The latest contributions on Aviation policy in Europe.

With more than 7,500 aircraft entering service in Europe over the next two decades, the European Union has to move fast into the next phase of the Single European Sky.

A few days ago the Commission adopted two new regulations to advance the implementation of both the SES and the deployment phase of SESAR, the programme to develop the technology to implement and support the SES.

The Commission announced that it will use four mechanisms to support the SESAR deployment strategy. The deployment programme will provide clear directions for implementation. Governance mechanisms will ensure that all the key stakeholders are involved in the process and together can define and drive the deployment roadmap. Common projects will help to ensure that member states collaborate successfully. And targeted incentives will support the implementation of SESAR’s common projects. The first common project is set to be adopted early in 2014.

When fully deployed, SESAR will undergird a modernised air traffic management system that is intended to triple current airspace capacity, increase safety by a factor of 10, cut airline costs by 50 percent, and reduce air travel’s environmental impact by 10 percent – as the Commission points out in its press release.

Also the Commission laid out the framework for the next phase of SES performance target negotiations in 2015 to 2019. The negotiations will set binding targets for member states to deliver better ATM services under SES. These targets are intended to reference the four benchmarks (capacity, safety, costs, and environmental impact) and must focus on outcomes rather than inputs to ensure ATM progress is being made.

Boeing believes that SESAR’s implementation will be most successful with industry-wide collaboration and partnership. Therefore, the process should include participation by all stakeholders, including airlines, air navigation service providers, manufacturers, and military operators. As an active SESAR participant itself, Boeing fully supports the development of the Single European Sky. It also emphasizes the importance of cooperation between the EU SESAR and the US Federal Aviation Administration’s NextGen ATM modernisation program — the two systems must be interoperable to meet the needs of the 21st century economy and air travellers. Both SESAR and NextGen should be deployed and linked in such a way as to ensure competition and cost-efficiency for all users across the airspace.

The European Parliament overwhelmingly decided on 16 April to “stop the clock” on including flights arriving in and departing from the EU in the Emissions Trading Scheme. Meeting in Strasbourg, MEPs voted 577 to 114 to adopt a March 26 vote by the Environment Committee to suspend for one year the enforcement of ETS provisions for international flights. The decision, backed by member states on 22 April, entered into force on 25 April when it was officially published in the EU Official Journal.

Parliament leaders were keen to emphasize that the suspension was not a repudiation of the core principles of the ETS. They also emphasized that it is for one year only — with the firm intention of jump-starting multilateral emissions-control talks through ICAO, the international aviation body. MEPs believe that this action represents a good-faith contribution toward making progress at ICAO, with a goal of having a roadmap to an international agreement by the time ICAO holds its triennial General Assembly in 2016.

The aviation industry is joining forces to move talks forward. On 13 May, the Air Transport Action Group will host the Aviation and Environment Summit in Montreal, with participation from IATA, ACI, CANSO, and ICCAIA and sponsorship by several aerospace firms. In September and October, ICAO’s General Assembly will convene, with sustainability on the agenda. The Parliament’s vote is thus a step toward reducing tension and providing the space needed for these dialogues to proceed.

The proposal to address the issue of indirect land use change (ILUC) in European biofuel policy has advanced in the European Parliament, as MEP Corinne Lepage of France released her draft report in the Environment Committee. ILUC refers to unintended consequences of making biofuels—for example, if a policy preference for corn ethanol creates incentives for farmers to replace carbon-absorbing forests with cornfields, or to raise food prices by diverting corn to fuel. Some biofuels—often called “second generation”—made from non-edible crops like jatropha and algae that can thrive on currently non-productive land, avoid many of these ILUC effects.

Lepage’s proposal will incorporate specific ILUC “factors” into the sustainable criteria of the EU’s Renewable Energy Directive and Fuel Quality Directive. This will account for differences in biofuels performance, while the Commission suggested to cap at 5 percent the share of conventional biofuels (biodiesel and bioethanol) in transport under the Renewable Energy Directive. Public subsidies for these biofuels will end by 2018.

