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Pin to quick picksInternational Airlines Share News (IAG)

Share Price Information for International Airlines (IAG)

London Stock Exchange
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Share Price: 178.30
Bid: 178.20
Ask: 178.30
Change: 5.25 (3.03%)
Spread: 0.10 (0.056%)
Open: 174.65
High: 178.45
Low: 174.25
Prev. Close: 173.05
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British aviation industry outlines plans for net-zero emissions by 2050

Tue, 04th Feb 2020 00:01

By Susanna Twidale

LONDON, Feb 4 (Reuters) - Britain's aviation industry has
set out plans to reach a target of net-zero carbon emissions by
2050, even with the building of a third runway at Heathrow
airport which is expected to drive up flight numbers.

The plans were published on Tuesday by the Sustainable
Aviation coalition of companies in the British sector, including
engine-maker Rolls Royce, airline easyJet, BP's
aviation fuel arm AirBP and planemaker Airbus.

Meeting the emissions target is likely to require several
major changes in the industry, such as more efficient aircraft
and a significant increase in the use of sustainable aviation
biofuels, which are currently not widespread.

It may appear a tough goal, given air passenger numbers are
expected to grow 70% by 2050, pushing up the number of flights.
But the industry, which accounts for around 7% of Britain's
emissions, says it will also offset its own emissions by funding
reductions elsewhere.

Carbon offset projects can include planting trees or helping
to fund renewable power projects such as wind or solar in
developing countries.

The coalition said the emissions target could be met despite
the expected business growth, adding: "This includes the opening
of a third runway at Heathrow by around 2030."

However critics say offsetting emissions reduces incentives
for the drastic emissions cuts needed to slow global warming and
does not always bring the intended benefits; for instance, new
trees may not grow as quickly as promised.

The Heathrow expansions plans, which include building the
first full-length new runway in the London area for 70 years,
are also opposed by climate protesters and some local residents.

British Prime Minister Boris Johnson has opposed Heathrow’s
expansion in the past, but lawmakers approved the plans in 2018.

The aviation sector's plans are in line with Britain's
target to reach net-zero greenhouse gas emissions by 2050. It
was the first G7 country to set such a goal, which will require
wholesale changes in the way people travel, eat and consume
electricity.

CARBON PRICING

EasyJet last year became the world's first major airline to
operate with net-zero carbon across its flight network by using
carbon offsets.

The coalition plan also expects carbon pricing - where CO2
producers pay the government for each tonne they emit - to play
a role, as the cost is likely to be passed on to consumers and
thus somewhat curb burgeoning passenger numbers.

"A carbon price which rises to 221 pounds ($288) a tonne by
2050 will reduce demand by around 30 million passengers per year
and reduce carbon emissions from UK aviation by around 4 million
tonnes of CO2 per year," the report said.

The aviation sector is currently included in Europe's
Emissions Trading System, with the benchmark carbon contract
trading around 23 euros ($25) a tonne.

Despite Britain's departure from the European Union, the
country remains a member of Europe's Emissions Trading System
during the transition period until the end of the year.

Andy Jefferson, Programme Director at Sustainable Aviation
said the 2050 target for the sector was in line with
recommendations made by the U.N. Intergovernmental Panel on
Climate Change.

($1 = 0.7663 pounds; $1 = 0.9042 euros)

(Reporting By Susanna Twidale; Editing by Pravin Char)

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