Fact Sheet: Carbon Offsets

• Both individuals and corporations are increasingly aware of the need to reduce their carbon footprint
• This is true for airlines as well. The industry is constantly improving fuel efficiency but passengers and corporate customers also want the opportunity to offset their own emissions created by flying
• Carbon offsets give passengers the opportunity to compensate for their emissions by paying someone to make an equivalent greenhouse gas saving
• Passengers offset their share of a flight’s emissions by investing in carbon reduction projects that generate carbon credits
• Carbon offsetting is entirely voluntary for passengers
• Over 30 airlines run offset programs with different methodologies for calculating emissions and different criteria for offset projects
• Pick up rates (where reported) tend to be low
• This has created the need for a high quality, credible and transparent offset program for airlines

IATA offset program

• IATA launched an industry-wide carbon offset program to meet this demand
• IATA’s carbon offset program offers:
  • Greater clarity to passengers on where their money is going
  • Standard methodologies, best practice
  • Single customer purchase transactions
  • Offset tracking
  • Investing in credible emission reduction projects
  • Independent verification of the program

Managing the IATA carbon offsets program

• CO2 emission calculator is based on the ICAO methodology
• IATA identifies and quality controls the CO2 projects including
• Arranging carbon credit purchase
• Project selection process
• Provision of project information for marketing purposes
• Management and provision of CO2 offset tracking

Current status

• Offset Guidelines (pdf) have been produced
• 16 IATA airlines and two Global Distribution Systems signed up to the program
• TAP was the launch airline on 5 June 2009
• The IATA program is accredited under the UK Government’s offset quality assurance scheme including endorsement of the IATA carbon calculator tool

Updated: March 2010