The International Business Aviation Council (IBAC) has partnered with Carbon Trade eXchange (CTX) to provide a platform for business aviation companies to voluntarily purchase carbon credits to offset their CO2 emissions as part of a sustainability plan.
The IBAC Carbon Credit Exchange programme is made possible by the partnership with CTX, which introduced the world's first electronic exchange for voluntary carbon credits in real-time more than a decade ago. Members of the exchange choose from a range of offset projects certified by the world's three leading carbon credit standards; the Gold Standard; UNFCCC Clean Development Mechanism and Verra Verified Carbon Standards.
Market based measures, identified in the Business Aviation Commitment on Climate Change (BACCC), have outlined that offsetting is part of the ICAO measures to help the industry achieve the goal of carbon-neutral growth. Carbon credits can be used in the near term as a supplement to other decarbonisation actions, such as operational improvements, the use of sustainable aviation fuel (SAF) and newer, more efficient aircraft contributing to emissions reductions now while the benefits of other measures accumulate over time.
“Operators should first assess the degree to which further fuel efficiencies and emissions reductions can be gained, at reasonable expense, from new technology, enhancements and the use of SAF,” states IBAC environment director, Bruce Parry. “Operational improvements, for example, can include reducing unnecessary weight in the aircraft, fuel tankering and the use of electrical ground power. The remaining impacts can then be offset. It's critical that offsetting be a part of an overall plan to reduce our carbon footprint and not be considered a free pass to ignore attainable environmental reduction measures.”
IBAC director general, Kurt Edwards comments: “While the industry strives to meet its decarbonisation goals directly, offsetting is a supplemental tool that allows operators to mitigate emissions now by financing carbon reductions achieved in projects outside the sector. We chose to partner with CTX because of its experience in the market and transparent business model.
“Its fixed fee transactions allow 95% of the funds collected to go directly to accredited projects. IBAC exchange members will have the freedom to choose to support projects that align with their corporate strategy, whether it's wind energy farms in North America or clean water efforts in southeast Asia.”
The offset process begins with fuel monitoring, an industry best practice as recommended by IBAC. Fuel management will help determine CO2 emissions once other efficiencies are in place. Calculating the emissions is done by using the ICAO-defined ratio of jet fuel CO2 production of 3.16 units of CO2 per one unit of fuel consumed. For example, 10 metric tonnes of jet fuel used would need 31.6 metric tonnes of carbon credits to fully offset.
Carbon Trade Exchange CEO Wayne Sharpe says: “The best way to start reducing emissions is to cost them in the business and our low-cost solution helps maximise results and profits for the business aviation sector. Importantly, operators can choose the projects from around the world they want to support with 95% of the purchase proceeds going to the projects selected. We are very proud to be part of this game changing solution and such fabulous business leadership on a global scale.”
CTX provides a variety of options to support any carbon offset budget, starting from as little as $1.00 to $2.00 per tonne of CO2e. Once carbon credits are purchased, the offset will be issued, and unique certificates of cancellation that cannot be sold or claimed again will be provided to the buyer. CTX is an exchange that works directly with project developers and thereby offers prices at a wholesale rate.
As a special offer to the business aviation community, CTX is offering the IBAC business aviation community a 20% discount off the initial membership fee until 31 December 2021 using the discount code IBAC2021.