Thursday, February 18, 2016

The ICAO's New Aircraft Emissions Standards Are a Complete Joke

The ICAO, the airline industry's global governing body, recently came out with new carbon emissions regulations for commercial aircraft. Aircraft manufacturers and airlines must meet the new emissions standards for aircraft currently in production beginning in 2023 with a cutoff date in 2028. New aircraft, such as the A330neo and the 737MAX, must meet the new emissions regulations beginning in 2020. The new regulations are expected to be passed by the ICAO's governing council this fall. 
The new emissions regulations are, to put it simply, a complete joke. By 2028, most airlines will have retired current generation aircraft such as the 737 Next Gen, the A320ceo, or the 777 in favor of more fuel efficient next generation aircraft. In fact, manufacturers are on track to cease the production of current generation aircraft before 2028. The emission regulations on next generation aircraft, which take effect beginning in 2020, are not even remotely strict. The A320neo, which began production last year, easily beats the 2020 emissions standards.  
Over the past decade, high fuel prices have pushed airlines to purchase increasingly more efficient aircraft. Cost reduction has also become very important for airlines, especially with the entrance of ULCC carriers. With fuel being an airline's single biggest cost, ordering more fuel efficient aircraft is an obvious investment for airlines.  
With the market already pushing airlines to purchase more efficient aircraft, the new regulations will not spur any more investment from manufacturers into more environmentally friendly aircraft. 
         The ICAO, which is known to be sympathetic to the airline industry, has stood on the sidelines for years even as global aircraft emissions have risen and the urgency to combat climate change has grown. The ICAO's first attempt to limit emissions is as effective as doing nothing. While airlines and  manufacturers are praising the new emission standards, the ICAO proves once again it is more focused on catering to the airline industry than instituting effective market based emissions regulations.

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