Heathrow. A new airport for London. Terminal 5

For further information on BAA Heathrow, please contact Simon Baugh: Telephone +44 (0)20 8745 5199 Email [email protected]

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Heathrow and climate change

Heathrow and climate change

Overwhelming scientific evidence now clearly indicates that the world’s climate is changing and the cause is very likely to be human activity.1

Executive summary

The facts about climate change

Aviation’s contribution to climate change

Addressing emissions from flights

How we are cutting emissions from airport buildings How we are reducing emissions from road traffic and airport vehicles

The worst effects of climate change could be catastrophic for our planet and might include heat waves, floods and droughts, melting ice caps, rising sea levels, more frequent and severe storms and hurricanes, and damage to ecosystems and agriculture.

How we are curbing emissions on the airfield

But this future is not inevitable. The Stern report on the Economics of Climate Change said “There is still time to avoid the worst impacts of climate change, if we take strong action now.” 2

How we are setting new standards for low-carbon construction

The risks to our planet demand an international response, based on the best available scientific evidence. This brochure aims to explain aviation’s contribution to climate change and set out some of the steps that BAA is taking at a local, national and international level to address Heathrow’s greenhouse gas emissions.

Heathrow’s growth and climate change

Next steps

2 Heathrow and climate change

Heathrow and climate change 3

Executive summary

The facts about climate change

Aviation’s contribution to climate change

Addressing emissions from flights

Climate change is caused by a build up of greenhouse gases in the Earth’s atmosphere. Scientific evidence suggests that human activities such as burning fossil fuels and deforestation have significantly increased the proportion of greenhouse gases in the atmosphere over the last 150 years.3

Aviation’s climate change impact is relatively small but growing. It is responsible for about 6% of the UK’s total CO2 emissions7, and 1.6% of global greenhouse gas emissions.8

Technological advances. Aircraft are becoming more fuel efficient - currently improving by about 1-2% a year.12 However, aviation is predicted to grow more quickly than this. Renewable biofuels and fuel cells may be another way of reducing greenhouse gases.

Carbon Dioxide (CO2) is the primary concern. Other gases that influence global warming include methane, nitrous oxide, ozone, water vapour, and some haloalkanes such as hydrofluorocarbons (HFCs).4 Power generation and deforestation are the two biggest single contributors to greenhouse gas emissions. According to the Stern Review, total carbon dioxide emissions from aviation amount to 1.6% of global greenhouse gas emissions.5 The United States is the world’s biggest greenhouse gas polluter, responsible for 20% of global emissions. China is a close second. The UK contributes 2% of the world’s greenhouse gases.6

4 Heathrow and climate change

Aviation also has non-CO2 impacts. Aircraft in flight cause water vapour (which leads to the formation of contrails and cirrus clouds at altitude) and nitrogen oxides (NOx - which forms ozone, a greenhouse gas, at altitude). These may more than double aviation’s CO2 impact.9 Aviation’s contribution to climate change is growing. The Department for Transport’s central case estimate is that aviation will contribute 21% of the UK’s CO2 emissions in 2050.10 The IPCC’s central case estimate is that aviation will account for 5% of the global human contribution to climate change in 2050 (including aviation’s non-CO2 impacts).11 Airport operations also contribute to greenhouse gases through aircraft emissions on the ground; passengers and staff travelling to and from the airport; vehicles on the airfield; energy used by airport buildings; waste from the airport; and water usage.

Airspace management. Around six million tonnes of CO2 have already been saved by shortening existing air routes and BAA is pushing for a unified system of air traffic management within the EU. This could help cut aviation CO2 emissions by 12%.13 Infrastructure constraints. Airport infrastructure constraints already form part of UK aviation policy but are “an inefficient way of regulating demand” according to the Stern Review.14 Taxes and charges. The main tax on flying is currently Air Passenger Duty. This may reduce demand for air travel but the money raised doesn’t go towards addressing environmental impacts or incentivising clean technology.

How we are cutting emissions from airport buildings Emissions trading. This would force airlines to cut their own emissions or pay for others to do so. It would deliver a clear cut in CO2 emissions in an economically efficient way. The advantages of emissions trading are that the environmental result is clear from the start; carbon dioxide reductions are made in the most efficient way possible; money raised goes directly towards reducing emissions; the quantity of emissions is important, not their source; and it works internationally.

Replacing inefficient terminals with modern buildings. Heathrow East will cut carbon dioxide emissions by around 40% compared to the buildings it replaces. Using on-site combined, cooling heat and power (CCHP). 85% of Terminal 5’s heat needs are provided by combined, heat and power. Optimising the performance of our existing buildings and processes. We run a series of hearts and minds campaigns across the airport, focussed on staff and our partners taking accountability for turning nonessential power off. Installing intelligent building management systems. These automatically turn off machinery that is not in use and dim lights in unoccupied areas. Investing in renewables. Heathrow East will be one of the first major developments to use renewable biomass gasification. Heathrow East will also have photovoltaic solar panels on its roof to turn the sun’s energy into electricity. Reducing water usage. Our rainwater harvesting system reuses 85% of all the rainwater that falls on the Terminal 5 site.

Recycling waste and turning waste into energy. BAA has a target of recycling or composting 40% of its waste by 2010 and 70% of its waste by 2020. We are also investigating the possibility of turning our non-recyclable waste into energy. Trialling innovative zero-carbon electricity. Heathrow will be one of the first sites in Britain to trial generating zero-carbon energy from waste heat.

BAA’s starting point is simple. Aviation’s contribution is growing and we must take action now to curb emissions from flights. Heathrow and climate change 5

Executive summary

HCFCs and HFCs have been virtually eliminated from the Terminal 5 project. How we are reducing emissions from road traffic and airport vehicles

How we are curbing emissions on the airfield

How we are setting new standards for low-carbon construction

Investing in rail. BAA has invested £750 million in building and operating the Heathrow Express service which removes around 3,000 cars a day from London’s roads.

Pre-conditioned Air and Fixed Electrical Ground Power. Aircraft traditionally run one of their engines while they are parked on the ground to power the plane. BAA is installing systems that provide air conditioning and electricity from the terminal buildings so that aircraft can turn off their engines.

Eliminating powerful greenhouse gases in construction. HCFCs and HFCs have been virtually eliminated from the Terminal 5 project.

