ISTAT Jetrader - Autumn 2021 - 26

Carbon offsets remain controversial. CO2
emissions are still created, and the
types of offsets - and those firms that advise on them - are varied. There isn't
clear proof that offsets actually work to the extent professed.
We might also see the introduction of additional (or new)
taxes on jet fuel, higher taxes on tickets, and for older
(less fuel efficient) aircraft, higher landing charges or even
limited slots. These measures could have multiplier effects
elsewhere - for example, migrant workers who enable the
tourism and travel industry in another country but also remit
income to support their own families back home.
The last major risk is consumer sentiment. " Flygskam "
(Swedish for " flight shaming " ), coined in 2018, and its
cousin " Tagskryt " ( " train brag " ), have entered the lexicon.
While the push to reduce travel was gaining energy preCOVID-19,
it is unclear if, or when, this momentum will
return. In 2019, Swedish domestic travel fell 4% versus
2018, in part due to flygskam. While 2020 saw passenger
flights decrease by 60% versus 2019 due to COVID-19, and
while we are witnessing a return to normality in several
domestic markets, a combination of flight shaming and
a potential reduction in business travel (and concomitant
increase in virtual meetings) may lead to reduced travel
overall. Travelers may decide to spend more time (and
money) closer to home; recreational vehicle sales have
26 * THE OF F I C I AL PUBL I CAT I ON OF ISTAT
jumped 54% (#vanlife is a thing) and consumers may decide
to fly less in the future.
What are the realistic short-, medium- and long-term
solutions to CO2
emissions in aviation?
There are broadly seven categories, each of which has its
advantages and disadvantages:
1. Carbon offsets
2. Better air traffic management
3. New production aircraft and engines (e.g., neo and MAX)
4. Sustainable aviation fuel (SAF)
5. Step change technologies (e.g., open rotor, trussbraced
wings, hybrid-electric)
6. New technologies (e.g., purely electric- or
hydrogen-powered)
7. Carbon sequestration/direct air capture
Carbon offsets remain controversial. CO2
emissions are
still created, and the types of offsets - and those firms that
advise on them - are varied. There isn't clear proof that
offsets actually work to the extent professed. Nevertheless,
provable carbon offsets (or cap and trade) are the only
significant way to reduce emissions at present.
ISTAT Jetrader - Autumn 2021

Table of Contents for the Digital Edition of ISTAT Jetrader - Autumn 2021
