The second contains a case study of how FTSE-100 insurance giant RSA Group use Ecometrica’s environmental accounting software Our Impacts to reduce their emissions, meet regulatory requirements and compile otherwise complicated CDP reports.

Use the link below to view the articles in full on www.computing.co.uk:

Essential Guide to Carbon and Energy Management >

Emissions management case studies: RSA and Swiss Post >

Pratibha Syntex has won accolades domestically and internationally, produces around 60 million garments every year and has a strong ambition to be seen as a leader in driving societal and environmental responsibility.

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On the 1^st January 2012, all emissions from airlines flying in and out of the European Union came under the jurisdiction of the EU Emissions Trading scheme (ETS).  Airlines will have to account for, and acquire an emissions permit for each tonne of carbon dioxide (CO₂) emitted by their flights.  All flights arriving at or departing from EU airports are covered, regardless of the nationality of the aircraft operator.

The total amount of new permits released to accommodate the introduction of air travel in the ETS will be calculated as 97% of a benchmark emissions level from the period 2004–06.  The growth in air travel since this period means that airlines will have to purchase extra allowances to cover current emissions levels.  It seems likely that for 2012 around 30% of carbon dioxide emissions from the airline industry will need to be covered by purchases through an ETS ‘aviation auction’ and purchases on the ETS market, while around 70% of permits will be freely given to airlines.

Data taken from: http://ec.europa.eu/clima/policies/transport/aviation/index_en.htm

There has been much debate on what the effect on prices and profits will be for consumers and airlines respectively.    A recent article in the Journal of Transport Management has suggested that the allocation of free permits to airlines could deliver windfall profits to the industry of up to $2.6 billion over eight years if airlines are able to pass on all the extra costs of the ETS to consumers (Malina 2012).

Airline Reaction

Following the European Court of Justice’s rejection of an American challenge to the legitimacy of including American airlines in the ETS, Hilary Clinton announced that if US airlines are not exempted from the EU ETS then the US government will be “compelled to take appropriate action” in response.  Whether this represents the opening shots of a transatlantic trade war, or is a hollow demonstration of support for the US airline industry remains to be seen.

The Chinese Air Travel Association (CATA) has said that its member airlines will not cooperate with the ETS and refuse to take part in the emissions allocation scheme.  The deadline before which permits must be purchased for 2012 is the 31^st March 2013; so there is time for further negotiations.  The fine for non-compliance with the scheme is a penalty of €100 per tonne of CO₂ emissions.

Ryanair’s communications director recently announced that including aviation in the ETS “reduces the competitiveness of EU air transport with yet another misguided ‘environmental’ tax, which does nothing for the environment but penalizes EU consumers and families” (Ryanair Press Release 2012).

In theory the EU ETS should be less burdensome on efficient operators such as Ryanair.  However, the ETS will always represent an additional cost to airlines, and this is likely to be the reason for Ryanair’s opposition to the scheme.

The price response to the ETS has been for airlines to add surcharges to the cost of flights.  Delta was amongst the first to announce a $3 extra charge on transatlantic flights; United Continental, US Airways and American Airlines then immediately followed suit.  Within the EU, Ryanair has announced a surcharge of €0.25 on all European flights.

Using Defra emission factors, we can estimate how much of the ETS costs these airlines are passing on to customers[1]:

Transatlantic flights

- For a long-haul flight from London to New York (5,576km), an economy class passenger is (based on Defra’s emission factors, including the indirect route uplift of 9%) responsible for emitting approximately 489.69kg of CO₂.

- Assuming the current ETS price of around €8 a tonne, and that the airline must purchase permits to cover 30% of total emissions, the extra cost to airlines on a London to New York flight will be €1.18 ($1.54 – at 6/02/2012 exchange rate).

The response from the American airlines, to impose a surcharge of $3 on transatlantic flights, is effectively the passing on of double the cost of the EU ETS scheme to customers.  In their defence, the airlines might argue that they must protect themselves against potential volatility in the carbon price.  Indeed the lobbying from the US airline industry and the relatively high surcharge may be based on a presumption of future price rises.

Ryanair European flights

- The average Ryanair flight distance was 1,064km in 2010 (Ryanair annual report 2010)

- For this average Ryanair flight, and based on Defra emission factors, 105.98kg of CO₂ is attributed to each passenger.

- Ryanair has one of the highest passenger loading factors in the airline industry (their planes carry 5% more passengers than the industry average; Brighter Planet report 2011), so the emissions attributed to each passenger on a Ryanair flight will actually be less; this calculation is adjusted to reflect Ryanair’s higher efficiency.

- Assuming the ETS price remains at around €8 a tonne, and that the airline must purchase permits for 30% of total emissions, the extra cost to the airline per passenger as a consequence of joining ETS will be approximately €0.24.

Ryanair’s response appears to be far more generous than the transatlantic operators as their surcharge of €0.25 only covers slightly more than 100% of the extra ETS costs at the current carbon price.