To promote second-generation biofuels, the report calls for a carveout for woody biomass and agricultural residues. Lepage sought to protect prior investments, so she would delay until 2018 the ILUC factors on each member state’s share of biofuel consumption in the year 2010—provided that the grandfathered biofuels result in greenhouse gas reductions of at least 45 percent.

The grandfathering would benefit biodiesel, which accounted for 80 percent of European biofuel production in 2010. According to some news reports, however, bioethanol performs better on Lepage’s ILUC factors than biodiesel, evening out the advantage.

The Sustainable Aviation Fuel Users Group (or SAFUG, a consortium of airlines and aerospace firms of which Boeing is a part) has called for policymakers to consider mechanisms that reduce ILUC effects of biofuels. SAFUG has called for the EU to limit the share of food crop-based fuels; its members are committed to biofuels that do not displace food crops. SAFUG also calls for the European Parliament to establish incentives for biofuels that are certified as low-risk for ILUC effects, using a model like the Low Indirect Impact Biofuels (LIIB) standard. SAFUG members also support incentives for biofuels made from waste, algae, and ligno-cellulosics — but no further incentives for feedstocks.

The aviation industry is committed to developing high-efficiency, second-generation sustainable biofuels. These fuels can reduce the sector’s carbon footprint, provide a more diverse (and thus resilient) supply of energy, and develop a new, environmentally progressive industry. And as the industry develops these fuels, it is taking care to ensure they avoid ILUC effects.

For example, KLM Royal Dutch Airlines took a bold step for sustainable aviation last month by launching the first in a series of “Optimal Flights” using a 777 between New York and Amsterdam. Boeing is proud to be their partner in this effort that combines renewable fuels with advanced technology. This means not only using sustainable biofuels, but other smart technologies and concepts to improve the airplane’s operational efficiency while saving fuel and reducing carbon and noise emissions. Basically, we’re taking multiple flight efficiency projects and rolling them into one program to create the most environmentally progressive flight possible.

The Sustainable Aviation Fuel Users Group (or SAFUG, a consortium of airlines and aerospace firms of which Boeing is a part) is of the view that, because of the potential negative impact, ILUC must be addressed in government policies promoting the production of sustainable fuels. SAFUG has called for policymakers to consider mechanisms to lower the contribution of high ILUC risk biofuels and create incentives for sustainable biofuels that have been certified as low risk of ILUC. Any legislation addressing ILUC should consider the possibility of project-level mitigation approaches, including, but not limited to, the Low Indirect Impact Biofuels (LIIB) methodology currently under development by Ecofys, EPFL and the World Wildlife Fund (WWF).

While a lot of attention gets focused on the emissions from aviation released by aircraft in the skies above us, it must also be remembered that a lot of good work is taking place on the ground too – particularly at airports. One of the projects that we are very proud of is led by our colleagues at Airports Council International Europe. Airport Carbon Accreditation was launched in 2009 and has since grown to be what I consider a gold-standard  carbon management certification programme for airports.

Airports across Europe have been leading the way and Airport Carbon Accreditation has now started rolling out in Asia-Pacific as well, with six airports there already taking part and another two to be announced shortly. ACI Europe yesterday announced that 71 airports in Europe are accredited at one of the four available levels of certification: ‘Mapping’; ‘Reduction’; ‘Optimisation’; and ‘Neutrality’. Impressively, the accredited airports represent more than 56% of European passenger traffic. The step-by-step process provides airports with a common framework for active carbon management with measurable goal posts.

While the total carbon emissions reduced through Airport Carbon Accreditation will be announced at the ACI annual meeting in June, I can tell you it is an impressive figure.  You can view a full list of the airports accredited in Europe and the levels of their accreditation here.

I also think it is a significant achievement that the programme has been endorsed by ECAC and EUROCONTROL and received support from the European Commission and ICAO.

For further information, visit the website www.airportcarbonaccredited.org or check out @AirportCO2 on Twitter.

On 26 February, the European Parliament’s Environment Committee adopted the Commission’s proposal to temporarily “stop the clock” on the enforcement of its aviation ETS for international flights with respect to 2012 emissions.

