In our last blog about CORSIA and recent CORSIA webinar, we talked about how airlines need to prepare for the scheme’s first key milestone on January 1, 2019. To recap, that date is when airlines from countries participating in the first phase of CORSIA need to ideally start monitoring their CO2 emissions for international flights.
In this post, we’ll look more closely at some of the common challenges airlines are facing when trying to prepare for the monitoring and reporting requirements of CORSIA. We hope this will inform your CORSIA plans and to-do lists and help you to avoid a number of potential pitfalls.
What should airlines be aware of?
As we said in our last blog, new regulations always bring new challenges and CORSIA is no different. In 2017, airlines started working through CORSIA guidelines and auditing their own internal systems and processes as the first step towards meeting the January 2019 deadline.
During that process, carriers may have discovered that their data collection systems and IT infrastructure needs to be adapted or overhauled completely.
Here are some of the key challenges that CORSIA poses and how these might have implications for how you collect, store and process fuel data.
1. Classification of routes
Since CORSIA will only apply to certain routes, particularly in the first voluntary phases (2021-2026), your software must allow you to easily classify routes as ‘CORSIA’ and ‘non-CORSIA’ or something similar.Certain types of flight are exempt from the scheme – for example humanitarian flights, firefighting or medical flights – so these will need to be segregated too.
As more countries become affected by CORSIA and as your operations change, you need to be able to easily add a new CORSIA route or change the classification of a route that was previously exempt. Emissions from this route should then be included in your CORSIA reports.
You need to consider whether your current systems do this easily and automatically.
2. Different calculation methods
One of the main complexities of CORSIA is that the scheme will include five possible methods for calculating CO2 emissions, as well as a separate method specific to lease aircraft.
Whilst still being finaliszed, each method requires slightly different data to be collected from various sources. It’s imperative that you understand these methods and decide upon the one that best fits your operation.
Ideally, you then need procedures and IT solutions in place that enable efficient and, where possible, automated data capture, calculations and reporting specific to that CORSIA method.
3. Changing requirements
The exact details of CORSIA’s monitoring, reporting and verification requirements are still being finalized and every three years from 2022, ICAO will review the scheme to see if any adjustments need to be made. In addition, the sector’s emissions baseline will be recalculated by ICAO every year.
This means that whatever IT system you use for CO2 emissions monitoring and reporting, it will need to be updated regularly. Ideally, its infrastructure should be flexible to allow for this.
4. Emissions forecasts
Since participating airlines will be required to buy offsets for the proportion of their emissions that are above the baseline, you need to be able to accurately forecast your emissions.
This is a huge challenge requiring a lot of data and complex calculations but it’s vital for effective budgeting and cash flow control.
Ask yourself whether your current IT solutions enable you to forecast accurately and easily.
5. Comprehensive records
Airlines will need to ensure they have a complete and comprehensive record of how emissions data has been collected and calculated – for verification and for audit.
Do your current systems and processes make this task a simple job or a laborious undertaking?
In addition to these five key challenges, there are also some other potential implications of CORSIA that are as yet uncertain. These are:
- Whether pooling is applicable for CORSIA
- How exceptions and justifications will be handled – (unavailability/ inaccuracy data- 100% is impossible) – estimate will pay more if data inaccurately recorded
- How scenarios such as tankering and other grey areas will be affected.
We will be covering these more complex issues later in the year as we drill into more detail behind the data requirements, calculation methods and verification requirements.
The shortcut around these challenges
If your airline is trying to adapt its existing IT platforms to work for CORSIA, it might feel like an uphill struggle. We have an alternative, low-risk and affordable solution where a lot of the hard work has already been done for you.
We have spent the last year researching CORSIA and its complexities and developing a CORSIA-ready Emissions Module that can handle all of the different emissions calculation methods and collect data from all relevant sources. It has a flexible infrastructure so that features can be easily changed, removed or added as CORSIA’s requirements develop.
It can ensure you are CORSIA-ready in a matter of weeks and is potentially a fraction of the cost of consultants or other solutions. The features have been tested by some of the world’s largest airlines and the software is based on an established, successful solution (FuelPlus Emissions Module) which has been used for EU ETS tracking since 2010.
What does our CORSIA-ready Emissions Module do?
It collects, consolidates, integrates and cleans data from various sources to calculate your airline’s emissions. Sources include operational data, fuel messages, ACARS transmissions, ARINC/SITA telex, load sheets, schedules, flight reports and more.
If you already use the FuelPlus platform, most of this data will be collected already so configuring the Emissions Module will be straightforward.
Find out more about our emissions module in our CORSIA Data Sheet.
Throughout 2018, we will be rolling out a number of additional features including integration with IATA’s industry-wide FRED database and advanced analytics.
The software can be fully hosted and can work as a standalone module or as an integral component of the FuelPlus platform. If you already use our Emissions Module, CORSIA is just a feature that can be easily enabled.