The Aviation industry is set to implement market-based measures (MBM) to ensure carbon neutral growth from 2020. This is known as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Many airlines and their partners are already working to reduce emissions from aviation through fleet upgrades, increases in efficiency measures and new technology. These measures are critical if we are to reduce the impacts of climate change, however do not operate in isolation.
Business Case for Investing in Carbon Offsetting
The astute business leaders of today are employing a comprehensive approach to understanding, disclosing and managing emission reductions. These leaders understand that these measures must focus on achieving internal reductions, whilst sustaining the long-term sustainability of the business. As such, it is important to understand the marginal cost of abatement associated with reduction initiatives, as well as the time scale associated with technological improvements that will deliver lower emission profiles. When emission reduction initiatives are at the top of the marginal cost curve, they inevitably provide little reward at maximal cost. It is within this context that accessing the carbon markets to source carbon offsets from high quality sources represents an opportunity for companies committed to reducing emissions whilst managing the costs of doing so.
Aircraft emissions account for 98% of Delta’s carbon footprint. In an effort to increase transparency and help identify ways to reduce their overall environmental impact, Delta has calculated their complete greenhouse gas (GHG) inventory annually and has it externally verified. Since 2005, Delta has reduced annual GHG emissions from flight and ground operations by 7.9 million tCO2e, a 17.2% decrease over eight years. This was achieved through fleet restructuring – replacing older, less fuel-efficient jets with more modern planes as well as:
- Strategic flight planning
- Removing unnecessary weight
- Improved operations
- Upgraded aircraft software
- Winglets, among other projects
In 2013, Delta set itself a target of carbon-neutral growth, meaning that despite any increases in traffic growth, it would not increase its level of net CO2 emissions past the 2012 baseline.
After careful review and due diligence process, the airline chose emissions reduction projects involving wind energy, landfill gas recovery, efficient cooking stoves, reduced emissions from deforestation and degradation (REDD+) as well as other environmental initiatives.
Delta has worked with CTX to identify and invest in a number of offset projects from a wide range of geographies that are representative of the communities that Delta serves. Projects were selected in Brazil, Peru, Mexico and South Korea, allowing the airline to make up the gap between their efficiency increases and traffic growth that have led to a slight increase in total emissions above its 2012 baseline.
Carbon Procurement Proposal
All projects selected by Delta meet all of the industry’s highest quality standards (CER, VCS and Gold Standard) and have been validated and verified by third-party authorities to ensure that the emission reductions are permanent, verifiable, and additional. Through Delta’s investment into emission reduction projects, a total of 1.7 million tonnes of CO2 have been reduced.
Where CTX Can Help
CTX provides simple, transparent and secure access to carbon offset projects certified by the United Nations CDM and/or Gold Standard. Our vision is to provide transparency, liquidity, price discovery and access to the global environmental markets.
Opening a CTX account:
- Is completely free
- Provides online access to a global wholesale market 24/7/365
- Has no counterparty, credit or delivery risk
- Allows you to search our inventory to tailor a portfolio to your CSR plan
- Access to over 100 projects globally
- Provides increased price transparency and liquidity
- Provides same-day clearing and settlement
CTX provides free access to over 100 projects globally, all of which have been developed in accordance with the United Nations CDM and/or Gold Standard. The offsets available on CTX range in price from $0.20 to $20.00 per metric ton of CO2e and vary by project type, vintage, standard and region. CTX works with its members to identify the projects which align to their CSR strategy and meet budget requirements. We can also provide marketing and communication materials for each project to support a strong marketing story for both customers and staff. With over 8 million carbon offsets having been transacted on the CTX voluntary carbon platform, CTX offers a simple, secure and transparent means of accessing offsets globally.
Contact our Sales & Trading team today to discuss how your company can enjoy transparent and secure access to offsets through CTX.