Watch: How can we fly and emit less? The role of carbon offsets

Aviation Tomorrow: How can we fly and emit less? The role of offsets

Duration: 14:08 Minutes

Description: Alex Macheras discusses the use of nature-based offsets as an immediate and scalable way to reach aviation’s net-zero goals with Duncan van Bergen, Former Vice President of Shell Nature Based Solutions, and Adrian Gane, Director Sustainability & International Affairs at Etihad Airways.

Aviation Tomorrow: How can we fly and emit less? The role of offsets video transcript

[Background music plays]

Bright, uplifting music

[Video footage]

Alex Macheras walks to the camera and it cuts into him walking along a river bank with aircrafts in an airport in the distance. He pauses and looks at the aircrafts. A commercial aircraft flies high in the sky from left to right.

[Alex Macheras]

The aviation industry has undoubtedly brought progress, prosperity and opportunity for all.

[Video footage]

Places across the world appear: an aerial view of a mosque, a man standing on top of a cliff, women dancing in colourful ethnic costumes, a wok cooking over flames and a couple sharing food with chopsticks. A business meeting, silhouettes of people with their bags walking at the airport, and two people hugging at the airport.

[Alex Macheras]

It allows us to discover new countries, to travel to new territories and have exotic foods for breakfast, to develop business relationships. And most importantly, it keeps our friends and family close, no matter where we are on the earth. But with all good things in life, this comes at a price.

[On screen infographics]

Shows the world's carbon emissions, in which air travel contributes 2%. Other sectors include electricity, industry, agriculture and commercial and residential.

The frame transitions to Alex Mecharas facing and speaking to the camera, with an infographic overlay.

[Video Footage & On Screen Text]

2019: The global airline fleet pumped >900 million tonnes of carbon emissions. Source: IATA

The frame transitions to Alex Mecharas facing and speaking to the camera, with an infographic overlay.

[Video Footage & On Screen Text]

2019: The global airline fleet pumped >900 million tonnes of carbon emissions. Source: IATA

[Alex Mecharas & Video Footage]

Air travel contributes around 2% of the world's carbon emissions. In 2019, that amounted to 900 million tonnes of greenhouse gases.

[Video Footage]

Aerial view of expansive land with trees. It transitions to a view from the ground, looking up, with the sun peeking through the leaves.

[Alex Mecharas]

In a world where COVID-19 had hit, we have seen for ourselves the impact of fewer emissions on the environment.

The frame transitions to Alex Mecharas facing and speaking to the camera as he’s walking.

[Alex Mecharas]

But for a hard to abate sector, like the aviation industry, to tackle emissions, is an uphill climb. Ultimately it's an entire ecosystem, whereby everyone has a role to play from businesses to the consumers.

Alex Mecharas walks up to a railing and rests his hand, while speaking to the camera.

[Text displays]

Alex Macheras
Aviation analyst

[Alex Macheras]

I'm Alex Macheras, aviation analyst. And in this video series, we're going to be looking at the different ways we can tackle emissions, ultimately to be able to fly and emit less.

Alex Macheras turns away from the camera and looks out into the distance. A video of the sky before graphic and text appears.

[Text displays]

Aviation Tomorrow: The Future of Flight

How Can We Fly & Emit Less

The Role of Offsets

Presented by Alex Macheras

[Video Footage]

Aerial view of homes before it cuts to Alex walking down a street and crossing a road with a mask on. We then see Alex seated in a living space with an open laptop, facing and speaking to the camera.

[Alex Macheras]

Before we get into that, let's take a look at where the aviation industry is right now in terms of emissions.

[Graphics]

A graph of CO₂ emissions over the years to come, from 2005 to 2050. Source: ATAG - Waypoint 2050 Report

[Alex Macheras]

So the industry has agreed on a targeted reduction, 50% by 2050, that's based on 2005 levels. But to get there, we're going to need to rely on a variety of different measures - technology developments, operation and infrastructure improvements, and of course, the use of sustainable aviation fuel.

Alex Macheras is seen speaking to the camera in the living space again.