Last year, carbon dioxide emissions from aviation began to be included in the ETS, but the implementation has been highly controversial. EU trading partners like the United States, China, and India objected that airlines bearing non-European flags would be included in the ETS.  According to the Environment Committee amendments to the proposal suggested by the Commission:

• First, the derogation should apply for a maximum of one year and can be prolonged only if “clear and sufficient” progress is made at the ICAO Assembly in September 2013.
• Second, EU member states should use revenue from the auctioning of allowances to supporting research on and adaptation to climate change. The proposal is now due for consideration by the full Parliament in Strasbourg in April.

The aviation industry supports a global framework under ICAO as the most appropriate means to address CO₂ emissions from international aviation. Boeing believes as well that the best approach to reducing aviation emissions is a global approach and is of the view that the Commission’s “stop the clock” proposal represents a pragmatic step in the direction to allow a more constructive dialogue in the ICAO negotiations towards a global sectoral agreement on aviation emissions.

On 20 February, the Environment, Public Health and Food Safety Committee of the European Parliament held a workshop to address the ILUC effects of sustainable biofuels. The workshop addressed a European Commission proposal to transition from “first-generation” biofuels (sourced from foodstocks like corn and soybeans) to “second-generation” fuels (which are not sourced from edible crops). This proposal would set a 5 percent limit on the proportion of biofuels that can be sourced from feedstocks, end subsidies for first-generation biofuels by 2020, impose a greenhouse-gas-saving requirement of 60 percent for biofuels production processes starting next year, and create new values for ILUC effects from major crop groups. EU member states’ energy ministers are expected to discuss the proposal on 22 February.

The aviation industry supports balanced and thoughtful regulation of chemicals—with a goal of across-the-board public safety. As the Competitiveness  Council meets today, with Europe’s REACH regulations on the agenda, the industry hopes it will keep in mind that balanced approach. The EU REACH (short for review, evaluation, and authorization of chemicals) regulation came into force in 2005. The aviation sector supports its overall goals, but it has some concerns about potential bans on substances that have critical use in aerospace often with safety implications.

Chemicals, like chromates for example, prevent corrosion and wear on aircraft fuselages and components. Many of these products are essential to aviation safety—indeed, their use is necessary for airlines and aerospace firms to certify compliance with the safety agencies’ requirements.

In some cases, these products have no viable near-term replacement. Boeing and other industry partners are engaged in intense research to find next-generation agents, but there is currently no single product that can replace the full usefulness of these chemicals. And even if a replacement were to become available soon, it would need to be fully tested and certified for safety and phased in slowly in order to be compatible with aircraft already in service.

It will be important therefore that the Commission and the Competitiveness Council consider the specific situation of aerospace in the REACH process. These chemicals are absolutely necessary for safety, and more coordination and dialogue with industry and the safety authorities are necessary to prevent deeply adverse effects on the competitiveness of European airlines and aerospace firms.  A balanced approach to chemical safety will take the bigger picture into consideration.

Starting tomorrow, air traffic management (ATM) professionals, policy makers, and thought leaders from around the world will gather in Madrid for the first annual World ATM Congress, a new joint meeting of the Civil Air Navigation Services Organization (CANSO) and the Air Traffic Control Association (ATCA). CANSO and ATCA together combine the private companies and government entities that provide and oversee ATM in various countries, along with ATM professionals and the individuals and firms that support them.

This first-ever joint congress comes at a critical moment for the ATM industry. In the United States, the “NextGen” process—an ATM modernization effort that includes operational efficiency efforts to maximize US airspace for safety, efficiency, capacity, while focusing to minimize environmental impacts—has been hampered by fiscal challenges and an excessively partisan atmosphere in the U.S. Congress. In the European Union, member states have been slow to move on the ambitious second phase of the Single European Sky project, which includes efforts to establish uniform performance regulations for Europe’s air navigation service providers (ANSPs) and consolidate the regional “functional airspace blocks” that simplify navigation dramatically, compared to the country-by-country ATM that used to prevail.

