Carbon offset programs have been besieged with controversy about whether or not they are more about being political correct than effective. That, however, did not stop the International Air Transport Association from launching a new program affording passengers the ability to compensate for the carbon emissions.

At the same time the International Civil Aviation Organization Group on International Aviation and Climate Change (GIACC) suggested “an aggressive” plan for the industry to improve fuel efficiency by 2% annually. This would represent a cumulative improvement of 13 % in the short-term (2010 to 2012), 26% in the medium-term (2013 to 2020) and about 60% in the long-term (2021 to 2050), from a 2005 base level, said the organization.

To help those states requiring assistance in achieving the recommended goals, GIACC proposed “a basket of measures” including aircraft-related technology development advancing aircraft design as well as the development of “drop-in” biofuels to replace fossil-based fuels; improved air traffic management and infrastructure use; more efficient operations; economic/market-based measures; and regulatory measures.

Even so, GIACC recommendations retained its arms-length attitude on global emissions trading at a time when international airlines are counting on it to set the stage for such trading in the face of regional trading initiatives being imposed around the world.

“Given diverging views on the application of market-based measures across national borders," said the organization, "the GIACC recommends that the ICAO Council establish a process to develop, expeditiously, a framework for market-based measures in international aviation, taking into account the conclusions of an ICAO high level meeting on the subject to be held from 7 to 9 October and the outcome of the Conference of the Parties (COP-15) of the UNFCCC in Copenhagen, in December. Overall, each state would retain the ultimate authority to choose the portfolio of measures appropriate to its circumstances, consistent with the global aspirational goals, and will be encouraged to develop and file with ICAO individual action plans, for coordination and assistance if needed.”

Instead it recommends an enhanced global coordinating role for ICAO as well as the development of a CO2 standard for new aircraft types. In addition, the group wants ICAO to facilitate State reporting of traffic and fuel consumption and the monitoring of progress towards achieving the 2% annual reduction every three years.

The new IATA program, launched by TAP Airlines, contributes to carbon reduction projects in developing countries and, in TAP’s case, focuses on a renewable energy project in Brazil: the Aquarius Hydroelectric Project. Aquarius is a grid-connected run-of-river hydropower plant. It partly replaces fossil fuel-based electricity generation and already reduces greenhouse gas (GHG) emissions by approximately 15,000 tons CO2 equivalent per year.

The program is part of IATA’s four-pillar environmental strategy focusing on improved technology, effective infrastructure, efficient operations and positive economic measures.

“The IATA Carbon Offset Program sets a good example of industry leadership in economic measures,” said IATA Director General said Giovanni Bisignani at the organization’s World Air Transport Summit in Kuala Lumpur this week. “The IATA Carbon Offset Program only invests in the most credible projects. These are UN approved Certified Emissions Reductions (CER) projects and voluntary credits which comply with the recognized Gold and or Voluntary Carbon Standards. Airlines participating in the IATA Carbon Offset Program pay for all administration costs. The passenger contribution therefore goes to the sponsored project. Transparency is critical to ensure that monies collected result in reduced emissions. These are important reassurances that will help build passenger confidence in carbon offsets.”

The IATA program calculates carbon emissions based on a methodology developed by the International Civil Aviation Organization (ICAO), and according to IATA, “uses the efficiencies and reliability of IATA’s US$350 billion financial systems to enable airlines and their passengers to purchase their ticket and their offset at the same time.” IATA administers the process on behalf of airlines. This includes advising on project selection, arranging the purchase of carbon credits and managing and providing offset tracking.

The program comes as the Department of Energy doubts that the carbon capture and sequestration (CSS) technologies called for in the Waxman-Markey global warming bill will not be ready before the 2025 deadline set in the bill. Specifically, DOE indicated they will not be commercially viable by the deadline.

Meanwhile, the House of Representatives marked its major environmental legislation for quick passage establishing deadlines for consideration by other policy bodies within the House. The move comes after the House Energy and Commerce Committee approval May 21 of the Waxman-Markey bill that calls for a 17% emissions reduction by 2020 and 83% by 2050 using 2005 as the baseline.