Improving bus services. BAA subsidises local bus routes around the airport so that all passengers, staff, or local residents can travel for free. Encouraging staff to car share. BAA operates the largest car sharing scheme in Europe. More than 6,000 people from over 300 airport companies are members, and two-thirds car share three times a week. Investing in innovative transport schemes. Our Personal Rapid Transit system (PRT), to be trialled in 2008, will replace traditional buses and coaches, generate zero local emissions, and is more energy efficient than existing vehicles. Cutting the number of delivery vehicles at Heathrow. BAA has opened a centre which consolidates airport deliveries off-site so that multiple deliveries can be made with just one vehicle. This has successfully cut the number of retail deliveries at Heathrow from 49,000 to just 8,300 a year.

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On-airfield airline vehicles. British Airways plans to spend more than £25m on a new fleet of airport vehicles as part of its move to Heathrow Airport’s new Terminal 5 next March. The number of ground vehicles required will fall by just under 40% as a result of the move. Redesigning taxiways. BAA is investing in redesigning taxiways and piers to reduce the amount of congestion on the airfield, cutting the amount of time that aircraft have to run their engines on the ground. Heathrow Clean Vehicles Programme. BAA is promoting the use of alternative fuels at Heathrow to reduce CO2 and NOx emissions by offering a fund of £100,000 to help convert or replace inefficient vehicles.

Terminal 5b

Sourcing sustainable construction materials. Only timber that has been approved by the Forestry Stewardship Council (FSC) has been installed by BAA at Terminal 5. Using recycled materials at Terminal 5. Over 300,000 tonnes of aggregate were processed and reused on site from demolition materials and waste concrete. Crushed green glass from domestic household recycling banks was used as a base for site roads. Pulverised fuel ash, a waste product from power stations, made up 30% of the concrete mixture that was used on site. Recycling our construction waste. Waste materials have been segregated on the Terminal 5 site and over 85% of the waste from the project has been recycled.

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The facts about climate change

What causes climate change? Climate change is caused by a build-up of greenhouse gases in the Earth’s atmosphere. The Earth’s atmosphere is made up of many gases, some of which have a warming effect by trapping the amount of infrared solar radiation in the atmosphere. These are known as greenhouse gases.

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Greenhouse gases are essential for keeping the planet habitable - without them the Earth would be too cold to support life. The proportion of greenhouse gases in the atmosphere has changed significantly over the history of our planet, but scientific evidence suggests that human activities such as burning fossil fuels and deforestation have significantly increased the proportion of greenhouse gases in the atmosphere over the last 150 years15. The world’s pre-eminent climate change scientists have concluded that it is ‘very likely’ that this activity is changing the Earth’s climate.

400 390 380 370 360 350 340 330 320 310 300 290 280 270

58.3 58.1 57.9 57.7 57.5 57.3 57.1 56.9 56.7 56.5 56.3

Heathrow and climate change 9

The facts about climate change

Which gases are greenhouse gases? Carbon Dioxide (CO2) is the primary concern. The human contribution of carbon dioxide in the atmosphere comes primarily from burning fossil fuels. Today it accounts for about 380 of every million molecules in the atmosphere, or 380 parts per million (ppm). Before the industrial revolution atmospheric levels of CO2 had held steady for centuries at around 270 – 280 ppm, but the number is currently climbing by an average of 1-2 ppm a year. There is disagreement about the level at which CO2 would need to be stabilised to avoid the worst effects of climate change. The Government has a target of stabilising CO2 at 550 ppm16, but some organisations estimate that a level as low as 450 ppm might be necessary.17 It does not matter where in the world carbon dioxide is produced – it has the same effect on the atmosphere.18 A molecule of CO2 stays in the atmosphere for about a century.19 Methane (CH4) is 23 times more powerful as a greenhouse gas than carbon dioxide but is prevalent in smaller quantities.20 Methane molecules make up less than 2 ppm of the atmosphere but have risen by 150% compared to pre-industrial levels.21 The main sources of manmade methane are from deforestation, decomposition of waste and rice and cattle production.22

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Nitrous Oxide (N2O) is an agricultural and industrial byproduct.23 It is much more scarce than carbon dioxide in the Earth’s atmosphere – only having concentrations of about 300 parts per billion – but is 296 times more powerful as a greenhouse gas than CO2.24 Other gases that influence global warming include ozone, water vapour, and some haloalkanes such as hydrofluorocarbons (HFCs). Each is thought to have a lesser effect than carbon dioxide – some are powerful greenhouse gases but exist in small quantities, others are more prevalent in the atmosphere but are much weaker.25 If you take into account the relative power of each of these gases and the amount of each gas that is produced by manmade activities it is possible to estimate the overall global warming potential of each gas. The World Resources Institute estimates that carbon dioxide is responsible for 77% of manmade global greenhouse gas emissions, methane 14%, nitrous oxide 8%, and other gases 1%.26

Which countries are most responsible for greenhouse gas emissions today?

Sources of man-made greenhouse gases

The chart (left) shows the relative sources of man-made greenhouse gases. The total amount of man-made emissions produced each year is around 42 gigatonnes of carbon dioxide equivalent. According to the Stern Review, total carbon dioxide emissions from aviation amount to 0.7 gigatonnes or 1.6% of global greenhouse gas emissions.28

% of global emissions United States

20.6

China

14.8

Russia

5.7

India

5.5

Japan

4.0

Germany

2.9

Brazil

2.5

Canada

2.1

United Kingdom

2.0

Italy

1.6

Which activities contribute to climate change?

The map below shows the gases that individual sectors and activities produce and their global warming impact. It is from the World Resources Institute publication, Navigating the Numbers, and is reproduced in the Stern Review.29

Source: The Stern Review27

Emissions per capita (tonnes of carbon equivalent per person) Qatar

18.5

UAE

10.1

Kuwait

9.5

Bahrain

7.0

Australia

6.8

United States

6.8

Canada

6.3

New Zealand

5.8

Brunei

5.8

Luxembourg

5.7

Source: Pew Centre, Climate Data Insights and Observations (2004)

Heathrow and climate change 11

Heathrow and climate change

Aviation’s contribution to climate change Aviation’s climate change impact is relatively small compared to other industries. The total greenhouse gas emissions from UK domestic and international flights were estimated to be about 9.6 million tonnes of carbon equivalent in 2005.30 This represents about 6% of the UK’s total CO2 emissions, and just 0.1% of global CO2 emissions.