[Alex Macheras]

There's no silver bullet for cutting aviation's emissions by 50% based on those 2005 levels.

[Text displays]

How do we cut emissions from aviation?

1. Avoid
2. Reduce
3. Offset

[Background music plays]

Bright, uplifting music

[Alex Macheras]

But what we can do is we can take steps to meet those goals via the avoid, reduce and offset framework.

[Text displays]

Avoid: Emissions by optimising routes and increasing energy efficiency.

[Alex Macheras]

The best way of course, is avoiding emissions. This can mean optimising routes, increasing the energy efficiency of aircraft, or perhaps flying in a more sensible manner.

[Text displays]

Reduce: Using lower carbon fuels such as Sustainable Aviation Fuel (SAF).

[Alex Macheras]

When that's not possible, we can see how we are able to reduce those emissions. This could be by using low carbon fuels, such as sustainable aviation fuel and enhancing operational efficiencies.

Alex Macheras speaks to the camera.

[Alex Macheras]

However, the measures to avoid and reduce take time to scale. In parallel, we can work with a framework to help us to offset.

[Text displays]

Offset: Carbon offsets are an immediate and scalable measure.

[Alex Macheras]

One of the international efforts we see in the space is a market-based measure called COSIA or the Carbon Offsetting Reduction Scheme for International Aviation.

[Text displays]

COSIA

Carbon Offsetting Reduction Scheme for International Aviation

[Graphics]

Showcases the ecosystem between airline operators and programs and projects.

[Alex Macheras]

Generally, how this works is airlines are required to compensate for emissions above that 2019 baseline levels by purchasing carbon credits or offsets from programs or projects that mitigate carbon emissions. Carbon offset is an immediate and scalable measure to help close the gap between the emissions generated today and our carbon neutral goal. In this episode, I'm speaking with airlines and industry executives to find out what, alongside those longer-term measures, we can be doing in terms of immediate steps to meet that net zero goal. This is Adrian Gane, who is the Director of Sustainability and International Affairs at Etihad Airways.

The frame transitions to Adrian Gane facing and speaking to the camera.

[Text Displays]

Adrian Gane

Etihad Airways

[Adrian Gane]

The key thing is if we don't get this right, there will not be an aviation industry in the next 10 or 20 years.

[Video Footage]

The frame transitions to Alex Mecharas facing and speaking to the camera. The frame then transitions to footage of one of Etihad Airways’ aircraft.

[Alex Mecharas]

Etihad Airways has plans to reach net zero by 2050. And they're going to be doing this via a variety of different measures and strategies. First and foremost, is the technological solutions like sustainable aviation fuel, and have introduced the 787-Greenliner program that will be used to test sustainable initiatives and innovations on its fleet of 787.

 [Video Footage]

The frame transitions to a split screen of Alex Mecharas and Adrian Gane. It transitions to a shot of a building that bears the logo “Etihad Aviation Group Headquarters”. The frame cuts to scenes in an airport first with passengers walking through the concourse with their luggage. Etihad Airways ground staff are then seen processing passengers at a gate, followed by Etihad Air Crew welcoming passengers on board an aircraft. The frame cuts to an Etihad Airways aircraft taxiing along the runway, before cutting back to Adrian speaking to the camera.

[Adrian Gane]

We took this process in two steps. The first one is that we, as a company, have to show leadership in terms of what we are doing about our emissions. So that's the first thing, you can't expect your customers to do all the work for you. So if a passenger gets on our Greenliner this year, they know that their journey is completely offset. There is no net carbon emission from that flight, and we will be allowing passengers the opportunity to buy additional offsets, if they want to get involved in those projects, through our website.

[Video Footage]

The frame transitions to Etihad Airway’s website which describes their sustainability efforts. The headline text reads:

Our carbon offset programme is the first in the Middle East

Fuel efficiency programme

Sustainable Alternative Fuels

The frame transitions to Alex Mecharas facing and speaking to the camera.

[Alex Mecharas]

There are so many ways in which we can offset our carbon footprint, just like how Etihad is doing. As more companies are committing and pledging to reduce that greenhouse gases, carbon offset schemes are a dime in a dozen. It’s estimated that the global market for carbon offsets could reach US$200 billion by 2050.

