ghg-inventory-1990-2013

1.AA.3.C Railways
Emissions from the railways subcategory (including both liquid and solid fuels) were
estimated using a Tier 1 approach (IPCC, 2000).
1.AA.3.D Navigation (domestic marine transport)
Emissions from the navigation subcategory in New Zealand were estimated using a Tier 1
approach (IPCC, 2006).
Activity data
1.AA.3.A Civil aviation
The Ministry of Business, Innovation and Employment currently collects aviation fuels
used for international and domestic aviation through the DPFI. The respondents of this
survey are New Zealand’s five main oil companies, namely, BP, Z Energy (formerly
Shell), ExxonMobil, Chevron and Gull (Gull participates only in petrol and diesel sales).
The distinction between domestic and international flights is based on refuelling at the
domestic and international terminals of New Zealand airports. The allocation of aviation
fuels between domestic and international segments has previously been raised by the
ERT. A previous centralised review stated (UNFCCC, 2009):
The National Inventory Report (NIR) reports that the allocation of fuel consumption
between domestic and international air transport is based on refuelling at the
domestic and international terminals of New Zealand’s airports. Currently splitting
the domestic and international components of fuels used for international flights
with a domestic segment was not considered; however, the number of international
flights with a domestic segment is considered to be negligible. The Expert Review
Team (ERT) notes that in 2006, New Zealand began consultations with the airlines
to clarify the situation and improve the relevant Activity Data (AD), and is currently
working on a methodology that will allow for better international and domestic fuel
use allocation. New Zealand is encouraged to adopt the new approach and report
the outcome in its 2010 submissions.
After consultations with different parties, the Ministry of Business, Innovation and
Employment believes that the current data collection methodology is sufficient and robust
enough to ensure all the domestic aviation fuels are reported accordingly and do not result
in missing or misallocation of domestic fuel use. Further information on the methodology
used is given below.
In the DPFI, the oil companies report quantities of different fuels (jet A1, aviation
gasoline and kerosene amongst others) used for the purposes of international and
domestic transport. The companies allocate the fuel to international or domestic transport
based on whether or not they charge GST on the fuel sold – GST is not charged when the
destination of a flight is outside of New Zealand.
Some international flights from New Zealand contain a domestic leg, for example,
Christchurch–Auckland–Tokyo. Industry practice is to refuel at both points with
sufficient fuel to reach the next destination so that the domestic leg will be coded
appropriately. By this logic, fuel used for the domestic leg will attract GST and therefore
be coded as domestic, and the international leg, which does not attract GST, will be coded
as international.
Although this is a supply-side approach, the Ministry of Business, Innovation and
Employment believes the split of international and domestic transport to be accurate
because BP, Z, ExxonMobil and Chevron control 100 per cent of the aviation fuels
market in New Zealand. Based on the above findings, the Ministry of Business,
Innovation and Employment believes that the current data collection methodology is
New Zealand’s Greenhouse Gas Inventory 1990–2013 77