UK total CO2 emissions

World-wide, all aviation is estimated to contribute about 1.6% of global greenhouse gas emissions.31 Aviation has two main areas of impact:

Source: Defra Sources of aviation related CO2 emissions



aviation in the air, which has CO2 impacts and non-CO2 impacts



airport related, which can be broken down into four main areas: aircraft on the ground; energy use in airport terminals; building new infrastructure; and transport to the airport.

Of the total emissions from aviation, aircraft in the air contribute around 95% of carbon dioxide emissions and airport related emissions, such as terminal buildings and vehicles on the ground, contribute the remainder. Aviation also has non-CO2 impacts Source: BAA

The effects of aviation on our climate are greater than the carbon dioxide effects alone. Aircraft in flight cause water vapour (which leads to the formation of contrails and cirrus clouds at altitude) and nitrogen oxides (NOx - which form ozone, a greenhouse gas, at altitude) Understanding of the impacts of CO2 is relatively good. For other emissions the science is less certain. The Inter-Governmental Panel on Climate Change (IPCC) estimated in 1999 that the nonCO2 impacts from aviation may

12 Heathrow and climate change

be 2-4 times greater than the impact from carbon dioxide alone.32 A more recent study quoted in the Stern Report suggests that the impacts may be closer to twice the CO2 impact alone.33 Neither study includes the highly uncertain effects of the formation of cirrus clouds by aircraft vapour trails. There is significant scientific debate over how best to compare these different impacts, which have very different timescales: CO2 lasts in the atmosphere for about 100 years, whereas contrails may last for only a few hours. The Department for Transport recently stated that, because the non-CO2 impacts of aviation may be double the CO2 impacts alone, the proportion of UK greenhouse gases attributable to aviation may be around 13%.34 However, aviation is not the only industry that has non-CO2 climate change impacts – the estimate for other sectors ranges from 1.1 to 1.5 times the impact of CO2.35 Further scientific research is needed to address the non-CO2 impacts of aviation. BAA is working in partnership with the UK Government and several leading universities to sponsor research into these non-CO2 effects as part of the OMEGA programme. Further details of this research can be found at http://www.omega.mmu.ac.uk/

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Aviation’s contribution to climate change

Contrails and clouds The impact of clouds on global climate change is one of the most uncertain areas of climate change science. It is thought that most types of clouds exert a cooling effect on the Earth’s surface as they screen out sunlight. However, the same may not be true for cirrus clouds - the high thin clouds that could be partly formed by aircraft contrails. That’s because cirrus clouds may allow sunlight through to the Earth and yet still trap infrared radiation emitted from the Earth. The science is further complicated by whether it is day or night which seems to have a significant effect on whether cirrus clouds have a warming or cooling effect. Scientists tend to believe that cirrus clouds have an overall warming effect. A special report by the IPCC in 1999 estimated that the global warming effect of contrails and other exhaust generated clouds is only about 1-3% as large as the global warming effect from all human produced greenhouse gases.36

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Aviation’s contribution to climate change is growing. The future climate change contribution of any industry depends on several unknown factors: the industry’s rate of growth; the extent to which technological improvements or environmental demand management reduce emissions; and the extent to which other industries reduce or increase their own emissions. Although we can’t be sure of aviation’s exact emissions in the future we do know that they are predicted to grow. The Department for Transport’s central case estimate is that aviation will contribute 21% of the UK’s CO2 emissions in 2050. This figure also assumes that the rest of the economy achieves a 60% cut in emissions.37 At a global level, the IPCC central case estimate is that aviation will account for 5% of the world’s total human contribution to climate change in 2050 (including aviation’s non-CO2 impacts), though their estimates range from 3.5% to 15%.38 It is often incorrectly said that aviation is the fastest growing source of global emissions. In fact, a quarter of all global greenhouse gas emissions come from power stations and this has both been the fastest growing source of emissions in recent years and is predicted to grow more than threefold by 2050.39

Airport sources of carbon dioxide emissions One of the highest estimates for aviation’s future emissions growth is from the Tyndall Centre for Climate Change in a report commissioned by Friends of the Earth.40 It predicts that aviation could account for all of the UK’s permitted emissions by 2050. This forecast is based on very high predictions of passenger numbers which we believe are unrealistic – 1.2 billion passenger journeys a year, which is nearly 2.5 times what the Government or other industry forecasters expect. Some of the Tyndall Centre’s forecasts are also based on the UK achieving larger total CO2 reductions than current policy is targeting. Although the precise future greenhouse gas emissions from aviation are uncertain, BAA’s starting point is simple. Aviation’s contribution is growing and we must take action now to curb emissions from flights.

There are several ways in which airports contribute to greenhouse gases which cause climate change: •

aircraft emissions on the ground



passengers and staff travelling to and from Heathrow by road or rail



vehicles on the airfield or vehicles making deliveries to the airport



energy used by airport buildings



waste from the airport which produces greenhouse gases through disposal



water usage

We are currently undertaking detailed work to understand the proportion of our emissions from each of these sources and the total non-flight carbon footprint of Heathrow. We have a good understanding of the direct carbon dioxide impacts of the airport, for example, our energy use in the terminals, but further work needs to be undertaken on more complex impacts such as passenger journeys to the airport.

What is the IPCC? Recognizing the problem of potential global climate change, the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP) established the Intergovernmental Panel on Climate Change (IPCC) in 1988. It is open to all members of the UN and WMO. The role of the IPCC is to assess on a comprehensive, objective, open and transparent basis the scientific, technical and socio-economic information relevant to understanding the scientific basis of risk of human-induced climate change, its potential impacts and options for adaptation and mitigation. The IPCC does not carry out research nor does it monitor climate related data. It bases its assessment on thousands of peer reviewed and published scientific or technical literature. There are many voices claiming to be the authority on climate change. BAA relies primarily on the work of the IPCC to assess aviation’s current and future contribution to climate change. The IPCC’s fourth assessment report is based on the work of over 2,500 scientific expert reviewers, and more than 800 contributing authors from over 130 countries. It took six years to produce and comprises four volumes of work. It is the most authoritative source of advice on global climate change available to policymakers.

Heathrow and climate change 15

Heathrow and climate change

Addressing emissions from flights Over the last thirty years there has been a 50% improvement in aircraft fuel efficiency per passenger.41 Burning less fuel is the simplest way to curb aviation’s carbon dioxide emissions.

