Seeing the forest for the trees: Carbon offsets and their place in airfreight logistics

Etihad Airways launched its Abu Dhabi Mangrove program in late February with the goal of removing carbon from the atmosphere while also promoting biodiversity for the UAE’s native mangroves. The program, created in partnership with the Environment Agency Abu Dhabi, The Storey Group, Jubail Island and Etihad, among others, gives guests, corporate accounts and partners the option to adopt mangroves in Abu Dhabi to help reduce their carbon footprint. On average, mangroves store roughly 6.4 billion tonnes of carbon and can capture around 300 kg of carbon in a 25-year lifetime, combatting the impact of global climate change that results in coastline degradation. The buzz around air cargo sustainability efforts such as this one grew in 2021 as various industry players announced ambitious green logistics plans to help reach the common goal of net-zero carbon emissions by 2050. Between stakeholders launching carbon offset programs, forwarders collaborating with airlines on sustainable aviation fuel (SAF) initiatives, and the International Air Cargo Association (TIACA) releasing the industry’s first sustainability roadmap , the community has rallied to show support for this common goal. Still, with airfreight volumes reaching new records and no plateau in sight, it raises questions: What more should be done? Are some sustainability initiatives more worthwhile than others? Do carbon offsets really impact the reduction of emissions? As airfreight demand continues to rise and global trade continues to recover to pre-pandemic times, carbon emissions from the airfreight industry will only continue to rise, and the need for the industry to see the forest for the trees becomes vital. In turn, the air cargo community must continue to critically analyze its own efforts to reach its net-zero carbon goals, and keep the planet green and thriving. Offsets as an intermediate green solution Carbon offsets, which often consist of planting trees or renewable energy projects, are one of the many ways the airfreight community has pledged its commitment to the planet. Considering that carbon offset projects are often dubbed the more “practical” and cost-effective way to address climate change compared with other options like sustainable aviation fuel (SAF), many stakeholders opt to support these initiatives. There has been especially high interest in sustainability efforts from businesses in the environmental and pharmaceutical sectors, as well as automotive verticals, Mark McCullough, CEO of Gebruder Weiss USA, told Air Cargo World . While other manufacturers have also expressed an interest, it primarily depends on the size of the company, he added. The Austrian forwarder, which has been paperless since 2012 and has been investing in a wind farm with four wind turbines since 2011 to help offset its carbon footprint, recently launched its “Zero Emissions” program in January. Gebruder Weiss customers can now compensate for the CO2 emissions generated during the transport of their cargo by paying a sum that is invested into a certified climate protection project. Climate protection projects in partnership with climate solution provider NatureOffice include the Brazil Nut Rainforest Community Project in Peru, which helps establish sustainable harvest practices, a solar power project in India, and a sustainable forest project in Brazil that helps improve forest management practices. “Carbon offsetting is still more prevalent in Europe, Japan and Australia, so the ‘Zero Emissions’ program is good for U.S. companies to get started on an initiative,” McCullough said. “Wherever the costs of energy are high, the interest level in reduction and off-setting carbon is also high.” Meanwhile, carrier Qatar Airways Cargo in January released its own carbon calculator to estimate the carbon emissions generated by transporting shipment within its network. The calculator uses shipment weight, origin and destination to consider all routing possibilities and estimates the emissions for each particular itinerary. For Qatar Airways, the calculator is just the first step; the carrier is currently working to develop a fully integrated carbon offsetting solution that will be featured on its upcoming e-booking portal, Chief Officer of Cargo Guillaume Halleux told Air Cargo World . “Carbon offsetting has benefits at both ends of the process: On one hand, it helps to fund environmental projects that have positive environmental and societal impact. And on the other hand, it gives businesses an opportunity to reduce their carbon footprint in a way that is cost efficient,” Halleux said. “In the absence of readily available SAF, carbon offsetting offers a possibility to reduce the carbon footprint of aviation, and in many cases, with a lower price per CO2 tonne.” Since launching its calculator, Qatar Airways has received positive feedback from freight forwarders and shippers alike, showing the industry’s interest and initiative in carbon neutrality, the carrier said. “Commercial-scale deployment of SAF is years away, which means that the industry needs to make use of other means to mitigate emissions and meet its climate goal,” Halleux said. “That is why carbon offsetting is an essential tool in the industry’s climate strategy as a transition or complementary measure.” Large results rooted in small initiatives Still, while offsets support sustainable practices and raise awareness, many industry stakeholders view carbon compensation projects as merely an intermediate solution to a global problem. “We don’t believe in using offsets as the main solution — it’s always your intermediate to reach the end goal, and that’s reduction within the sector itself,” David van der Meer, cargo partnerships director at Schiphol Airport (AMS), told Air Cargo World . Instead, AMS has prioritized reducing its emissions since 2012, with the intention of also decreasing the number of offsets needed. So far, the airport has reduced its electricity consumption, phased out the utilization of natural gas and installed solar panels. AMS currently runs on 100% wind energy that is generated by windfarms in the Netherlands, Denise Pronk, program manager of corporate responsibility at AMS, told Air Cargo World . The airport