References

Brighter Planet Report (2011) Air Travel, Carbon and Energy Efficiency http://www.ryanair.com/doc/about/ryanair_brighter_planet_2011.pdf

Defra (2011).  2011 Guidelines to Defra/DECC’s GHG Conversion Factors for Company Reporting  http://archive.defra.gov.uk/environment/business/reporting/pdf/110819-guidelines-ghg-conversion-factors.pdf

European Commission: Reducing emissions from the aviation sector http://ec.europa.eu/clima/policies/transport/aviation/index_en.htm

Malina, R., (2012). The impact of the European Union Emissions Trading Scheme on US Aviation.  Journal of Air Transport Management 19: 36–41

Ryanair website – passenger load details: http://www.ryanair.com/en/investor/traffic-figures

Ryanair annual report 2010: http://www.ryanair.com/doc/investor/2011/Annual_Report_2010_Final.pdf

Ryanair press release (2012) Ryanair to Introduce ETS Levy to Cover New EU Eco-looney Tax http://www.ryanair.com/en/news/ryanair-to-introduce-0-25-euro-ets-levy-to-cover-new-eu-eco-looney-tax

Commenting on the investment, Seth Tabatznik, director of Berti Investments, said: “At Berti Investments we aim to benefit society by investing in scalable businesses that can make a significant environmental impact. Ecometrica makes a perfect fit, with their market-leading solutions and in a sector with significant growth potential. Backed by clients, such as RSA, BP and Petkim, they are already expanding on a global scale.

“Carbon accounting is becoming increasingly common for many large and mid-sized companies, due to a number of external pressures, and we’re seeing that the companies that have transparent greenhouse gas accounting processes in place are actually performing better. To put it simply, you can’t visibly improve what you can’t measure.”

“Berti Investments will use Ecometrica’s greenhouse gas accounting service to measure its own carbon impact, and the impact of all its investments, including those in its landmark Berti Green Accelerator programme.”

Dr Richard Tipper, chief executive of Ecometrica, added: “Berti’s investment will support our global ambitions and underscores the credibility of our success with developing market-leading services and solutions. We share Berti’s values and commitment to promoting best green business practices and are delighted to have obtained their support. We look forward to working with Berti Investments and its portfolio of companies.”

Berti Investments was set up in early 2011, with a £5m loan from the Bertha Foundation, to invest in innovative, growing, entrepreneurial businesses in the UK that focus on reducing carbon emissions. All profits made by Berti Investments will be reinvested.

The company recently launched its new Accelerator programme, delivered in partnership with James Caan’s Hamilton Bradshaw Impact Partners (HBIP). The initiative will annually select three low-carbon businesses with high impact and growth potential, and award them with six months of business support from HBIP and the opportunity to receive funding of up to £1m each from Berti Investments.

Applications for the Berti Green Accelerator close on 17 April 2012.

Read more about this story around the web:

Berti Investments >
Herald Scotland >
The Scotsman >
Real Deals >
Growth Business >
Greenwise >
AltAssets >

Click on the comic to read the full fact sheet!

An economy class one‐way ticket from London to Kuala Lumpur will emit approximately one tonne of carbon dioxide equivalent (CO₂e), based on the most recent emission factors released by Defra (Defra 2011). If you were to travel with a first‐class seat, the calculations must be adjusted. The difference in carbon emissions attributed to a first‐class or an economy class ticket is caused by a number of factors, but Defra estimate that a long‐haul first‐class ticket contributes 0.38540kg CO₂e per passenger kilometre, exactly four times the emissions attributed to an economy‐class ticket.

To read the full paper, use the download link below, or click here to view the Ecometrica Webcomic: The One-Tonne Flight

The Government’s cloud strategy has been estimated by some experts to have the potential to reduce public sector technology costs by some £12bn per year by 2020.

The news follows the announcement last month that Edinburgh-headquartered Ecometrica had received significant financial backing from Highgate Tech Fund, a leading investor in early stage software companies, to support the company’s ambitious growth plans.

Dr Richard Tipper, chief executive of Ecometrica, said: “We have invested significantly in our SaaS capabilities over the last 18 months and the G-Cloud programme is a timely recognition of the company’s expertise in the design and supply of such solutions. The team has a clear commitment to developing flexible and platform-independent solutions around the SaaS model and this award clearly recognises our capabilities across both the cloud and carbon accounting sectors.”

See this story around the web:

Software firm lands on procurement G-Cloud (Scotsman.com)

Read more about the UK Government’s G-Cloud Procurement Framework:

Cloud app store launches public sector IT buying revolution (ukauthority.com)

G-Cloud’s successful suppliers get Cabinet Office nod (Guardian.co.uk)

This paper sets out how to correctly report the emissions associated with purchased electricity, and briefly notes some cases where providers of reporting/measurement guidance have got it wrong.