Technological advances Fuel efficiency is currently improving by about 1-2% a year.42 However, aviation is predicted to grow more quickly than this, so technological improvements by themselves won’t be enough to solve the problem. Aircraft manufacturers are making big strides with the next generation of planes that will fly from Heathrow. The Airbus A380 is 12% more fuel efficient per passenger than an existing jumbo jet.43 When the Boeing 787 enters service in 2008 it will cut CO2 emissions by 20% compared to the existing 767. And the latest version of the Boeing 747 will emit 15% less carbon dioxide than its predecessor.44 These planes will have a big part to play at Heathrow. For example, airlines that fly from Heathrow have already ordered over 280 Boeing 787s. Renewable biofuels are a possible aircraft fuel of the future and may be a way of reducing greenhouse gases. Biofuels are plants that absorb carbon dioxide

while they are grown and release it again when they are burnt for energy. Unlike burning fossil fuels, this doesn’t add to the overall level of carbon dioxide in the atmosphere. Existing biofuels are generally unsuitable for aircraft because they freeze at high altitudes, but new research suggests that using algae and other new types of biofuels in planes may be possible. Boeing will begin testing biofuel technology with Virgin Atlantic in 747 jets in 2008. Boeing is also experimenting with aircraft powered by fuel cells. Fuel cells use a chemical reaction to generate electricity from hydrogen and oxygen and the only by-products of the process are heat and water. It is not currently possible to provide enough power to propel a large plane using fuel cells alone. However, Boeing does plan to introduce fuel cells on larger aircraft as a source of auxiliary power for lighting, heating and in-flight entertainment.

ACARE The Advisory Council for Aerospace Research in Europe (ACARE) was established in 2001 with the purpose of driving longterm research into aerospace design. Its membership includes European member states, the European Commission, aircraft manufacturers, airports, airlines, research establishments and academia. ACARE set specific and ambitious targets for aircraft environmental performance in 2020 compared to equivalent new aircraft in 2000. These are: • 50% reduction in CO2 emissions and fuel consumption (per passenger km) • 80% reduction in NOx emissions (per passenger km) • 50% reduction in perceived external noise Progress towards these targets and detail of the innovations in aircraft design are available at www.sustainableaviation.co.uk

Planes are getting greener Litres of fuel per 100 passenger kilometre Source: Boeing

8.0 2.4

16 Heathrow and climate change

3.0

787

767

727

(int 2008)

(int 1982)

(int 1963)

Heathrow and climate change 17

Addressing emissions from flights

Airspace management

Infrastructure constraints

Air traffic control is still largely organised on national boundaries. This means that aircraft frequently fly a ‘dog-leg’ route rather than flying in a straight line. The additional fuel used to fly these circuitous routes provides no benefit to anyone – increasing journey times for passengers and the amount of carbon dioxide produced during a flight. Around six million tonnes of CO2 have already been saved by shortening existing routes and BAA is pushing for a unified system of air traffic management within the EU to significantly reduce emissions within Europe. IATA estimates that a single air traffic management system for the EU could cut aviation CO2 emissions by 12%.45

One way of reducing the demand for air travel is to prevent any more airport infrastructure from being built. If there are no more runways then there is a limit to how many more flights are possible. In fact, airport infrastructure constraints already form part of UK aviation policy. In its 2003 Air Transport White Paper the Government allowed for some additional airport capacity, but did not allow for all of the unconstrained capacity that was forecast. For example, even with a third runway, Heathrow would only be meeting some 70% of its unconstrained growth forecast in 2030.46 However, other countries are not adopting the same policy. Over the next five years China plans to invest in 71 airport expansion projects, including building 49 new airports.47 Today, Heathrow is full, operating at 99% of its permitted runway capacity, and a failure to allow for any new capacity at all could have serious economic consequences, both at a regional and national level. The international connectivity provided by Heathrow supports billions of pounds of British exports, thousands of UK jobs, and means that hundreds of businesses choose to locate in the UK, who would otherwise locate overseas. (For a detailed examination of Heathrow’s economic importance see our publication Economic Benefits of Heathrow available at www.baa.com/publications)

18 Heathrow and climate change

Worse still, future growth in air travel – along with the businesses that are based in West London and the Thames Valley – could migrate elsewhere. If there are no available landing slots at Heathrow then airlines will simply fly from other European hubs instead. That does nothing to combat climate change but damages the UK economy and London’s status as Europe’s premier financial and commercial centre. The Stern Review on the Economics of Climate Change stated that capacity limits at airports are a poor way of dealing with the challenge of climate change, noting that they are “a form of rationing which is an inefficient way of regulating demand”. Capacity constraints lead to more congestion and delays, causing aircraft to be held for longer in stacks. This needlessly pollutes the atmosphere while aircraft wait for a landing slot.

The Stern Review stated that capacity limits at airports is an inefficient way of regulating demand

Taxes and charges The main tax on flying at present is Air Passenger Duty. This is currently levied at £10 for short haul flights and £40 for long-haul flights and raises almost £2 billion for the Treasury each year. There are two main problems with Air Passenger Duty as a way of tackling climate change: •

it is a tax on passengers not emissions. Airlines are not incentivised to directly reduce emissions.



the money that is raised doesn’t go towards addressing environmental impacts or incentivising clean technology.

Putting tax on fuel is frequently suggested as a way of combating carbon dioxide emissions from aviation. The main problem with this idea is that it only applies to fuel purchased in the UK. On many short-haul flights the airline could simply choose to fill up their fuel tanks abroad – avoiding the tax and actually increasing their CO2 emissions by flying heavier fully-fuelled aircraft. There are also international agreements that prevent states from levying tax on international aviation fuel meaning that in practice this could only be applied to domestic flights. Like Air Passenger Duty the money raised would not go towards addressing environmental impacts.

Heathrow and climate change 19

Addressing emissions from flights

Emissions Trading BAA has been at the forefront of lobbying for aviation to be included in the EU Emissions Trading Scheme. This would force airlines to cut their own emissions or pay for others to do so. How does emissions trading work? •

Emissions trading places a cap on the total amount of emissions allowed across industry as a whole.



Permits are allocated to companies setting the amount that each can pollute. The total number of permits is finite and no pollution is allowed above the cap.



