CX Climate Change Strategy
Climate Leadership Programme – Japan
10 December 2010

Janice Lao
Environmental Manager
janice_lao@cathaypacific.com

Aviation: a small but growing contributor to climate change

Currently 2%, rising to 3% by 2050

Source: all from IPCC Working Group III Report, May 2007 except (#) Stern Report Annex 7

CX Emissions in a Global Context

CX Proportion of Global
Aviation Emissions

Global CO2 Emissions98%
2%

global aviation emissions

other emissions

98%

CX share:
0.05% ofglobal emissions(across all sectors)

2%

CX CO2 emissions

other aviation emissions

Fact is…

There aren't many industries operating
20% more efficiently now than they
were just 10 years ago - or confidently
predict a further 25% improvement by2020
Source: Enviro.Aero website

CX CO2 emissions

Fuel efficiency improvement
since 1998:••

19.3% in grammes/RTK
8.4% in grammes/ATK

Year-on-year increases
since 1998:• Fuel consumption 5.4%
• CO2 emissions
5.4%• RTK 7.3%
• ATK 6.2%
• Pax 25%

IATA Announces“Aviation’s Commitment to Climate Change”•Fuel efficiency improvement of 1.5% pa from 2010 – 2020
•Carbon Neutral Growth 2020 onwards•Trajectory to 50% of 2005 by 2050

Cathay Pacific Approach
Mirrors the industry response:
IATA Four Pillar Strategy
1 Invest in new technology
2 Effective Operations
3 Build and use efficient Infrastructure
4 Support the development of positive
economic instruments

Pillar 1: Technological Progress•

Fleet Modernisation•

Re-engineer existing fleet

B777-300ER
28% more efficient on the Hong KongToronto route than the 747-400

Biofuels offer long term potential
Suitability

Sustainability

Industrialization

 energy density
 fuel characteristics

 environmental
 social mass production
 distribution

CX a member of the Sustainable Fuels Users Group(SAFUG)

Pillar 2 Operational Efficiency• Optimizing flight routes and speeds• Aircraft maintenance – core washing, weight management• Fuel monitoring (now essential for EU ETS compliance)• Reduced taxiing time
Photo courtesy: Cuthbert Lo, FOP• Single engine taxi
• Continuous descent (CDAs)

Pillar 3 – Improved Infrastructure• Route improvements, reduced holds• Collaborative decision making• Single European Sky (EU)Cathay Pacific a founder of the Aviation
Global Deal GroupPillar 4 - Economic Instruments•

Support for appropriate economic measures•

Carbon trading•

Support cap and trade approach•

We are calling for a global approach to addressing aviation emissions•

Carbon offsets– CX Flygreener

Carbon Offsets: FLY greener•

FLY greener Carbon Offset Scheme (since Dec 2007)• First Asian airline to offer carbon offset scheme2009 offset

CarbonCostPassengers

3,263 tCO2

USD$245,088

CX & KA staff travel

8,097 tCO2

USD$504,000•

Offset projects tend to be based in Mainland China•

New projects highlight social/community benefits, as well as
environmental

www.cathaypacific.com/flygreener or www.dragonair.com/flygreener

Carbon Offset Projects
2009 - Initiatives in Mainland China offering 20,000t of offsets:– a natural gas project in Beijing;– a micro hydro power plant project in Guizhou; and– a group of 20 wind turbines in Heilongjiang.
2010 – New portfolio in SW China, Shandong and PRD
Wind farm project in Heilongjiang

Courtesy of JP Morgan ClimateCare

Run-of-river Lankou hydropower project

Courtesy of David McKintyre

Tackling Emissions
Not just in the Air, but also on the Ground• renewable energy• waste management• sustainable sourcing• water management• ground vehicles• local air quality•ISO 14001•GHG monitoringCX Partnership – Climate Change Business ForumEndThank you