The Likely Scenario |
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In our Likely scenario we assume annual improvements in the efficiency with which fuel is used in planes of 0.8% together with 10% biofuels penetration in 2050. This combination of improvement in fleet fuel efficiency and biofuels penetration implies a reduction in carbon intensity of flying. Likely scenario (planned capacity)
Meeting the 2050 target that CO2 emissions are no higher than 37.5 MtCO2 is therefore likely to require policy measures to restrain demand which go beyond our central projected carbon price. The policy instruments which could achieve this restraint include a carbon tax on top of the forecast carbon price, limits to further airport expansion, and restrictions on the allocation of take-off and landing slots even where airports have the theoretical capacity available. |