Companies can trade their permits - selling permits if they can cut their emissions below their allocation, and buying them if they want to pollute above their allocation



Permits are sold at a market price. If everyone wanted to pollute above their cap, then permits would become scarce and the price would go up.

The European Commission is currently proposing that all flights arriving or departing from an airport in the EU would be covered by this scheme by 2012, and all flights within the EU would be covered by 2011. For the trading periods up until 2022, emissions will be capped at 2005 levels - equivalent to a 45% cut in emissions by 2020 compared to business as usual, according to the Commission’s assessment study.48

20 Heathrow and climate change

Five key advantages of emissions trading 1

The environmental result is clear from the start.

2

The amount of CO2 that will be emitted into the atmosphere is set at the start. This compares favourably to a tax on fuel where governments need to estimate the amount of tax that would be necessary to reduce emissions by a certain amount. If the level of tax is set too low, then more CO2 will be emitted into the atmosphere than intended. With a cap and trade system, governments only need to decide how great a reduction of CO2 is necessary to combat climate change. The market sets the price of CO2 permits to meet this target.

CO2 reductions are made in the most efficient way possible. Some activities produce CO2 but have little or no economic benefit – for example, heat escaping from buildings. Some activities have strong economic benefits and no existing alternative technology – for example, aviation. Emissions trading achieves real cuts in CO2 at the least possible cost to the economy.

3

Money raised goes directly towards reducing emissions. Unlike a tax, which may go straight to the Treasury, the money raised through selling CO2 permits goes directly to those who have reduced their emissions. This rewards those who cut their carbon dioxide emissions, and incentivises the development of new lowcarbon technology. Unlike Air Passenger Duty, where the cost is related to the number of passengers, the cost is related directly to the emissions that a flight produces. That means it is more expensive for inefficient older aircraft.

4

The quantity of emissions is important, not their source. It does not make any difference whether CO2 emissions are produced from road traffic or power stations – they have the same impact on our climate. Rather than concentrating on one industry at the expense of action elsewhere, emissions trading simply concentrates on reducing the overall amount of carbon dioxide put into the atmosphere.

5

It works internationally. The UK produces about 2% of the world’s greenhouse gases. Unilateral action will be insufficient to halt climate change. Emissions trading is already established across Europe, but persuading the United States to take action is key to world-wide action on climate change. The US has already successfully used emissions trading to combat sulphur dioxide emissions and emissions trading is likely to be more politically acceptable than a tax.

Cutting carbon Carbon dioxide savings in kilograms Source: Energy Savings Trust

Cancelling a return flight to Barcelona (per person)

Turning the thermostat down 1˚ (per year)

300 300

Insulating a loft

1500

Installing 10 energy saving lightbulbs

380

Heathrow and climate change 21

Heathrow and climate change

How we are cutting emissions from airport buildings

Terminal 5 Energy Centre

Heating, cooling and powering airport terminals all require energy that contributes to carbon dioxide emissions. BAA is on target to reduce its own carbon dioxide emissions from energy by 15% below 1990 levels by 2010. This is in excess of the UK’s targets under the Kyoto treaty and despite a predicted growth in passenger numbers of 70% during this period. We have recently set a new target of further reducing our carbon dioxide emissions from energy use in buildings by 30% by 2020.

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Heathrow and climate change 23

How we are cutting emissions from airport buildings

We are achieving CO2 reductions from Heathrow’s buildings in several ways. Replacing inefficient terminals with modern buildings BAA is replacing older buildings with modern terminals that require less energy. Many of our terminals were designed in the 1950’s and 1960’s and are not energy efficient by modern standards. We are replacing Terminals 1 and 2 with a new passenger terminal called Heathrow East. This will deliver a world-class facility for our passengers, provide more space for security, and also cut carbon dioxide emissions by around 40% compared to the buildings it replaces.

Using on-site combined, cooling heat and power (CCHP) Solar control glass and solar shading devices let natural light into the building while minimising the amount of heat gain from sunlight. This reduces the need for artificial lighting and air conditioning. In winter, hot air generated by people and machinery will be collected and used to warm incoming external air for the air conditioning system. Chiller, boiler and IT systems will all be high-efficiency, reducing power consumption compared to existing buildings.

Conventional power plants only convert about 35% of the energy in the fuel that they burn into electricity. The heat which power stations produce during electricity generation is a waste product emitted through cooling towers. Energy is also lost as electricity is transmitted through the grid. With CCHP, electricity is generated on site and the waste heat is used to heat the building during the winter. In summer, absorption chillers turn the waste heat into cold water to cool the building. This hugely improves energy efficiency. CCHP plants typically convert over 80% of the energy in the fuel that they burn into electricity, heat or cooling. This means less fuel is needed to produce the same results. 85% of Terminal 5’s heat needs are provided by combined, heat and power. At Heathrow East, cooling will also be provided through CCHP, which saves on electricity that would be used in traditional air conditioning units and also removes the need for refrigerants, which are powerful greenhouse gases.

Terminal 5 interchange plaza

24 Heathrow and climate change

Optimising the performance of our existing buildings and processes Energy efficiency is a key objective for how we manage our activities. We set and report on annual CO2 emissions reduction targets for the airport. Everyone has a role to play in minimising avoidable energy waste. We run a series of hearts and minds campaigns across the airport, focussed on staff and our partners taking accountability for turning non-essential power off. This work is complemented by an annual programme of projects to improve the performance of our buildings systems on an ongoing basis. The aim is to regularly service our assets in a manner which promotes efficient use of energy.

Installing intelligent building management systems BAA is installing intelligent building management systems in its terminals. These automatically turn off machinery that is not in use and dim lights in unoccupied areas or where natural light is bright enough by itself. They will also control temperature and target and constantly monitor energy consumption so that efficient performance can be measured and maintained.

We are also focussed on procuring the best options when replacing our assets and equipment. Recent investment projects for energy efficiency on the airport have included automatic lighting controls and measures to improve the efficiency of our chillers. Future opportunities that have been identified include investing in more efficient motors and drive systems and high efficiency lighting systems.

Heathrow East departures

Heathrow and climate change 25

How we are cutting emissions from airport buildings

Investing in renewables

Reducing water usage

Heathrow East will be one of the first major developments to use renewable biomass gasification. This process generates a renewable gas from locally sourced waste wood and sustainable forests that can then be used to fuel the CCHP plant. Adopting this technology supports one of the key priorities from the Mayor’s Climate Change Action Plan49, by seeking to demonstrate the potential for renewable energy from biomass. BAA will share the results of the technology with the Mayor’s environment team and the London Climate Change Agency to assess its potential use in future developments.

