Airline Sustainability Fees: Are they Worth It?

It is no secret that commercial airlines produce a significant amount of carbon emissions. In 2020, OurWorldInData.org estimated that 3.5% of global CO2 emissions came from the aviation industry and its related activities. This is a large percentage for one industry that can only be accessed by less than half of the global population. Furthermore, by referencing the graph below, you can see that emissions from flying have increased exponentially and show no signs of slowing down. Now that I have scared you and made you feel guilty for flying, let me show you some easy steps to decrease your flying emissions, and subsequently ease your guilt.

Nowadays, airlines will offer to offset the carbon emissions of your flight for an extra fee. It is usually an amount below $10, and the airline promises it will go towards preventing climate change. These extra fees are called voluntary carbon offsetting, and it is estimated that about 10% of passengers opt-in when they purchase a flight. The fees are used to purchase carbon credits at carbon capture companies or donated to other climate-friendly organizations. But, does the fee actually goes towards carbon offset efforts or make a difference?

The truth is, it depends on the airline. Most airlines invest in sustainable projects. However, it can be difficult to know if these projects are valid and will be beneficial for the planet. Delta is currently (as of November 2023) fighting a lawsuit against the claim that their investments are beneficial for the planet. Delta invested in solar panel and wind farms in Indonesian swamps. While clean electricity is good for the planet, destroying swamp land is not. One could argue that the swamp is a carbon reserve and reduces CO2 levels more than a solar panel or wind farm. Air France was accused of investing in not one, not two, but three fraudulent forest conservation projects. The projects are accused of greenwashing as a local rural workers union has accused the projects giving away environmentally friendly stoves and t-shirts. Upon further examination, a study found the projects did not significantly impact the reduction of deforestation in the area. In fact, the region’s prosecutor has filed four lawsuits against the company overseeing the projects. As two of the largest airlines in the world, their actions set precedence in the industry. Investing in fraudulent sustainability initiatives is not a good precedent.

So, airlines cannot be trusted to responsibly invest optional sustainability fees for their intended purpose. The question remains: how to fly without contributing to climate change? The answer is to take the optional fee amount and personally invest it in a verified sustainability investment. An investment I trust the most are carbon capture companies because they are held accountable by private investors.

Carbon capture is extremely difficult and nuanced. The goal is to have a net positive effect on climate change. This is more difficult to achieve than one would think. For example, an airline might purchase carbon credits from a carbon capture facility. The facility’s equipment was probably built in a carbon-producing factory, and then shipped to the facility’s location. Already, the facility must work to capture the carbon they produced simply by building the facility. The facility should also have a carbon neutral energy source and produce as little waste as possible. Which brings us to the topic of the captured carbon; the facility should have a way to store the captured carbon that doesn’t allow it to escape back into the atmosphere.

As daunting as carbon capture sounds, there are some companies that have managed to defy the odds and successfully build a facility that meets all of the requirements stated above. I have compiled a list of four sustainability projects:

Climeworks/Carbfix

Climeworks is a Swiss company that specializes in direct air capture. They have developed special screens that capture carbon from the air when air is blown through it. The plant was built in Iceland and uses geothermal generated electricity to power fans that blow air through the screens. The screens of CO2 are then transferred to Carbfix, which is also located nearby in Iceland. Carbfix dissolves the solidified CO2 in water and combines it with some basalt and other rocks. The slurry is then injected deep underground where the mixture seeps into cracks in the rocks and solidifies. Donations are collected through Climeworks’ website. They accept one time, monthly, and yearly donations. Climeworks’ website has a donation calculator that calculates the amount of CO2 that can be removed from the atmosphere with your donation. Here is the link to donate to Climeworks:

https://shop.climeworks.com/checkout/cart?customizer=true

Aker Carbon Capture ASA

Aker Carbon Capture ASA used to be a part of Aker Solutions, a larger energy infrastructure company and is largely funded and owned by the Aker Group. Aker Carbon Capture produces innovative technology to help existing factories, manufacturers, and refineries reduce their carbon footprint. They have three carbon capture models that can collect anywhere from 40,000-400,000+ tons of CO2 per year. The units can even be built on offshore oil rigs. Each unit has a 95% capture rate and has been praised by multiple different studies. To support this company and their amazing work, individuals can invest in their stock. The ticker symbol is AKCCF and is an over the counter stock which requires a brokerage account to purchase. Investopedia has a fantastic article about OTC stocks, how they work, and how to purchase them, I’ll leave the link at the bottom of this post. If creating a brokerage account is too overwhelming, Aker Solutions is listed on the French stock exchange as 1AKA. Aker Solutions’ goals are to create carbon capture products and products that lower carbon emissions.

Link to Investopedia Article:

https://www.investopedia.com/ask/answers/buy-over-the-counter-stock/#:~:text=If%20you%20go%20with%20a,Counter%20Bulletin%20Board%20(OTCBB).

Sources:

https://energydigital.com/top10/top-10-leading-carbon-capture-companies

https://www.lemonde.fr/en/economy/article/2023/11/20/three-carbon-offset-projects-in-brazil-accused-of-being-scams_6271470_19.html

https://apnews.com/article/delta-airlines-lawsuit-carbon-credits-carbon-neutral-469f2671010ba7f40c934cc23d62149a

https://www.sciencedirect.com/science/article/abs/pii/S0261517721001497

https://shop.climeworks.com/checkout/cart?customizer=true

https://www.carbfix.com/how-it-works

https://www.akersolutions.com/

https://akercarboncapture.com/about-us/key-projects/

https://money.usnews.com/investing/articles/best-carbon-capture-and-decarbonization-investments