Given these challenges, what should you watch for in the discussions in Madrid? Look for:

• Announcements of policy developments in the U.S. and EU. On Tuesday, key policymakers—Matthew Baldwin from the European Commission and Michael Huerta of the Federal Aviation Administration—will offer their perspectives in back-to-back talks. Pay attention for any news on SES II or NextGen.
• Discussion of what the ATM sector can learn from the last major worldwide breakthrough in aviation: ETOPS, the extended operations framework that allowed the revolutionary development of long-range, twin-engine jet aircraft. On Tuesday, several experts will review ETOPS’ lessons for how to shepherd a technological innovation through regulatory and safety challenges.
• Pros, cons, and dynamics of introducing greater private-sector competition into the ATM sector. In many countries, ATM has been privatized or commercialized such that a private company serves as the ANSP while a government agency regulates its provision of services. Representatives from CANSO and local ANSPs will address how best to structure competition in the sector.

You can view the full conference agenda here. What do you think are the greatest challenges to air traffic management in Europe? What should be on the agenda at World ATM Congress that isn’t? Offer your thoughts in the comments, and stay tuned for updates on the conference as it progresses.

On 17 October 2012, the Climate Change Committee formally endorsed the Commission’s guidelines on “Biomass Issues in the EU ETS,” which are part of a series of documents intended to provide guidance to Member States on different aspects of the ETS Monitoring and Reporting Regulation. This includes guidance on how to implement – consistently across the Member States – a purchase-based methodology to account for biofuels use in the aviation ETS Directive.

Article 53 of the Regulation acknowledges that aviation biofuels should be accounted for on the basis of “fuel purchase records” and states that “the methodology shall be based on the guidelines provided by the Commission to facilitate its consistent application in all Member States.” The aviation industry welcomes this development, as it will allow to fully exploit the potential CO2 reduction of the “zero rating,” provision in the aviation ETS and help support aviation biofuels development and commercialization. Such a provision, by deeming emissions from sustainable biofuels to have a “zero rating”, represents for aircraft operators an incentive to use biofuels as they would not need to purchase the equivalent volume of CO2 allowances.

The guidelines are available here.

The Commission recently published a proposal, amending the Renewable Energy Directive and the Fuel Quality Directive, with the aim to start the transition to biofuels that deliver substantial greenhouse gas savings when also estimated indirect land-use change emissions are reported. The Parliament and the Council will have now to adopt the proposal while a debate has kicked off among stakeholders.

From the aviation perspective, sustainable biofuels will play a vital role in reducing the carbon footprint of aviation and meeting the industry’s global target of carbon neutral growth from 2020 and a 50% reduction in net CO2 by 2050. Sustainable aviation biofuels do not compete with food sources, require minimal land, water and energy to produce, and provide economic value to the communities where they are grown. Since first-generation biofuels may compete with food stocks, Boeing has focused on sustainably grown, advanced-generation biofuels from a portfolio of different feedstock alternatives. We are continuing extensive research and lifecycle analysis to verify sustainability of feedstocks and processing methods. Meanwhile, sound and timely policy measures are key to advance aviation biofuels development and commercialization. Aviation will remain dependent on liquid hydrocarbon fuels for the long-term and therefore the development of sustainable biofuels should be a priority of government policy.

This week,  and just after the ICAO Council meeting last week in Montreal, the European Commission has announced its decision to suspend the inclusion of international aviation in the EU ETS.

The announcement has been welcomed by most of the industry associations as a pragmatic move in the right direction that will allow a more constructive climate for the upcoming ICAO negotiations towards a global sectoral agreement on aviation emissions.

The Commission’s decision is also recognition of the progress made in ICAO in the last months and the palpable sense of urgency towards a workable deal which creates a confident expectation that a truly global solution will be found within ICAO.

Video of the announcement made by Commissioner Hedegaard.

The aviation industry has always seen the global approach as the best solution to reducing aviation emissions and incentivizing continuous investments in environmental improvements that will support a sustainable future for international aviation.The moratorium on some aspects of aviation ETS is at the same time an opportunity and a responsibility for the ICAO member countries to show leadership and push for action on a global agreement. Now we all look forward to seeing all parties working together with even more intensity and constructive spirit to define a positive proposal for the 38th ICAO Assembly (24 September – 4 October 2013).

European Commission press release.

Europe’s air traffic control systems should be urgently modernised and merged into a single European airspace in order to reduce congestion and flight delays as well as cut CO2 emissions, say MEPs in a resolution adopted on Tuesday 23 October.

Have a look at the below video that has been posted recently!

