The Carbon Footprint of Indian Aviation

2011

July 10th, 2012

TABLE OF CONTENTS

Executive Summary

Introduction ...................................................................................................... 2

1 Stakeholders ................................................................................................ 2

2 Carbon Footprint Data Collection .............................................................. 3

3 Calculations & Data Reliability ................................................................... 4

4 Carbon Footprint for 2011 .......................................................................... 7

5 Policy Recommendations ........................................................................ 11

6 Conclusions............................................................................................... 12

2

Executive Summary

This report maps in a comprehensive and detailed manner the first-ever carbon

footprint of Indian aviation for 2011. It identifies the main stakeholders of Indian aviation

involved in the creation of this carbon footprint, introduces the data collection process, and

analyses calculation and data reliability issues. The main part of the report presents the

emission sources and the results of various forms of carbon footprint calculations, while

policy recommendations are also made. Overall, the following conclusions have been

reached:

a) The carbon footprint of Indian scheduled airlines to/from domestic destinations was

6,755,000 tonnes of CO2. The carbon footprint of Indian scheduled airlines to/from

international destinations was 5,949,000 tonnes of CO2. Therefore, the carbon

footprint of Indian scheduled airlines for domestic and international operations was

12,704,000 tonnes of CO2. This represents a 6% increase in comparison to 2010

(11,990,000 tonnes).

b) The carbon footprint of foreign airlines serving international destinations from Indian

airports, which is based on Aviation Turbine Fuel (ATF) uplift from India, reached

3,623,000 tonnes of CO2.

c) The carbon footprint of scheduled Indian airlines and foreign airlines (to

international destinations) represents approximately 1% of the country’s total CO2

emissions, which is significantly lower than the global average contribution of

airlines, which represent approximately 2% of global anthropogenic emissions.

d) In the business-as-usual scenario, emissions of Indian scheduled airlines to/from

domestic destinations are forecast to grow to 14,500,000 and 111,000,000 tonnes

of CO2 in 2020 and 2050 respectively if no emission reduction measures are

adopted. When both domestic/international operations of these airlines are

considered, the respective forecast emissions are 27,000,000 and 209,000,000

tonnes of CO2.

e) Several Indian scheduled passenger airlines are at or below the average global

level of CO2 per RTK (i.e. 0.95 kgs), but several others exceed this value.

3

f) Emissions from Indian airport operations are estimated in the range of 700,000

tonnes of CO2.

g) Indian scheduled airlines implement reliable systems for tracking ATF consumption,

while major airports implement reliable systems for tracking fuel and electricity

consumption. At the same time, several Indian scheduled airlines and airports face

significant difficulties in collecting data for fuel consumption from their vehicle fleets

and electricity consumption.

Further to these results, four main recommendations are made:

a) The carbon footprint of Indian aviation for 2011 should be publicized both within the

Indian aviation industry (e.g., airlines, airports, DGCA website), internationally (e.g.,

ICAO, CAEP meeting in February 2013), and possibly the specialised aviation

press, in order to showcase the meaningful efforts of India regarding aviation and

climate change.

b) The development of an annual carbon footprint for the Indian aviation sector is

imperative in order to implement reduction measures, monitor progress over time,

and set targets if necessary.

c) Additional workshops could be provided to both Indian airlines and airport operators

in order to promote increased awareness concerning aviation’s role in climate

change, to improve data collection procedures and to encourage collaboration

amongst aviation’s major stakeholders.

d) The DGCA Circular 1 of 2012 (2/1/2012) on the Estimation of Carbon Footprint for

Developing National Carbon Emission Inventory for the Indian Aviation Sector

should be adjusted/updated to better meet the needs of the aviation industry and

allow airports and airlines to set-up more comprehensive and effective data

collection and analysis corporate systems.

2

Introduction An important requirement in order to formulate an effective policy to address

the challenge of climate change is to determine the sources and current level of

CO2 emissions, identify trends and make predictions about future growth. Section 1

of this report introduces the main stakeholders of Indian aviation involved in the

creation of this carbon footprint. Section 2 introduces the data collection process,

while Section 3 analyses calculation and data reliability issues.

