Just 43% of aviation cargo sector engaged in offsets: survey

Quantum Commodity Intelligence – The share of the global air cargo freight sector that aims to use carbon offsets to meet climate goals has barely budged in the past year, despite the onset of the first official stage of the UN's Corsia decarbonisation scheme, according to a survey of the sector by an industry group.

Asked by the survey how they will reduce or plan to reduce their carbon footprint, 43% of respondents said offsets are playing a role, up just 2% from the previous annual survey carried out by The International Air Cargo Association (TIACA).

However, the survey identified a higher level of engagement among respondents, especially the larger players.

"80% of surveyed companies confirm they already use offsets or are investigating the options. This is 85% for Group Core (airlines, airports and ground handlers)," the survey said.

The breakdown of the 43% of surveyed companies who "already use effective offsetting mechanisms" also showed that larger players (49%) were more likely to be buying credits, a figure that falls to 28% for smaller operators, according to the survey.

Air freight accounts for 155 million tonnes of carbon dioxide emissions a year, about one fifth of all greenhouse gas (GHG) emissions from the aviation sector, with a carbon intensity around 40 times that of seaborne freight, according to figures from the Massachusetts Institute of Technology (MIT).

Most of the global aviation sector is covered by the Corsia decarbonisation scheme that entered its first official stage at the beginning of this year and runs until the end of 2026.

Compliance with emissions caps is required by early 2028 and will likely be met overwhelmingly with offsets, with the aviation sector lobby group IATA estimating that demand for the three-year phase could be as much 164 million carbon credits.

Because credits used for offsetting cannot be counted towards seller countries' GHG targets under the Paris Agreement, meaningful supply of compliant credits has yet to emerge, prompting many operators in the aviation sector to maintain a watching brief, or hold off from buying.

Suppliers of credits from various carbon standards are mandated by the UN aviation agency International Civil Aviation Organization, which so far has only given final approval to two entities, with five provisionally approved, and many more at various stages in the application process.

Increasing the fuel efficiency of airlines and cargo fleets and the use of sustainable aviation fuel (SAF) are also likely to be strategies under Corsia, but the TIACA survey showed only a minority of respondents actively engaged in the use of biofuels or other renewable fuels.

"Large groups increase their focus on SAF [compared with previous survey], but only 35% of respondents confirm they are actively involved in SAF projects," the survey said.

Earlier this week, it was reported by trade journal Air Cargo News that TIACA will soon launch a carbon-offsetting programme to help smaller companies invest in six emissions reduction projects chosen by Switzerland-based carbon market specialist South Pole.

Source from https://www.qcintel.com/