In future, the effects of global warming will make water more scarce. Water usage also contributes to climate change through the energy that is required to pump, process and treat drinking water. Heathrow is taking steps to reduce its water usage and the amount of water that it takes from the mains supply. Water for non-potable use at Terminal 5 is sourced from a rainwater harvesting scheme and groundwater boreholes, reducing the demand on the public water supply by 70%. The rainwater harvesting system reuses 85% of all the rainwater that falls on the Terminal 5 site.

All toilets in Terminal 5 have the capability to be low-flush toilets, using as little as four litres of water when flushed. Grey water will be used to flush toilets in Heathrow East. All taps and showers are fitted with water saving devices such as on-and-off sensors and aerated heads.

Heathrow East will also have photovoltaic solar panels on its roof to turn the sun’s energy into electricity.

Heathrow will be one of the first sites in Britain to trial generating zero-carbon energy from waste heat.

Recycling waste and turning waste into energy

Trialling innovative zero-carbon electricity

Waste that is sent to landfill produces methane gas, and all of the energy in the waste is lost. BAA has a target of recycling or composting 40% of its waste by 2010 and 70% of its waste by 2020. We are also aiming to send zero waste to landfill by 2020.

Heathrow will be one of the first sites in Britain to trial generating zero-carbon energy from waste heat. The new technology will convert waste heat from Heathrow’s existing boilers into zero-carbon electricity. The electricity generated will be used to power Heathrow’s terminals without burning more fossil fuels. If successful, the trial could be extended across the airport.

From next year, waste that currently goes to landfill will go to a waste incineration plant and some of the energy in the waste will be recovered. Heathrow is also investigating the possibility of using the energy from waste that cannot by recycled to power its terminals. We are looking at more innovative techniques for turning our waste into energy, potentially on the airport site. Anaerobic digestion breaks down waste to produce a biogas that can then be used to power electricity generators and provide heat. Waste gasification is an alternative way of turning waste into a gas to fuel a combined cooling, heat and power plant. We are currently undertaking a study to assess the commercial and operational viability of these options for Heathrow.

Terminal 5 Energy Centre

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Heathrow and climate change 27

Heathrow and climate change

How we are reducing emissions from road traffic and airport vehicles

Passengers and staff driving to and around Heathrow contribute to carbon dioxide emissions and climate change. Overall road transport is a much bigger contributor to UK carbon dioxide emissions than aviation – making up about 24% of all UK CO2 emissions.50 On the M4 at Heathrow almost 20% of vehicles are travelling to or from the airport. BAA is working hard to increase the proportion of passengers and staff who travel to the airport by public transport. We are also promoting schemes to cut the number of deliveries to the airport and improve the environmental performance of vehicles on the airfield.

No. 77 low emission bus Slough – Heathrow

28 Heathrow and climate change

Heathrow and climate change 29

Reducing emissions from road traffic and airport vehicles

Investing in rail Although trains and buses still produce carbon dioxide emissions they are much more energy efficient per passenger than cars. BAA has invested £750 million in building and operating the Heathrow Express service. The non-stop rail-air link between London Paddington and Heathrow Airport operates 150 services per day carrying on average 15,000 passengers. This direct link to Paddington Station is specifically designed for business passengers who are amongst those most likely to drive to the airport. It was recently rated as the best rail service in the UK by passengers, with an overall satisfaction rating at 94% - the highest ever rating achieved by a rail service in the UK.51 Heathrow Express is removing around 3,000 cars a day from London’s roads helping to reduce carbon dioxide emissions and improve local air quality. The service is currently being extended so that it connects to Terminal 5. This new route will operate from 2008.

30 Heathrow and climate change

In 2005 BAA also introduced Heathrow Connect, a stopping service to Paddington, designed for those passengers or staff who live in West London. This £30 million investment was designed to take more cars off the road and follows the route that the westerly section of Crossrail will cover. Staff are able to purchase half-price tickets on both the Heathrow Express and Heathrow Connect services. BAA has also invested in the London Underground by extending the existing Piccadilly Line service to Terminal 5 and renovating our existing London Underground stations. At the moment many passengers to the west of Heathrow have to travel into London in order to access the airport by rail. At Terminal 5 we have built a sixplatform rail station with two platforms safeguarded for a westerly rail link. BAA has agreed to invest over £5 million to seek permission to build a rail link to the west of the airport called Airtrack. Airtrack would offer direct or one-stop rail access to Heathrow for passengers from Reading, Guildford, Woking or south-west London.

Improving bus services

Encouraging staff to car share

The bus and coach station at Heathrow is the second busiest bus station in the UK. Frequent services connect the airport with over 500 local and national destinations. Three direct luxury coaches link Heathrow to the national rail network by providing services to Watford, Reading and Woking. In addition the 285 bus links Heathrow to Feltham station which is on the main line from Waterloo and Clapham Junction. BAA invests directly in some local bus services providing funding for cleaner buses and working with bus companies to introduce new services. We also subsidise local bus routes around the airport so that all passengers, staff, or local residents can travel for free.

70,000 people work at Heathrow Airport. It is the biggest singlesite employer in the UK. Cutting the number of road journeys by staff is a key priority for us. As well as offering discounts on rail services we also encourage staff to car share. BAA operates the largest car sharing scheme in Europe. More than 6,000 people from over 300 airport companies are members of the scheme and of these around two-thirds car share three times a week. To encourage staff to car share we provide priority parking bays for members of the scheme; offer a free taxi ride to get home if an emergency occurs; and offer discounts on costs such as breakdown cover and tyre replacement. Similar benefits and discounts are in place for staff who cycle to work. We estimate that since the Heathrow car share scheme started in 2001 it has prevented 53 million kilometres of unnecessary car journeys, cut fuel consumption by nearly 5 million litres, and saved 11,000 tonnes of carbon dioxide from being emitted into the atmosphere.

