The International Air Transport Association has recently launched the Aviation Carbon Exchange (ACE), a new tool to help airlines meet their climate commitments. ACE is the first centralized, real-time marketplace that is integrated with the IATA Clearing House for the settlement of funds on trades in carbon offsets. IATA’s Clearing House ensures that ACE can offer a seamless and secure settlement system which guarantees payment and delivery of the carbon credits. JetBlue Airways is the first airline that made the transaction in the ACE platform.
“Airlines are serious in their commitment to reduce emissions. And they need a reliable tool to access quality carbon credits in real time. ACE will be a key tool helping airlines efficiently manage these important transactions,” said Alexandre de Juniac, Director General and CEO of IATA.
Airlines reiterated the industry’s commitment to cut net emissions to half 2005 levels by 2050 in a resolution of the 76th IATA Annual General Meeting. A key step is the Carbon Offsetting and Reduction Scheme for International Aviation which will deliver carbon neutral growth for international emissions from 2021. Airlines are also buying carbon credits as part of individual carrier commitments or to offset domestic operations.
“Our planet is physically changing, as are the expectations of our customers, crew, members and investors,” said Robin Hayes, CEO of JetBlue and Chair of the IATA Board of Governors.
“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 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,” said Hayes.
ACE, which has been developed in conjunction with commodities trader Xpansiv CBL Holding, provides airlines and other aviation stakeholders (such as airports and aircraft manufacturers) the opportunity to offset their carbon footprint by purchasing credits in certified projects that reduce carbon emissions. Carbon reduction programs on ACE include forestry projects, clean wind energy operations, protection of eco-systems and remote community-based projects to cut emissions.
The International Air Transport Association (IATA) is the trade association for the world’s airlines, representing some 290 airlines or 82% of total air traffic. We support many areas of aviation activity and help formulate industry policy on critical aviation issues. We improve understanding of the air transport industry among decision makers and increase awareness of the benefits that aviation brings to national and global economies. Advocating for the interests of airlines across the globe, we challenge unreasonable rules and charges, hold regulators and governments to account, and strive for sensible regulation. For over 70 years, we have developed global commercial standards upon which the air transport industry is built. Our aim is to assist airlines by simplifying processes and increasing passenger convenience while reducing costs and improving efficiency.
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