[Text Displays]

How do we cut emissions from aviation?

What factors should we consider when choosing a carbon offset project?

[Alex Mecharas]

With the wealth of information out there, here's the big question. What factors should we consider when choosing a project to offset carbon? To find out, I'm talking to an expert in this area, Duncan Van Bergen, from the Shell Nature Based Solutions business.

[Video Footage]

The frame transitions to Duncan Van Bergen facing and speaking to the camera.

[Text Displays]

Duncan Van Bergen

Former VP, Shell Nature Based Solutions

Alex, hi! It's great to be doing this together with you. There's quite a bit of care that needs to go into picking a carbon credit. Now first, even before you get to the carbon credit, what's important is to figure out where does do carbon credits, where does offsetting fit in the climate strategy? Where does it fit in your action plan on the emissions footprint? Yeah, offsetting really only has a place in a concerted approach to avoiding emissions in the first place, reducing them and then offsetting. But indeed, once you get to the offsetting part, it is so crucial to pick a quality carbon credit.

[Video Footage]

The frame transitions to Alex Mecharas facing and speaking to the camera.

[Alex Mecharas]

So what's the criteria specifically for being able to outline the best quality?

[Video Footage]

The frame transitions to Duncan Van Bergen facing and speaking to the camera.

[On Screen Infographics]

Is the programme validated and accredited?

[Duncan Van Bergen]

Carbon credits you choose, have been verified by one of the well-known and trusted standards that exist for that.

[On Screen Infographics]

Is he programme validated and accredited?

VERRA

American Carbon Registry

Gold Standard

Chinese Certified Emission Reduction (CCER) Scheme

[Alex Mecharas]

These independent bodies are a kind of litmus test or quality control on the effectiveness of carbon offset schemes, and there are many that exist today.

[Video Footage]

The frame transitions to Duncan Van Bergen facing and speaking to the camera.

[On Screen Infographics]

Additionality Test

Permanence

No Leakage

[Duncan Van Bergen]

These bodies look at, does it meet additionality tests? Would this sequestration of carbon have happened, had it not been for the project? It also looks at permanence. Does the sequestration of the CO₂ lasts for a generation or more so that it really has an impact. It also looks at leakage. Does this program, if it's successfully implemented, actually just move emissions to another part or another ecosystem, if it's in nature. At Shell, we do our best to provide an additional layer on scrutiny, because we think it's important that in an offsetting program, the credits you choose really make a difference.

[Video Footage]

The frame transitions to Alex Mecharas facing and speaking away from the camera.

[Alex Mecharas]

It's so important to know that the program you're investing in, is sustainable for the long term. On top of that, I think it's also vital for these projects to have a net positive effect on climate community. And of course, biodiversity.

[Video Footage]

The frame transitions to Duncan Van Bergen facing and speaking to the camera.

[On Screen Infographics]

Does the offset have co-benefits?

Icons showing some of the UN Sustainable Development Goals: 1) No Poverty, 3) Good Health and Wellbeing, 5) Gender Equality, 6) Clean Water and Sanitisation, 8) Decent Work and Economic Growth, 13) Climate Action, 15) Life on Land, 16) Peace, Justice and Strong Institutions, 17) Partnerships for the Goals

[Duncan Van Bergen]

You're spot on, Alex. These core benefits are really about, does this project have a net positive impact and all the other sustainable development goals that you can link them to.

There are a huge variety of carbon offset schemes from forestry and conservation, to renewable energy, and waste to energy projects. With all these choices, I wanted to get some insight in the thought process of selecting projects and offset partners to work with.

[Video Footage]

The frame transitions to Adrian Gane facing and speaking to the camera.

[Text Displays]

Adrian Gane

Etihad Airways

[Adrian Gane]

We looked at a number of suppliers and experts in the field who are involved in the carbon offset space. It's a relatively new discipline, but the great thing is Shell has been doing it a longer time than most actually - probably 10, 15 years. We were very confident with their projects in terms of having an additionality aspect of carbon dioxide sequestration, including biodiversity and community as well. It's important that we work together. We've got aircraft, who'd been offset, we've got fuel producers who are offsetting or coming up with new technologies, giving us new ideas, how we can get around the planet more sustainably. That's great news for everybody.

