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American Airlines Leads The Charge With Innovative Carbon Removal Technologies

Friday, September 13, 2024

American Airlines
aviation sustainability

Discover how American Airlines is leading the way in aviation sustainability by pioneering carbon offsets and removal technologies to tackle residual emissions.

The aviation industry faces significant challenges in reducing its carbon footprint due to the slow development of decarbonization technologies. To meet the ambitious goals of the Paris Agreement, including reaching net-zero by 2050, the aviation sector must look to voluntary carbon markets as a critical tool in addressing residual emissions. These markets are essential for offering carbon offsets and removals, which are necessary to mitigate the environmental impact of aviation, especially given the current limitations in scaling low-carbon technologies.

Why Aviation Relies on Carbon Offsets and Removals

Aviation is one of the hardest sectors to decarbonize due to the heavy reliance on fossil fuels and the technological hurdles associated with alternative fuels. While there is significant progress in developing sustainable aviation fuel (SAF) and electric aircraft, these solutions are not yet scalable or cost-effective enough to achieve the deep emissions cuts required in the short term. Therefore, carbon offsets and removals are crucial for neutralizing aviation’s residual emissions.

Carbon offsets allow companies to compensate for their emissions by investing in projects that reduce or remove carbon from the atmosphere. These projects range from reforestation and forest conservation to renewable energy and carbon capture technologies. The key to the success of these projects lies in the voluntary carbon markets, where offsets are traded. A well-functioning market, coupled with strong verification standards, ensures that the projects provide real and lasting environmental benefits.

American Airlines: Pioneering Carbon Removal Solutions

American Airlines has made significant strides in reducing emissions and contributing to the voluntary carbon market. While American has not yet purchased carbon offsets as part of its net-zero strategy, it recognizes that offsets and removals will play an important role in future emission reduction efforts.

One of American’s most innovative moves is its partnership with Graphyte, a carbon removal startup backed by Breakthrough Energy Ventures. Graphyte’s groundbreaking Carbon Casting process permanently removes CO2 from the atmosphere by utilizing biomass, such as timber and farming residues, and converting it into stable carbon blocks that are stored underground. This process is not only energy-efficient but also cost-effective, making it a promising solution for large-scale carbon removal.

In early 2024, Graphyte launched the world’s largest carbon removal facility in Arkansas. American became its inaugural customer, purchasing 10,000 tons of permanent carbon removal to be delivered in 2025. This partnership is a testament to the airline’s commitment to accelerating low-cost, permanent CO2 removal solutions, which are essential for achieving net-zero in hard-to-abate sectors like aviation.

The Challenges Facing Voluntary Carbon Markets

Despite the promising developments, voluntary carbon markets face several challenges. The supply of high-quality, verifiable carbon offsets is still limited, making it difficult for companies to confidently invest in these markets. Ensuring that carbon removal projects deliver permanent CO2 reductions is another major concern. Many projects, such as reforestation, are vulnerable to natural events like wildfires, which can release the stored carbon back into the atmosphere.

Moreover, the cost of carbon removals remains high, especially for technologies like direct air capture, which require significant energy input. There is also the issue of additionality, which means that the carbon reduction or removal project should only exist because of the funding from carbon markets. Ensuring additionality is critical to maintaining the integrity of the market.

Public Policies and Financing Models to Support Carbon Markets

To scale the voluntary carbon markets, collaboration between governments, businesses, and market participants is essential. Clear standards and verification processes must be established to promote market integrity and ensure that all projects deliver the promised environmental benefits. Public policies that incentivize participation in these markets are also crucial for their success.

New financing models are required to mobilize the capital needed to invest in carbon removal technologies and projects. These models could include public-private partnerships, green bonds, and other innovative financial instruments that lower the risk for investors and make participation in the voluntary carbon markets more accessible to companies across sectors.

Mitigating International Aviation’s Climate Impact through CORSIA

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is an international initiative aimed at controlling emissions from the aviation industry. Endorsed by American Airlines, CORSIA seeks to achieve carbon-neutral growth in emissions from international flights starting in 2019.

While American and other airlines did not face offsetting obligations under CORSIA in 2023 due to reduced flight volumes post-pandemic, the airline is preparing to purchase carbon offsets to comply with CORSIA’s first phase covering emissions from 2024 to 2026. Although increasing the use of SAF is the preferred method for reducing emissions, carbon offsets will play a crucial role in meeting CORSIA’s goals.

Through its partnership with Cool Effect, American allows its customers to purchase carbon offsets. Cool Effect, a nonprofit provider, ensures that over 90% of every dollar spent on offsets goes directly toward funding a portfolio of carbon reduction projects. These projects range from reforestation to clean energy initiatives, helping reduce emissions while also delivering social and environmental co-benefits.

A Broader Commitment to Sustainable Operations

American Airlines’ sustainability efforts go beyond carbon offsets and removals. In 2023, the airline achieved its goal of sourcing 2.5 million gigajoules of renewable energy two years ahead of schedule, demonstrating its commitment to reducing its operational carbon footprint. American’s corporate headquarters and several other facilities are LEED-certified, underscoring its dedication to sustainable design and energy efficiency.

The airline has also implemented numerous initiatives in its Admirals Club lounges, such as switching to compostable flatware, transitioning to reusable flatware, and eliminating single-use plastics. By embracing sustainable materials and reducing waste, American is setting an example of how airlines can reduce their environmental impact both in the air and on the ground.

Reducing Noise and Food Waste for a Greener Future

American is also addressing the impact of aircraft noise and food waste, two often overlooked aspects of aviation sustainability. The airline has voluntarily retrofitted its Airbus A320 jets with vortex generators to reduce noise pollution. It also meets or exceeds the International Civil Aviation Organization’s noise certification standards, further minimizing its impact on local communities near airports.

In 2023, American opened a new catering facility at Dallas-Fort Worth International Airport, designed with sustainability in mind. The facility participates in composting programs and has reduced food waste by over 419,000 pounds in 2023 alone. By analyzing food waste on flights with AI, the airline is also finding ways to adjust its offerings to better match passenger preferences and reduce waste further.

A Collaborative Path Forward

The aviation industry’s path to net-zero is complex, but voluntary carbon markets, alongside technological innovation and sustainable practices, play a pivotal role. American Airlines is at the forefront of these efforts, partnering with innovative companies like Graphyte and Cool Effect to reduce emissions and support the development of a robust carbon offset market. Through collaborative action, sound policies, and continued investment in sustainability, the aviation sector can achieve its net-zero ambitions, helping to mitigate climate change for future generations.

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