Icelandair Group Annual Report 2007

The Environment
37
Icelandair Group aims to create long-term growth in
shareholder value through sustainability. The Company’s
focus is, therefore, on high quality resource management
in all its operations, which leads to a lower environmental
impact and lower costs. Icelandair Group,
along with rest of the aviation and tourism industry, is
committed to reducing its environment impact.
For airlines, three key elements relate to their contribution
to environmental protection. The first is the
amount of fuel consumed by the aircraft, as fuel combustion
causes a rise in carbon dioxide, assumed to
cause global climate change. The second element is
the noise generated by air traffic at airports, and the
third is the emission of pollutants by aircraft engines.
Fuel consumption and fuel efficiency
The production of so-called greenhouse gases, of
which CO 2 is the most important, is in direct relation to
the fuel consumed. Therefore lower fuel consumption
results in lower levels of CO 2 . Aviation accounts for
2% of worldwide CO 2 emissions from fossil fuel use,
according to a forecast by the UN International Panel
on Climate Change. Aviation is responsible for 12% of
CO 2 emissions from all transport sources, compared
to 76% from road transport, according to the Stern
review. The aircraft types operated by Icelandair are
amongst the most fuel-efficient available. They generally
use on average about 2.8 litres of fuel per 100
passenger kilometres. Latcharter operates the Airbus
A320, which averages about 2.0 litres of fuel per 100
passenger kilometres. By comparison, today‘s modern
aircraft consume, on average, 3.5 litres per 100 passenger
kilometres.
Aircraft noise
International requirements in this field are stated in
ICAO Annex 16, “Environmental Protection”, Vol. I. It
prescribes certain maximum noise levels for aircraft at
three designated noise-measuring points. All aircraft
operated by Icelandair have since October 1990 fully
complied with the most stringent international requirements
of ICAO Annex 16, Vol. I.
Aircraft engine emissions
According to ICAO Annex 16, “Environmental Protection”,
Vol. II, unburned Hydrocarbons (HC), Carbon
Monoxide (CO), Oxides of Nitrogen (Nox) and smoke,
emitted by aircraft engines, shall be controlled. All aircraft
operated by Icelandair have since October 1990
fully complied with the most stringent requirements
of ICAO Annex 16, Vol. II concerning aircraft engine
emissions. Over the past 15 years, oxides of nitrogen
(NOX) from aircraft engines have been progressively
reduced by 50%.
Carbon offsetting
Icelandair became the first Icelandic airline to offer
a full carbon offsetting program through the Iceland
Carbon Fund in 2007. The goal of the Iceland Carbon
Fund (ICF) is to reduce the level of carbon dioxide in
the atmosphere by sequestering carbon in vegetation
and soils. The planting, done under the auspices of
the ICF, takes place in designated areas under a longterm
(90-year) contract with the ICF. The planting and
supervision of ICF forests is performed by local forestry
associations or other contractors. The work is
certified and audited by KPMG Iceland.
Emissions trading
Emissions trading is one of the economic instruments
that can be used to address climate change, together
with technological progress, infrastructure improvements
and operational best practices. Today, emissions
trading is not applicable to the aviation sector
except in the United Kingdom, through a voluntary
scheme.
However, in December 2006, the European Commission
proposed legislation that would, if approved,
apply an emissions trading scheme (ETS) to the aviation
sector from 2011. In addition, the International
Civil Aviation Organization (ICAO) – which is the UN
body dealing with aviation at the worldwide level – has
adopted universal guidance for states that choose to
consider the implementation of emissions trading.