[Video Footage]

The frame transitions to Alex Mecharas facing and speaking away from the camera.

[Alex Mecharas]

So is it a kind of, if you're going to do it, you've got to do it in the right way?

[Video Footage]

The frame transitions to Adrian Gane facing and speaking to the camera.

[Adrian Gane]

That's absolutely right. Yep, and we think it's a trend that will continue.

[Video Footage]

The frame transitions to Alex Mecharas facing and speaking to the camera.

[Alex Mecharas]

One type of offset that checks all the boxes that Adrian was speaking about is a Nature Based Solutions. It’s well-proven that nature has the potential to provide up to a third of the climate solution by 2030. And Duncan can tell me more on this subject.

[Video Footage]

The frame transitions to Duncan Van Bergen facing and speaking to the camera.

[Text Displays]

Duncan Van Bergen

Former VP, Shell Nature Based Solutions

[Duncan Van Bergen]

Nature Based Solutions is really the sum of all the activities you can undertake to work together with nature, be it forests or wetlands or mangroves or grasslands, or even agriculture to sequester more CO₂ and to avoid the emissions of greenhouse gases into the atmosphere, doing that as part of contributing to addressing climate change.

[Video Footage]

The frame transitions to Alex Mecharas facing and speaking to the camera.

[Alex Mecharas]

Can you give me an example of where Shell has these Nature Based Solutions? Because I know there are many places where these projects are.

[Video Footage & On Screen Infographic]

The frame transitions to Duncan Van Bergen facing and speaking to the camera. It then transitions to a map of South East Asia. The island of Borneo is highlighted, and zoomed into. On Borneo, the area where the Katingan Mentaya project is located is highlighted and zoomed into. The frame then cuts to a drone shot of a small group of buildings surrounded by a forest. It then cuts to a lady trimming the leaves of a small tree, then a group of ladies carrying a small tree each.

[Duncan Van Bergen]

I'm based in Singapore, Southeast Asia, particularly the Island of Borneo where the Katingan Mentaya project is. The project has been successful in developing new ways of enhancing livelihoods, including agroforestry, and the ecosystem is conserved.

[Video Footage]

Drone shot of a river with a dozen small boats in Katingan Mentaya. The frame transitions to another drone shot above the canopy of a large forest.

[On Screen Text]

3% of land covered globally are peatlands

10% of greenhouse gas emissions contributed by damaged peatlands

Source: International Union for Conservation of Nature

[Alex Mecharas]

The Katingan Mentaya project protects peatland habitats in Central Kalimantan, Indonesia. In fact, this is one of the schemes that Etihad invests in. Peatlands are a type of wetlands that cover 3% of land globally and are the largest natural carbon store on land. Damaged peatlands contribute about 10% of greenhouse gas emissions from the land use sector.

The frame transitions to Duncan Van Bergen facing and speaking to the camera.

[Duncan Van Bergen]

The project is out there to help with the conservation of more than 150,000 hectares of very biodiverse, very unique peat, swamp forests.

[On Screen Infographics]

Shows 150,000 Hectares being compared to 3.5 times the size of Venice, which is equivalent to 7.5M Carbon Credits, and in turn equivalent to 17M Economy Class Transatlantic Flights (by an individual passenger).

[Alex Mecharas]

150,000 hectares is roughly 3.5 times the size of Venice. And the amount of CO₂ stored there, amounts to approximately 7.5 million carbon credits. That's the equivalent to 17 million transatlantic single economy, class flights between London and New York!

 [Video Footage]

The frame transitions to a split screen of Alex Mecharas and Duncan Van Bergen.

[Alex Mecharas]

It's a whole chain, isn't it? Ultimately to prevent deforestation, it’s not as simple as simply marking an area down as conserved, but it's about what was causing that deforestation in the first place. And in this case, it's about protecting the livelihoods of those who depend on the environment.