Investing in innovative transport schemes

Cutting the number of delivery vehicles at Heathrow

BAA will host the first commercial trial of an innovative new public transport technology after Terminal 5 opens in 2008. The Personal Rapid Transit system (PRT) will replace traditional buses and coaches by allowing passengers to travel between Terminal 5’s business car park and main terminal building in individual driverless pods. The pods are powered by electricity, generate zero local emissions, and are more energy efficient than existing vehicles.

Heathrow is like a small city, hosting thousands of people and hundreds of companies. Supplying Heathrow is a major logistical exercise that, if not properly managed, would cause heavy congestion and be a significant contributor to greenhouse gases. In 2001, BAA opened the Heathrow Consolidation Centre to cut the number of vehicle deliveries. Rather than each company making their own delivery to the airport, deliveries are consolidated offairport so that multiple deliveries can be made with just one vehicle. This has successfully cut the number of retail deliveries at Heathrow from 49,000 to just 8,300 a year. This award-winning innovation has become a model of best practice across the logistics industry. BAA operates the Heathrow Consolidation Centre in partnership with logistics experts DHL. As part of its future investment strategy for Heathrow, DHL has committed to further innovation, including the initial deployment of a £75,000, 9 tonne electric vehicle, the first electric retail delivery vehicle operating within an airport environment.

Heathrow and climate change 31

Heathrow and climate change

How we are curbing emissions on the airfield Aircraft on the ground and vehicles on the airfield are also important contributors to carbon dioxide. BAA has a number of initiatives in place to address these emissions.

Pre-conditioned Air and Fixed Electrical Ground Power Aircraft traditionally run one of their engines while they are parked on the ground to power the plane. This power is used to run the air conditioning system and provide electricity to the aircraft’s systems and lighting. But running aircraft engines on the ground is an inefficient way of producing energy and is detrimental to local air quality. On all new aircraft parking stands BAA is providing airlines with Pre-conditioned Air (PCA) and Fixed Electrical Ground Power (FEGP). These systems provide air conditioning and electricity from the terminal buildings, meaning that aircraft can turn off their engines on the ground. Further work is being carried out to quantify the extent of carbon emission reductions. On-airfield airline vehicles Many of the vehicles on the airfield are operated by airlines. British Airways plans to spend more than £25m on a new fleet of 550 airport vehicles as part of its move to Heathrow Airport’s new Terminal 5 next March. The new vehicles will help the airline to reduce its emissions at Heathrow and improve

32 Heathrow and climate change

Heathrow Clean Vehicles Programme punctuality. The number of ground vehicles required by British Airways will fall by just under 40% as the result of the move to Terminal 5, from 1,300 this year to fewer than 800 in 2010. As part of the bus replacement programme and the operational changes within Terminal 5, the number of buses used by British Airways at Heathrow will also reduce by more than 50 percent by 2010. Redesigning taxiways Heathrow has around 1,300 departing or arriving flights every day. Because it is such a busy airport there are a large number of aircraft movements on the airfield at any one time. The current design of the airfield is still based on its World War II layout, and there are a number of cul-de-sacs which lead to delays and congestion. BAA is investing in redesigning taxiways and piers to reduce the amount of congestion on the airfield. If aircraft can taxi between the runways and the terminal buildings more easily, it will cut the amount of time that they have to run their engines on the ground and reduce emissions.

BAA is promoting the use of alternative fuels at Heathrow to reduce CO2 and NOx emissions by offering a fund of £100,000 to help convert or replace inefficient vehicles. Our Heathrow Clean Vehicles Programme helps other companies on, or around, the airport achieve a more fuel efficient and less polluting vehicle fleet. It provides an independent assessment of performance against ten steps of environmentally responsible transport management. These steps range from training and awareness, through clean fuels and vehicles, to a commitment to maintaining a momentum of continuous improvement. Companies who sign up to the programme are provided with an initial assessment and an action plan focusing on cost-effective measures to improve the environmental performance of their fleets. The programme has been highly commended for its environmental leadership. BAA is a member of the scheme and we have so far reached Gold level (this means we have achieved 6 out of the ten steps).

Heathrow and climate change 33

Heathrow and climate change

How we are setting new standards for low-carbon construction BAA is the largest private-sector construction contractor in the UK. At Heathrow alone, we are investing £6.2 billion over the next ten years to rebuild and refurbish our existing terminals so that we can provide world-class facilities for our passengers. Using traditional materials and construction techniques could have a significant environmental impact. Because of this, BAA has sought to lead the UK construction industry in the use of sustainable construction materials.

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HCFCs and HFCs HCFCs and HFCs, which are powerful greenhouse gases, have been virtually eliminated from the Terminal 5 project. Timber Only timber that has been approved by the Forestry Stewardship Council (FSC) has been installed by BAA to ensure that it has been sourced from a sustainable supply. Aggregates Large amounts of aggregates (coarse material used in construction such as sand, gravel, or crushed stone) were needed during construction at Terminal 5. To minimise the energy needed to mine primary materials we have tried to use recycled and secondary aggregates where possible. Over 300,000 tonnes of aggregate were processed and reused on site from demolition materials and waste concrete. An additional 80,000 tonnes of recycled and secondary aggregate

was brought into the project from other sites to be reused. Crushed green glass from domestic household recycling banks was used as a base for Terminal 5 site roads. Pulverised fuel ash, a waste product from power stations, made up 30% of the concrete mixture that was used on site. Excavated materials The Terminal 5 site is the same size as Hyde Park and 6.5 million cubic metres of earth have been moved during the project. To avoid sending any excavated material to landfill, this earth has been used to backfill excavations and landscape the terminal. Waste Waste materials have been segregated on site and over 85% of the waste from the project has been recycled. We have set a further target that 90% of the demolition waste from the Heathrow East project will be recycled.

Heathrow and climate change 35

Heathrow and climate change

Heathrow’s growth and climate change Heathrow is vital to the health of the UK economy and the country’s only hub airport. In 2003 the Government said that it supported a third runway at Heathrow but only if this could be operated within strict environmental limits.

36 Heathrow and climate change

There is a strong case for allowing further growth at Heathrow. The airport supports thousands of jobs, provides the vital links between the UK and the global economy, and is an absolutely essential factor in convincing companies to locate in Britain. But today Heathrow is full – already at 98.5% of its permitted runway capacity – and vulnerable to foreign competition. If Heathrow isn’t allowed to grow then foreign hubs such as Frankfurt, Amsterdam and Paris will grow instead. That does nothing to combat climate change but would severely damage the UK’s global competitiveness and UK jobs.