is now well on its way to reaching zero emissions. While seemingly small, these transitional changes have major impacts that directly reduce emissions, rather than compensating for them. And although carbon offsets are still utilized at AMS, the airport continues to find ways to cut waste. For instance, AMS in 2018 introduced a new type of flower box for its partnership with the Holland Flower Alliance that makes flower shipments more efficient and sustainable. The boxes, trialed on the AMS-Nairobi (NBO) route for two months, save space, volume and weight, enabling airlines to cut costs on fuel, van de Meer said. Ground handler Worldwide Flight Services has also recently taken to consciously reducing its waste, and in 2021 converted to BioNatur Plastic biodegradable stretch wrap for cargo shipments . Within 12 months, the handler had reduced its non-biodegradable plastic wrap waste by 616,885 kilograms, which is roughly equal to 68 million plastic water bottles. While plastic is still being used, the switch to a more sustainable product has decreased the amount of time the waste will take to break down in a landfill to 10 years from 1,000. Cargo carriers and freight forwarders have also continued to promote the use of SAF on flights . Delta recently launched a SAF program to help freight forwarders and shippers reduce their environmental footprint. Meanwhile Illinois-based sustainable fuels technology and production company LanzaJet partnered with Marquis Sustainable Aviation Fuel in February to construct a 120-million-gallon capacity sustainable fuels plant in Illinois, where the SAF will then be piped to Chicago O’Hare International Airport (ORD) and Chicago Midway Airport (MDW). While initiatives like switching plastic wrap may seem small, sustainable measures add up to a large impact on the cargo industry’s carbon footprint. “It’s really important to first reduce the emissions in the sector without using offsets,” Pronk said. “That’s why we are already pushing the [use] of sustainable aviation fuel … Offsets are good as an intermediate measure, however it does not mean that you can stop taking reduction measures.” The tech transition is green The digitalization of the industry has also played a significant role in transitioning it toward a greener future. As a way to integrate the various players in air cargo — from truckers and handlers to freight forwarders and carriers — and provide greater supply chain visibility, some airports have opted to implement cargo community systems (CCS). CCS utilize neutral, open technology platforms to enable secure information exchange between parties operating at airports. While few CCS exist in the U.S ., several have already been established across Europe, Asia and the United Arab Emirates . While providing visibility and optimizing processes are a vital part of a CCS, the technology platform eliminates the need for excessive amounts of paper, and directly impacts the environment. “On average, air cargo shipments are accompanied by 30 types of documents and 124 copies of paper, and out of these 124 copies of paper, maybe about 20% to 25% is the regulatory documentation that is required by different governmental agencies,” Kale Logistics Director Amar More told Air Cargo World . “If you look at the [remaining] 75% of the documents, those could be replaced by digital equivalents.” At Kale’s CCS at Mumbai (BOM) airport, the team ran a small initiative to reduce roughly nine copies of paper per shipment, a savings of the equivalent of nearly 1,000 trees, according to More. While replacing nine pages with a digital copy may seem like a small gesture, the cargo community could end up saving a whole forest, More added. AMS has also harnessed the power of digitalization to boost its sustainability efforts, and in 2018 launched a Smart Cargo Mainboard Program at the airport. “Most of the [cargo] processes are still working the way they did in 1970,” AMS’ van der Meer said. “The good thing about digitalization is that it goes hand in hand with sustainability so, as a prime example, we’ve introduced a digital pre-notification for our cargo process, which is now mandatory here at the airport. “That has a very positive effect in terms of sustainability because it not only saved a whole lot of paper which was being used in the cargo stream, but it also allows us to blend the arrival and pickup of cargo shipments together with the handlers and the expeditors in a far more efficient manner.” While transforming systems or making process changes may seem challenging, it is necessary to think critically about day-to-day operations and their impact. “Step out from what you’re doing and look at everything objectively and, while our industry is so busy, [ask yourself] is this paper really needed? How can we remove this?” Kale’s More said. “Everybody is in a flow without stepping back and looking at alternative solutions, or just discussing those alternative solutions.” Accelerating sustainability With so many stakeholders and cargo players involved, accelerating sustainable change within the community is complicated, AMS’ van der Meer said. “We’re dealing with a whole lot of parties involved, but the good news is that right now you’re seeing [pressure] from e-retailers on airlines to really make those steps, and that all trickles down to an aircraft handler because they’re also being challenged by the airline,” he said. “And the same goes for the rest of the chain for an expeditor, and the one who’s carrying the freight to its destination.” Stakeholders have also expressed the need for government incentives when it comes to sustainable changes, including subsidies at the state, local and federal levels. Incentives are especially needed for SAF, which is accompanied by high premiums . Some state governments, including California’s, have already started incentives, but there is still room for improvement and expansion. Lack of proper leadership can also be a barrier, Kale’s More added. “Someone has to take leadership in this, and maybe it’s the largest airline in the country or maybe it’s the airport, which is a neutral entity,” he said. “They have to take leadership and make it a task or a sustainable goal to [encourage] digital collaboration.”

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