Presentation by

Mr. Arturo BENITO

Director Fleet Planning & Environment

IBERIA

Chairman of the Infrastructure & Environment Committee of the AEA

Brussels 24 October, 2005

ECCP STAKEHOLDERS’ CONFERENCE

AEA

EBAA

EEA

ERA

IACA

A SINGLE VOICE FOR A JOINT MESSAGE

Emissions from Fossil Fuels Mio tonnes CO2

1990 1995 2001

95/90 (% p.a.)

01/95 (% p.a.)

% of EU

EU 15 3075.0 -0.1 3052.0 +0.7 3174.5 100

Electricity & heat product. 998.8 - 0.9 952.8 + 0.5 980.8 30.9

Energy branch 130.1 + 2.4 146.6 - 0.3 143.8 4.5

Industry 572.4 - 1.8 523.6 - 0.8 500.3 15.8

Households, commerce 638.0 - 0.3 628.3 + 0.3 639.1 20.1

Transport 735.7 +1.7 800.7 + 2.2 910.5 28.7

Of which:

Road Transport 625.0 + 1.6 675.6 +2.0 762.3 24.0

Air Transport 82.2 + 3.2 96.2 + 4.6 126.0 4.0

Inland Navigation 19.6 + 1.0 20.5 - 5.0 15.1 0.5

Railways (1) 8.9 - 1.1 8.4 - 3.0 7.0 0.2 Source: Eurostat Notes: (1) : without fossil fuel for electricity production

AVIATION CO2 IN EUROPE

EMISSIONS CONTAINMENT POLICY – FOUR PILLARS

TECHNOLOGICAL PROGRESS

INFRASTRUCTURE IMPROVEMENTS

OPERATIONAL MEASURES

ECONOMIC INSTRUMENTS

ACARE ACTION

Environmental objectives:• 80% reduction in NOx

• 50% reduction in fuel burn and CO2 per passenger km

• 50% reduction in perceived noise per aircraft movement

Proposals include airframe and engine technologies, alternative fuels

INDUSTRY EXPENDITURE ON RT&D OVER 14% OF TURNOVER ANNUALLY

4,31

4,514,65

4,574,68

4,974,98

5,145,145,19

5,31

5,64

6,2

4

4,5

5

5,5

6

6,5

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

litr

es

/ 1

00

pk

m

l/100pkm

AN EXAMPLE OF TECHNOLOGICAL INNOVATION

4.3 l/100pkmaverage specific fuel consumption of the entire passenger fleet in 2003

30 %Reduktion seit 1991

Source: Lufthansa

IPCC REPORT - EMISSIONS REDUCTION OF 6-

12%, IF ATM IMPROVEMENTS IMPLEMENTED

WITHIN 15 YEARS

EU TO INTENSIFY EFFORTS TO DEVELOP THE

SINGLE SKY AND SESAME PROGRAMMES

POLITICAL & BUDGETARY SUPPORT NEEDED

FROM THE TEN-T

2. INFRASTRUCTURE IMPROVEMENTS

IPCC REPORT - EMISSIONS REDUCTION OF 2-6%

THROUGH OPERATIONAL MEASURES

EU TO PROMOTE ICAO CIRCULAR 303 WHICH

IDENTIFIED OPERATIONAL MEASURES TO

LIMIT/REDUCE AIRCRAFT EMISSIONS.

3

3. OPERATIONAL MEASURES

TAX – NOT LEGALLY APPLICABLE TO INTERNATIONAL FLIGHTS; NEGLIGIBLE

ENVIRONMENT BENEFITS CHARGES – COST-RELATED, EITHER REVENUE-

NEUTRAL OR REVENUES DIRECTED TO

ENVIRONMENTAL R&D EMISSIONS TRADING SYSTEM – RECOGNISED BY

ICAO AS POTENTIALLY ENVIRONMENTALLY

EFFECTIVE AND COST-EFFICIENT APPROACH

4. ECONOMIC INSTRUMENTS

1. COVERAGE - CO2 ONLY

2. GEOGRAPHICAL SCOPE – IDEALLY WORLDWIDE, BUT IF IT IS AN EU ETS: INTRA-EU ROUTES

3. TRADING ENTITY - AIRCRAFT OPERATOR

4. ALLOCATION METHOD: ALLOWANCES TO BE GRANTED TO THE AVIATION SECTOR AT EU LEVEL, BASED ON GRANDFATHER RIGHTS

5. EU ETS COULD BE AN INTERIM OPTION INTERPLAY WITH KYOTO - OBJECTIVE: EXTENSION OF THE PROTOCOL BUT RESTRICTED TRADE WITH THE OTHER SECTORS CURRENTLY COVERED BY THE

6. DISTRIBUTION METHOD – BENCHMARKING, TO TAKE INTO ACCOUNT EARLY EFFORTS MADE BY AIRCRAFT OPERATORS

7. MONITORING METHOD - MEASURED TRIP FUEL BY AIRCRAFT OPERATORS

AVIATION INDUSTRY PROPOSAL – EMISSIONS TRADING

11

EQUAL ACCESSIBILITY - AIR

SUSTAINABLE MOBILITY

AVIATION IS THE ONLY MODE OF TRANSPORT

WHICH CONNECTS CARGO AND PASSENGERS

FROM THE PERIPHERAL REGIONS OF EUROPE

TO THE CENTRE, AND EUROPE TO THE REST OF

THE WORLD.