprint, delivery of additional workshops of airlines and airports and the update of the Circular on the estimation of India s carbon footprint together with the formulation of renewed domestic and internationally oriented policies on climate change (that are being prepared as part of the Indian Aviation and Environmental Policy), will underscore India s commitment to addressing the challenge of aviation and climate change in a comprehensive and effective manner. 13