European Transport Commissioner Siim Kallas made the following comment a few weeks ago when discussing the Connecting Europe Facility:

If transport does not flow or connect smoothly, our economy will fail to grow and we risk losing our competitive edge in the global marketplace. Put simply, transport enables us to connect to compete.

Siim Kallas, European Transport Commissioner

He is absolutely right of course. Not only does transport allow European integration to occur and trade to develop between European countries, but it also provides for European jobs to build and service the infrastructure (not to mention European relaxation!). This week, we have released a new report which explores the role aviation plays in – and between – the European Union’s 27 member states. It is an extension of a report released earlier this year looking at the global picture, Aviation: benefits beyond borders.

Analysis from Oxford Economics has found that 7.8 million jobs and €475 billion in gross domestic product are supported by aviation in the EU27. That’s nearly 4% of European GDP. Aside from high-value jobs in aerospace manufacturing and engineering, air transport provides employment in areas across a wide range of skills, from advanced logistics, catering, customer service, maintenance, pilots and cabin crew. Add to this the jobs supported through the aviation supply chain and in the tourism made possible by air travel and you soon start to realise the important role that aviation can play in helping to boost economies – of particular importance in Europe right now.

While aviation carries 0.6% of the volume of EU trade with the rest of the world, it covers 22.7% of the trade by value. This demonstrates that the €654 billion in extra-EU27 trade transported by air in 2010 is made up of very high-value commodities. Malta, Ireland, Luxembourg and Cyprus all have particularly important high-tech component sectors. And the trade in fresh produce can have very real, long-term, benefits for trading partners.

When the Eyjafjallajokull Volcano erupted in 2010, around €3.7 billion was lost from the global economy. But even harder hit were the economies of African trading partners such as Kenya, Zambia and Ghana where an estimated €48.5 million was lost from the economy as fresh produce was unable to reach its European customers and rotted. A sign of how, through air transport, European consumers can build sustainable businesses in developing nations, rather than simply sending aid.

You can find the EU27 report here and the full, global, report here.

European airspace is fragmented and, as traffic grows, will become increasingly congested. Fragmentation causes longer flight time, delays, extra fuel burn and CO2 emissions. Air navigation services and their support systems are not fully integrated and are based on outdated technologies that are already running at maximum capacity. In order to accommodate future air traffic needs, a paradigm shift, supported by state-of-the-art and innovative technologies, is required. Boeing is committed to developing Air Traffic Management (ATM) solutions that offer substantial near term improvements and will serve as the building blocks for a more safe, efficient and environmentally progressive system.

A modernised ATM system will be a key contributor to achieving this goal. For this reason, Boeing values and actively supports the EU’s efforts to implement more swiftly the Single European Sky (SES) and welcomes the announcement made on 11 October by Commission’s Vice President, responsible for Transport, Siim Kallas, that in Spring 2013 the Commission will bring forward proposals to strengthen the existing SES legal framework with a view to accelerating the ongoing reforms. Boeing shares the sense of urgency that this initiative aims to drive, given that – ten years on – SES is still not delivering. The measures being proposed, including to strengthen the Performance Scheme and the Functional Airspace Blocks, will be key in order to reap the full benefits of creating a Single European Sky.

In addition, Boeing directly contributes to the ATM technology project SESAR, including the critical deployment phase (2014-2020). Boeing and its industry partners are keenly focused to ensure activities have a measurable benefit and developments in Europe are seamlessly integrated with NextGen, the equivalent project in the United States. A timely and performance-driven delivery of the Single European Sky will underpin not only a safer and more effective ATM system, including more efficient routing and reduced time in the air, but also a more environmentally efficient air transport system through fuel savings and subsequent double digit emissions reduction in all the in-service fleets.

Such ATM improvements represent the greatest short term opportunities to reduce CO2 emissions. Boeing is working with partners around the world to improve today’s global air traffic management system to enhance safety, improve operational and environmental efficiency, and prepare for the expected growth in global air travel. A transformational ATM solution is needed to optimize and enhance the efficiency of the worldwide system.

Have a look at this video of a recent reception on technology in the aviation industry with perspectives from Boeing, General Electric, Honeywell and the Association of European Airlines.