Heathrow also has an important social role. London is one of the world’s most cosmopolitan, and culturally and ethnically diverse cities. Nearly one third of London’s population was born outside the UK, with the largest single migrant groups from India, Ireland, Jamaica, Bangladesh, Nigeria, Pakistan and Kenya.52 Most of the UK’s long-haul flights depart from Heathrow and one third of the airport’s passengers are visiting friends and relatives abroad. Although aviation only contributes a relatively small amount of the UK’s CO2 emissions today, its contribution is growing. A third runway at Heathrow would increase the total amount of CO2 emissions from the airport. That’s why BAA supports an approach whereby aviation is treated like other industries and included in the EU Emissions Trading Scheme. This would place a cap on the total amount of CO2 emissions across the economy and mean that airlines would be forced to cut their own emissions or pay for others to do so.

BAA believes that this is the most effective way of: •

managing aviation’s carbon dioxide emissions;



making the overall CO2 reductions necessary to combat climate change; and



maintaining the economic and social benefits that aviation undoubtedly creates.

The Stern Report on climate change also said that constraining airport capacity was an inefficient way of regulating demand, but supported schemes such as emissions trading as an effective way of reducing global warming impacts. Outside of the climate change debate, Heathrow’s expansion will only go ahead if local environmental impacts can be mitigated. That means no more noise than in 2002, all air quality pollution safely within EU limits, and improvements in public transport to help manage congestion.

Heathrow and climate change 37

Heathrow’s growth and climate change

Air transport has real social and economic value. Other CO2 producing activities, such as letting heat escape from buildings, produce no benefit at all.

Is Heathrow’s growth consistent with tough action on climate change? Carbon dioxide emissions have the same impact on our planet no matter where they are produced or what activity produces them. What is important for preventing dangerous climate change is the overall quantity of emissions, not their source. Although they have the same environmental impact, not all CO2 emissions are the same. Some activities which produce emissions have major social and economic benefits. Power generation, for example, improves people’s standards of living and powers factories and offices. Letting heat escape from buildings, on the other hand, produces no benefit at all. Within an overall carbon dioxide cap, society may decide to take more stringent measures to reduce emissions that produce no benefit in order to permit more emissions from activities that produce important benefits. By placing an economic value on carbon dioxide emissions, cap and trading schemes aim to reduce those emissions that have no value first - cutting the economy’s overall emissions in the most efficient way possible. The environmental result is the same, but the economy can also continue to grow.

Air transport has real social and economic value. In a global economy, access to international markets is crucial for business success. This means that aviation might continue to grow within an overall emissions cap. This isn’t aviation passing the buck – the overall quantity of emission stays capped, and the cost to airlines of purchasing permits to pollute from industries that have reduced their own CO2 emissions will be reflected in the cost of flying. What it does mean is that we reduce the total amount of carbon dioxide in the atmosphere without losing the benefits of aviation.

The UK’s C02 emissions (%) by industry53

Industry 26%

Household 25%

Road transport 24%

Other 19%

Aviation 6% 38 Heathrow and climate change

Heathrow and climate change 39

Heathrow and climate change

Next steps We take our climate change responsibilities seriously. Although aviation contributes less than 2% of global greenhouse gas emissions it should enjoy no special treatment and must address its climate change impacts.

We believe that we are working hard to improve our own environmental performance but we acknowledge that there is always more that we can do.



Our strategy for managing the climate impact of our airports has the following components: Aviation in the air •



40 Heathrow and climate change

Aviation on the ground

to lobby for aviation to be included in the EU Emissions Trading Scheme as soon as possible. The current system proposed by the EU could lead to a 45% reduction in emissions by 2020 compared to business as usual. to work with the industry to support technological development, and improve airspace management so that planes fly more direct routes.

to reduce our existing emissions, especially from energy use in our terminals. This will include major investment in energy-efficient technology and behavioural change to achieve more efficient use of our operations. We will also source more renewable energy and fit low or zero carbon on-site generation of power where economically viable.



to increase the proportion of staff and passengers who use public transport to access the airport by supporting schemes such as Airtrack.



to help airlines and other airport companies to reduce aircraft and vehicle emissions on the airfield. This will include supplying air conditioning from terminals so that aircraft can turn off their engines and redesigning taxiways so that aircraft can travel more directly to stands.

Our energy strategy is supported by the Carbon Trust, through a Partnership Agreement. The Carbon Trust is a governmentbacked body established to provide UK businesses and industry with advice on reducing carbon emissions by using lowcarbon technologies and becoming more energy efficient. Each year we report on our progress against a series of corporate responsibility targets. Our current report details all of our environmental policies and is available at www.heathrowairport.com/ corporateresponsibility. Here you can find further information about climate change as well as our policies on air quality; noise; surface transport; waste; biodiversity; water quality; our community; our economic role; our people; health and safety; and security.

Heathrow and climate change 41

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1

Intergovernmental Panel on Climate Change, Fourth Assessment Report, 2007

32

Intergovernmental Panel on Climate Change, Special Report on Aviation and the Global Atmosphere (1999)

2

Stern Review on the Economics of Climate Change, 2006

33

Sausen et al (2005) quoted in The Stern Review on the Economics of Climate Change, 2006

3

IPCC - Climate Change 2007: The Physical Science Basis. Contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change

34

Hansard, 2 May 2007, Column 1671W

35

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4

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36

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37

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38

Intergovernmental Panel on Climate Change, Special Report on Aviation and the Global Atmosphere (1999)

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39

The Stern Review on the Economics of Climate Change, 2006

8

Stern Review on the Economics of Climate Change, 2006

40

9

Intergovernmental Panel on Climate Change, Special Report on Aviation and the Global Atmosphere (1999)

The Tyndall Centre for Climate Change Research, Growth Scenarios for EU and UK Aviation: Contradictions with Climate Policy, 2005

10

DfT, Aviation and Global Warming (2004), Central case. This figure assumes the rest of the economy achieves a 60% cut in emissions.

41

IATA

42

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11

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43

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12

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44

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45

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47

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16

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48

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17

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49

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18

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50

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51

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20

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52

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22

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24

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25

IPCC, Climate Change 2001: The Scientific Basis. Contribution of Working Group I to the Third Assessment Report of the Intergovernmental Panel on Climate Change, 2001

26

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31

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Heathrow and climate change 43