The IBAC Carbon Exchange – An Overview
The International Business Aviation Council (IBAC) has recently announced its new alliance with Carbon Trade eXchange (CTX). This partnership will provide a transparent and efficient platform for Business aviation companies to voluntarily purchase carbon credits to offset their CO2 emissions as part of an overall sustainability plan.
The new IBAC Carbon Credit Exchange program is made possible by the new partnership with CTX, which introduced the world’s first electronic exchange for high-quality voluntary carbon credits in real-time more than a decade ago. Members of the exchange can choose from a wide range of offset projects certified by the world’s three leading carbon credit standards:
- The Gold Standard
- UNFCCC Clean Development Mechanism (CDM)
- Verra Verified Carbon Standard (VCS)
Market-based measures, identified in the Business Aviation Commitment on Climate Change (BACCC), outlined that offsetting is part of the overall basket of measures to help the industry achieve the goal of carbon-neutral growth. Carbon credits can be used in the near term to supplement other decarbonisation actions, such as operational improvements, use of sustainable aviation fuel (SAF), and newer, more efficient aircraft. The use of offsets contributes to emissions reductions now while the benefits of other measures accumulate over the longer term.
The offset process begins with fuel monitoring, an industry best practice as recommended by EBAA. Fuel management will help determine CO2 emissions once other efficiencies are in place. Calculating emissions is achieved by using the ICAO-defined ratio of jet fuel CO2 production of 3.16 units of CO2 per one unit of fuel consumed. For example, the use of ten metric tons of jet fuel would need 31.6 metric tons of carbon credits to offset fully.
Working with the leading trusted global carbon offset standards, CTX provides a variety of options to support every carbon offset budget, which will suit and support the values of Business aviation stakeholders.
The system that CTX uses has a fully transparent process. Once carbon credits are purchased, the offset will be issued, and unique certificates of cancellation that cannot be sold or claimed again will be provided to the buyer. CTX is an exchange that works directly with Project Developers and thereby offers prices at a wholesale rate. There are no intermediaries between CTX and Project Developers, resulting in an efficient and transparent offset purchasing experience.
As a special launch offer, CTX is offering the IBAC Business aviation community a 20% discount on the initial membership fee until 31 December 2021 using the discount code IBAC2021. Please visit the IBAC-EX web page. For more details or register now to become a CTX-Business Aviation Carbon Offsetting member.
If you would like more information on carbon offsetting, you can access an “Offsetting 101” presentation; and a “Basic Guide to Offsetting – An Introduction to the IBAC Carbon Credit Exchange” brochure.