Section 4 presents the results of various forms of carbon footprint

calculations in relation to the respective sources. More specifically, the analysis

focuses on CO2 emissions from the domestic and international operations of Indian

scheduled airlines, the emissions from foreign airlines based on their fuel uplift in

India, as well as emissions from airport operations. Predictions of future growth as

well as comparisons with global efficiency averages are made. Finally, Section 5

focuses on policy recommendations.

1. Stakeholders

development of the carbon footprint of the Indian aviation sector requires the

contribution from various institutions regarding policy developments, data

submission and collection, reviews, development of databases and other initiatives.

The following organisations were mainly involved with these tasks (Figure 1):

Directorate General of Civil Aviation (DGCA):

Nodal point for issuing the relevant Circular, collecting data and

communicating requests to airlines and airports.

Airlines/Airports:

Responsible for submitting information and data regarding their operations.

EU-India Civil Aviation Cooperation Project (ICCA):

Provision of resources and advise to produce the carbon footprint.

3

Other:

Provision of additional information regarding fuel consumption, emission

levels, etc. by institutions, such as the Ministry of Environment and Forests, the

Ministry of Petroleum & Natural Gas, and the International Energy Agency.

Figure 1: Main Stakeholders of the Carbon Footprint of Indian Aviation

2. Carbon Footprint Data Collection

The methodology for the development of the carbon footprint is based on

the IPCC’s (2006) Tier 1 approach (i.e., aggregate ATF quantities from airlines and

other sources). Information from airlines and airports is based on the DGCA’s

Circular 1 of 2012 (2/1/2012) on the Estimation of Carbon Footprint for Developing

National Carbon Emission Inventory for the Indian Aviation Sector. According to

this Circular, airlines and airports (with operations above specific thresholds) are

required to submit fuel (e.g., aircraft, vehicles, generators) and electricity

consumption data (e.g., offices) on an annual basis in relation to their Scope 1 and

2 emissions.1 From February-July 2012, 19 airports and all 8 scheduled airlines

(which were responsible for the transportation of more than 75 million passengers

in 2011) submitted fuel and electricity consumption data respectively using specific

forms for 2011 (Table 1). Additional quantitative information was collected from the 1 In accordance to the Greenhouse Gas Protocol (2004), Scope 1 represents direct greenhouse gas emissions and Scope 2 represents emissions from purchased electricity, heat or steam consumed by the organisation.

4

Ministry of Petroleum & Natural Gas. The data have been entered in a database for

review and analysis.

Table 1 Airlines & Airports

Scheduled Airlines

Private Airports Airports Authority of India (AAI) Airports

Air India Group* Bangalore Ahmedabad Indore

Blue Dart (Cargo)

Cochin Bhubaneswar Jaipur

Go Air Delhi Calicut Juhu

Indigo Hyderabad Chennai Lucknow

Jet Airways Mumbai Coimbatore Nagpur

Jet Lite Goa Pune

Kingfisher Guwahati Trivandrum

Spicejet

*Includes Air India, Air India Express & Alliance Air. 3. Calculations & Data Reliability

This section describes how CO2 emissions were calculated for each

emission source as well as the level of data reliability.

Aviation Turbine Fuel (ATF):

For airlines, ATF is in most cases initially reported in the aircraft technical

logs and then transferred to a corporate database. Various departments, such as

Finance, Quality Control, and Engineering undertake comparisons and quality

control checks (e.g., via fuel invoices). On many occasions external verifiers or

other institutions (e.g., IATA) certify that the methodology used for data collection is

in accordance with international guidelines. Given that fuel has historically been

one of the most significant cost and operational inputs for airlines, there is a

reliable system of tracking consumption overtime. Therefore, reliability of ATF data

is considered high.

5

The Ministry of Petroleum & Natural Gas (Petroleum Planning & Analysis

Cell), also provided ATF uplift information in India broken down into categories,

such as foreign airlines, Indian airlines, and other consumption.2

Other fuels:

In the case of petrol, diesel, CNG and LPG, which are mainly used for

vehicles, generators, etc., the data sources are mainly related to invoices from

refuelling stations. Where possible, quality control is undertaken (e.g., Finance

Department via invoices). Potential sources of error may be related to mistakes in

data entry, incorrect charging of fuel type, omissions, etc. In general, the major

airports have a well-developed system for data collection and analysis, which in

some cases is also verified by external institutions (e.g., Bureau Veritas). However,

for several airlines and airports, it has become evident that data were lacking or

were not accurate due to the existence of a large number of vehicles and locations,

outsourcing or shared services, and other reasons. Therefore, the quality of this

data is considered as moderate/low for airlines and smaller airports but high for

large international airports.

