MIAMI – Yesterday, IATA announces it has launched the Aviation Carbon Exchange (ACE). This exchange is meant for airlines to help offset carbon emissions.
The ACE is part of IATA Clearing House and offers a real-time marketplace to allow airlines to pay into projects worldwide. It has been developed with Xpansiv CBL Holding, a commodities trader. By using this tool, the airlines will be able to receive their Carbon Credits efficiently.
Types of projects include clean energy projects, forestry projects and projects to protect eco-systems, as well as remote community project.
The aviation industry has committed to cut emissions by 2050 to half of 2005 levels. However, as the technology is not yet available for carbon neutral flight, the Carbon Offset-ting and Reduction Scheme for International Aviation (CORSIA) will take place from 2021. The CORSIA scheme will have “carbon neutral growth for international emissions”, and airlines can also use the ACE to offset emissions from domestic flights.
Through the use of CORSIA, and taking into account the Covid-19 pandemic, the expectation is that the net carbon emissions from aviation will not exceed 2019’s levels.
The First Trade
The first trade on the ACE has already been completed. JetBlue used the exchange to help fund the Larimar wind farm in the Dominican Republic. The project, which began work in 2015, is expected to reduce emissions by 200,000 tons of CO2 per year.
The CEO of JetBlue and Chair of IATA Board of Governors, Robin Hayes, states that “While our industry’s short-term priorities are focussed on COVID-19 recovery, now is the time to rebuild operations in more sustainable ways such as adopting Sustainable Aviation Fuels (SAF) and setting clear strategies to reduce net aviation CO2 emissions.”
“The Aviation Carbon Exchange will help us continue to meet our climate commitments by providing simplified and transparent access to legitimate, third-party certified carbon offsets.”
Featured image: IATA ACE website.
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