Global Sectoral Approach
A global framework for aviation and climate change:
The International Air Transport Association (IATA) reiterated its
call for a global sectoral approach led by the International Civil
Aviation Organization (ICAO) to handle aviation's emissions in the
"We need a global solution that can encompass all of aviation -
incorporating the differing situations of airlines from developed and
developing nations. The best hope of this is through ICAO which has a
proven track record," said IATA's Director General and CEO Giovanni
In a speech to an event jointly hosted by The Energy and Resources
Institute (TERI) and IATA, Bisignani referred specifically to the
effective work of ICAO in handling the introduction of quieter aircraft.
"ICAO developed a global framework to deal with noise.
noisiest aircraft were phased out between 1995 and 2002. The global
solution took into account the difficult situation of some developing
nations with an extension to 2005," said Bisignani.
The remarks are particularly timely as the global climate change
debate is increasingly stalled on the principle of common but
differentiated responsibility that underpins the United Nation's
Framework Convention on Climate Change in the run-up to climate talks in
Copenhagen this December.
At the recent ICAO high level meeting on aviation and climate change,
governments agreed to continue to address aviation and climate change
through ICAO and to work closely with industry. They also laid the
foundations to developing a global sectoral approach - a global
framework developed through ICAO.
IATA defines such a sectoral approach
Accounting for emissions at a global level, not by State making
aviation fully accountable and pay for its emissions once, not several
times over. Giving access to global carbon markets until technology
provides the ultimate solution.
"Such a global approach would take advantage of the aviation sector's
proactive approach to addressing the issues of climate change. We are
the only industry with a united strategy and targets across the whole
value chain. These are tougher targets than even our regulators are
prepared to administer," said Bisignani.
Aviation has committed to three sequential targets:
Improving average annual fuel efficiency by 1.5 percent to 2020
Stabilizing emissions with carbon-neutral growth from 2020. An
aspirational goal to cut net emissions in half by 2050, compared to
Bisignani recently met the UN Secretary General Ban Ki-moon to
present the industry strategy and targets.
In the meeting, the UN Secretary-General commended the aviation
industry's commitment to contribute to the global fight against climate
change and encouraged that these commitments be followed by concrete
He stressed the importance of addressing emissions from international
aviation and shipping if the world is to achieve its goal of reducing
global greenhouse gas emissions to a level that avoids dangerous climate
Bisignani singled out sustainable biofuels as an example of optimism
in future reductions. "The three biggest opportunities for emissions
reductions are technology, infrastructure and sustainable biofuels.
Of these, sustainable biofuels are the most exciting because for the
first time air transport has the possibility of an alternative to
traditional jet fuel.
Our attention is on camelina, jatropha and algae which do not compete
for land or water with food crops but have the potential to reduce our
carbon footprint by up to 80 percent.
Because they can be grown in almost any soil condition or in salt
water or even waste water they have the potential to create new
industries and livelihoods by bringing sustainable energy production
jobs to many of the least developed parts of the planet," said Bisignani.
Four test flights with sustainable biofuels have proven that they
meet the technical and safety standards for use in commercial aviation.
Moreover, they can be blended with jet fuel and used in today's
aircraft and engines. "Progress is going at a much faster pace than
anybody anticipated. Three years ago sustainable biofuels were a dream.
Now we expect certification no later than 2011," said Bisignani.
Bisignani took the opportunity to comment on the EU's recently
announced policy framework for Copenhagen. "The most important
development is their explicit support for a global approach through ICAO.
They have set some targets which are more political than technical. As
such they are neither credible nor achievable with the timelines
described," said Bisignani.
"The most important outcome from Copenhagen for aviation will be
agreement to treat aviation as a sector under the leadership of ICAO and
working with industry.
This should be the focus for all governments seeking to effect real
reductions in CO2 from the global aviation sector - from India and China
to the EU and the US.
If not, we face the risk of uncoordinated competitive government
taxation that won't reduce emissions but will be harmful to global
economic development," said Bisignani.
JAL to restructure
Ailing Japan Airlines will restructure itself under a state-backed
corporate turnaround firm while the government mulls a special law to
cut the carrier's high pension payouts, reports said Sunday.
The Japanese government, which will announce a turnaround plan for
JAL by the end of this week, will also consider an injection of public
funds after the plan is finalised, the Nikkei business daily reported
without citing sources.
Local media reported that the state-backed Enterprise Turnaround
Initiative Corp. of Japan will be in charge of breathing life back into
The government launched the quasi-public agency earlier this month to
help debt-laden companies that are seen as having the potential to
recover, designed to ensure transparency in negotiating debt-relief
measures among creditors.
The agency may guarantee loans extended by the Development Bank of
Japan and other JAL creditors, or it may lend to the company directly,
the Nikkei said.
The carrier needs a bridge loan of about 200 billion yen (2.17
billion dollars) by the end of this year, it said.
JAL's shortfall of pension reserves has reached about 330 billion
yen, placing pressure on its management, reports said.
The government also considers creating a new law to enable the
carrier to lower its pension payouts to retirees, the Yomiuri daily
reported, citing unnamed government sources.
If the law is enacted, debt write-offs by financial institutions and
the injection of public funds are to proceed more smoothly, which could
accelerate the airline's rehabilitation, the daily said.
JAL, which is expected to plunge 5.5 billion dollars into the red
this financial year, has also decided to reduce its group workforce by
13,000 by the end of March 2015, 4,000 more than its initial plan, Kyodo
The company, which lost more than one billion dollars in the
April-June quarter, is seeking another public bailout to keep operating.
JAL has already received three government bailouts since 2001.