Electricity:

Several airports implement adequate data collection and verification

processes, given the clear boundaries of operation and availability of electricity

invoices. However, in many cases electricity data is not available from airlines and

some airports or there is significant uncertainty about their quality and reliability.

For example, some airline field offices around the country were not in the position

to submit data because electricity consumption is not billed directly but is

incorporated into the rent. As such, the reliability of electricity data is considered

moderate/low for airlines and several airports while high for major airports.

Table 2 presents the various fuel types and their corresponding level of

reliability, the emission factors, and the relevant reference for the emission factor.

2 “Other” refers to general aviation, resellers, etc.

6

The data submitted by airports and airlines have been saved at the project

database. Given confidentiality issues, only aggregate data are presented in this

report.

Table 2 Emissions Calculation Information

Fuel Type

Data Reliability*

Emission Factor Reference

ATF Airlines: H 3.157 tonnes of CO2/tonne

ICAO (2011), Guidance Material for the Development of States’ Action Plans, p. 19

Petrol Airlines: M/L Airports: H/L

3.14 tonnes of CO2/tonne

DEFRA: 2011 Guidelines to DEFRA/DECC's GHG Conversion Factors for

Company Reporting, Annex 1, Tables 1a & 1b

Diesel Airlines: M/L Airports: H/L

3.16 tonnes of CO2/tonne

CNG Airlines: M/L Airports: H/L

2.70 tonnes of CO2/tonne

LPG Airlines: M/L Airports: H/L

1.49 tonnes of CO2/m

3 Electrici

ty NEWN

E**

Airlines: M/L Airports: H/L

0.80 tonnes of CO2/MWh

Ministry of Power (2012), Central Electricity Authority, CO2 Baseline Database for the Indian Power Sector,

Table S-1 Electricity

South**

Airlines: M/L Airports: H/L

0.75 tonnes of CO2/MWh

* H=High, M=Moderate, L=Low. Data reliability may fluctuate significantly between airlines and airports. ** Two emission factors are available depending on the location of service provision (NEWNE: Integrated North Eastern Western & North-Western regional grids and South: Southern Grid)

Meetings and discussions took place with several of the airlines and airports

to clarify issues regarding data sources, validity, etc. (Table 3). In several cases,

additional data and clarifications were requested on issues such as data collection

procedures, examples of best practices, and calculations. Airports and airlines

responded accordingly in writing. Data from different sources (e.g., airlines and

Ministry of Petroleum & Natural Gas) were compared, while indicators based on

passengers, Revenue Tonne Kilometres (RTK) and aircraft movements were used

to assess consistency of data.

7

Table 3 Airlines Meeting Schedule

Scheduled Airlines Meeting/Discussion

Air India Group* 25/5/2012

Blue Dart (Cargo)** 3/5/2012

Go Air** 22/6/2012

Indigo 29/5/2012

Jet Airways 24/5/2012

Jet Lite 22/5/2012

Kingfisher 25/5/2012

Spicejet 14/6/2012

* Includes Air India, Air India Express & Alliance Air. ** Telecom.

4. Carbon Footprint for 2011

This section provides detailed information regarding the carbon footprint of

Indian aviation for 2011.

a) Based on fuel data consumption collected directly from the 7 Indian

scheduled passenger airlines and 1 cargo airline, the carbon footprint of

Indian scheduled airlines to/from domestic destinations was 6,755,000

tonnes of CO2.3

In accordance to international standards, international aviation bunkers (i.e.,

emissions from fuel use for international civil aviation)4 should be excluded

to the degree possible from national totals but should be reported

separately.5 Based on data from the aforementioned airlines, the carbon

footprint of Indian scheduled airlines to/from international destinations was

5,949,000 tonnes of CO2 in 2011. Therefore, the carbon footprint of Indian

scheduled airlines for domestic and international operations was 12,704,000

tonnes of CO2. This represents a 6% increase in comparison to 2010

(11,990,000 tonnes).