[Video Footage]

The frame transitions briefly to Duncan Van Bergen facing and speaking to the camera. As he speaks, we footage of a village in Katingan Mentaya, firstly of children playing, then focusing on 2 Indonesian flags being flown outside a small house with a metal sheet roof. The frame then cuts to a group of ladies riding their scooters down a dirt trail, and then to them planting a small tree.

[Duncan Van Bergen]

Community is key. There are 34 villages in and around the Katingan Mentaya project area and the project, really the key essence of it, is working together with these communities to make sure that their livelihoods, their jobs, their day-to-day lives are in harmony with conserving that unique ecosystem.

[Video Footage]

The frame transitions to Alex Mecharas facing and speaking to the camera.

[Alex Mecharas]

And this project itself, of course, has a lot to protect in terms of the biodiversity, which is quite unique to this part of Indonesia.

[Video Footage]

The frame transitions to Duncan Van Bergen facing and speaking to the camera.

[Duncan Van Bergen]

I’ve visited and I've been so impressed by what this project does, and I've had the chance to look at some of the footage from the camera traps, that are placed here and there through the project area, as part of research projects that have been ongoing.

[Video Footage]

The frame cuts to footage of a clouded leopard, then a pangolin, then sun bear, and an orangutan.

[Duncan Van Bergen]

I've seen footage of clouded leopards. I've seen pangolins through the areas, sun bears. There are quite a few orangutans throughout the project area. So yeah, it's quite unique in that respect as well.

[Video Footage]

The frame transitions to Alex Mecharas facing and speaking to the camera.

[Alex Mecharas]

Given that these are nature based solutions that are protecting communities, biodiversities, offering us longer term solutions like carbon credits, but also enabling us to be able to offset our own carbon. I think this is the journey that the entire aviation sector will continue. You know, we all have a role to play, as we mentioned, we're definitely be now making those steps in the right direction.

[Video Footage]

The frame transitions to Duncan Van Bergen facing and speaking to the camera.

[Duncan Van Bergen]

Yeah, Alex, when I think of aviation, I've always thought of aviation as the business of dreams.

[Video Footage]

The camera pans across, looking upward at the canopy of some trees. It is revealed that Duncan Van Bergen is walking through the lush Singapore Botanic Gardens. The frame cuts to close ups of plants and flowers.

[Duncan Van Bergen]

People go on honeymoon, people make their first big international trip, but also, it's dreams of creating business, to create wealth, to help people move forward. So if we can combine that business of dreams together with, ‘Hey, let's do the dreaming in a responsible, sustainable way’, then for sure, we have to be onto something.

[Video Footage]

The frame transitions to Alex Mecharas facing and speaking to the camera.

[Alex Mecharas]

Duncan. I couldn't have put it better myself.

 [Video Footage]

A commercial aircraft takes off from Heathrow Airport. The frame transitions to Alex Mecharas facing and speaking to the camera.

[Alex Mecharas]

One of the ways that we're able to fly and emit less is by offsetting our unavoidable carbon emissions. That's through engaging and ultimately putting our dollars into schemes and projects that really matter. Those that make a difference, like the Katingan Mentaya project in Indonesia, for example. You know, no one is saying this is going to be easy, and carbon offsetting alone isn't going to be the only solution. But what it does do is it puts us on the right track to making that first step and giving us the opportunity to be ready, to take further steps. We've all got this common goal. So if we did all get involved and it really is going to be a collaborative approach, that's required airlines, airports, businesses, all stakeholders of our aviation ecosystem, we can work together to achieve progress in this area.

[Video Footage]

A commercial aircraft flies high in the sky from left to right, The frame transitions to Alex Mecharas facing and speaking to the camera.

[Alex Mecharas]

Join me on the next episode, as I'll be looking at more ways and how we can fly and emit less, including Sustainable Aviation Fuel and how it helps move us towards flying carbon neutral.

[Audio]

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[Graphic]

Shell Pecten centred on a white background.

[Text displays]

Find out more about Aviation Tomorrow: The Future of Flight at: https://aviation.shell.com/Aviation Tomorrow

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