3 There is no detailed information about fuel consumption of non-scheduled airlines. Preliminary data review and their relatively low operational share in 2010 (i.e., 1%) suggest that their fuel consumption and therefore contribution to CO2 emissions is very small. 4 According to ICAO, Guidance Material for the Development of States’ Action Plans, (2011), p. 17, international are flights with one or both terminals in the territory of a country, other than the country in which the air carriers has its principal places of business. Domestic flights are those not classifiable as international. 5 Intergovernmental Panel on Climate Change, Guidelines for National Greenhouse Gas Inventories, Understanding the Common Reporting Framework, (1996).

8

b) Based on ATF uplift data from India obtained from the Ministry of Petroleum

& Natural Gas, the carbon footprint of foreign airlines serving international

destinations from Indian airports reached 3,623,000 tonnes of CO2.

Figure 2 delineates the breakdown of CO2 emissions based on the three

major airline sources.

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Indian Scheduled Airlines To/

From Domes c Des na ons:

6,755,000

Indian Scheduled Airlines To/

From Internaitonal Des na ons:

5,949,000

Foreign Airlines to Interna onal

Des na ons:

3,623,000

CO2

Emissions (tonnes)

in

2011

CO2 Emissions Distribu on

Figure 2

Global vs Indian CO2 Emissions

In 2011, global airline operations were responsible for the emissions of 676,000,000 tons of CO2, representing approximately 2% of global

anthropogenic emissions.6 In comparison, emissions of Indian scheduled airline operations to/from domestic/international destinations as well as

from foreign airlines to international destinations represent less than 1% of India’s total CO2 emissions (i.e., 1.84 billion tonnes in 2010), which is

significantly lower than the global average of 2%.

6 Air Transport Action Group (ATAG), Aviation Benefits Beyond Borders, (Geneva, Switzerland, March 2012); IPCC Fourth Assessment Report, WG III, Technical Summary (2007).

9

c) It is also important to predict the long-term evolution of CO2 emissions over

time up to 2050. This task incorporates some inherent difficulties since

predictions for the growing and changing Indian market are difficult to make.

However, such a forecast can set the baseline for Indian aviation’s future

emissions in the absence of any additional reduction measures.

The Ministry of Petroleum & Natural Gas predicts an annual growth rate of

ATF fuel consumption of 9.6% (2011-2017) and 7.9% (2017-2022).7 For the period

2022-2050, this report uses a more conservative growth rate of 7%. Figure 3

suggests that the baseline emissions of Indian scheduled airlines to/from domestic

destinations in 2020 and 2050, assuming no measures are taken for emission

reductions, are estimated at approximately 14,500,000 and 111,000,000 tonnes of

CO2 respectively. When both domestic and international operations of these

airlines are considered, the respective emissions are 27,000,000 and 209,000,000

tonnes of CO2.

27,231,306

209,035,219

14,479,904

111,151,843

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

Tonnes CO2

Baseline CO2 Emissions 2012-2050

Emissions of Indian Scheduled Airlines To/From Domes c & Interna onal Des na ons

Emissions of Indian Scheduled Airlines To/From Domes c Des na ons

Figure 3

7 Ministry of Petroleum & Natural Gas, Petroleum Planning & Analysis Cell, Demand Projection XII and XIII Plan (http://ppac.org.in).

10

d) Based on ATF consumption and RTK data for 2011 from the 7 Indian

scheduled passenger airlines listed in Table 1, it is possible to compare CO2

emissions per RTK of these airlines with the global average for 2011 of 0.95

Kgs/RTK. 8 According to Figure 4, several Indian scheduled passenger

airlines are at or below the average level while some exceed this value,

indicating room for improved efficiency. Furthermore, the Indian average is

higher than the global average.

0.93 0.93 0.94 0.95

1.06 1.11 1.11

1.25

1.50

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Airline A Airline B Airline C Global Average Indian Average Airline D Airline E Airline F Airline G

Kgs of CO2 Emissions/RTK

Figure 3

Comparison of Indian Scheduled Passenger Airlines CO2 Emissions/RTK

Figure 4

e) It is estimated that approximately 95% of aviation’s emissions are emitted

from aircraft while just 5% come from airport related activities.9 Therefore,

applying this assumption, it is estimated that Indian airports emitted around

700,000 tonnes of CO2. This is consistent with preliminary data provided by

5 private airports and 14 airports of AAI that was converted to emissions

using the emission factors listed in Table 2. Furthermore, electricity

consumption is the main source of airport CO2 emissions.

8 P. Steele, Air Transport Action Group, Aviation & Environment, Presentation at the 68th IATA AGM Meeting (Beijing, China, June 2012). Calculations based on the 2011 average global fuel consumption of 37.49 litres/100 RTK. Due to confidentiality reasons the names of the airlines are not presented. 9 ACI-Europe & WSP (2011), Airport Carbon Accreditation Annual Report 2010-2011.

11

5. Policy Recommendations

In light of the findings reported above, the following recommendations are

made:

a) This report maps in a comprehensive and detailed manner the first-ever

carbon footprint of Indian aviation for 2011. Therefore, it should be

publicised both within the Indian aviation industry (e.g., airlines, airports,

DGCA website), internationally (e.g., ICAO, CAEP meeting in February

2013), and possibly the specialised aviation press, in order to showcase the

meaningful efforts of India regarding aviation and climate change.

b) The development of an annual carbon footprint for the Indian aviation sector

is imperative in order to implement reduction measures, monitor progress

over time, and set targets if necessary. The annual update is especially

important due to the significant growth of the aviation industry but also

because of unpredictable events, such as the scaling down of Kingfisher’s

operations (including the cessation of international operations) and the long

industrial action at Air India in 2012, which will influence the level of

emissions.

c) Additional workshops could be provided to both Indian airlines and airport

operators in order to promote increased awareness concerning aviation’s

role in climate change, to improve data collection procedures, and to

encourage collaboration amongst aviation’s stakeholders.

d) During the development of the carbon footprint it became evident that Indian

scheduled airlines implement reliable systems for tracking ATF

consumption, while major airports implement reliable systems for tracking

fuel and electricity consumption. At the same time, several Indian scheduled

airlines and airports face significant difficulties in collecting diesel, petrol and

other fuel consumption and electricity use data. Consequently, more time is

required for the set-up of internal corporate systems for the collection,

evaluation and reporting of some types of data. Therefore, Circular 1 of

2012 (2/1/2012) on the Estimation of Carbon Footprint for Developing

12

National Carbon Emission Inventory for the Indian Aviation Sector should be

adjusted/updated to better meet the needs of the aviation industry without

creating unnecessary burden to airlines, airports and the DGCA, while at the

same time ensuring that the most important data are provided in a reliable

and timely manner. The main recommendations are listed below:

1. The deadline for the submission of fuel data for the previous calendar

should be set as March 31st in order to allow adequate time for the

collection and provision of data.

2. Scheduled airlines should provide on a mandatory basis total ATF

consumption as well as passenger, RTK, cargo, and aircraft

movement information broken down into domestic and international

operations.

3. Major airports (e.g., airports with more than 10,000 annual aircraft

movements) should provide on a mandatory basis electricity

consumption as well as passenger, cargo, and aircraft movement

information broken down as domestic and international operations.

4. Airports and airlines should be encouraged to participate in national

or international voluntary emission certification or reduction

programs, such as certification in accordance to ISO 14064-1, Airport

Carbon Accreditation of ACI Europe & Asia-Pacific, and other similar

initiatives. Relevant certificates and reports to be submitted to DGCA

on an annual basis.

6. Conclusions

The process of developing the carbon footprint of the Indian aviation sector

for 2011 has provided a very good understanding of the sources of CO2 emissions

from Indian aviation, the availability of data from airlines and airports, the reliability

of this data, as well as the required future initiatives.

13

The implementation of the policy recommendations regarding the

dissemination of carbon footprint information domestically and internationally,

development of an annual carbon footprint, delivery of additional workshops of

airlines and airports and the update of the Circular on the estimation of India’s

carbon footprint together with the formulation of renewed domestic and

internationally oriented policies on climate change (that are being prepared as part

of the Indian Aviation and Environmental Policy), will underscore India’s

commitment to addressing the challenge of aviation and climate change in a

comprehensive and effective manner.