IATA-IETA CORSIA Workshop United Airlines MRV Presentation March 15, 2016 Miami, FL
Agenda 1. Introduction MRV Overview 2. EU ETS Reporting MRV A. Fuel consumption methodology B. Identifying included flights C. Calculation of emissions D. Risk analysis E. Verification 3. Alternate Reporting MRVs A. FRED reporting B. Greenhouse Gas Footprint 4. Learnings A. Identifying risks B. Determining uncertainties C. Establishing and utilizing redundancies 2
Introduction MRV Overview Monitoring Reporting Verification Basic methodologies to minimize an operators burden, while facilitating effective reporting of greenhouse gas emissions pursuant to regulatory requirements. The mechanism by which greenhouse gas emissions are informed to the appropriate regulatory authority, via parameters set out in regulation. Third party verification of operators reports to ensure accuracy and transparency in the reporting process. 3
EU ETS Reporting MRV United is subject to reporting for the European Union s Emissions Trading Scheme (EU ETS), which has an extensive MRV process. All intra-eu (to/from EU aerodromes) flights Fuel data input from various sources Several internal data checks are completed, overseen by Operations Planning & Analysis. Third party verification process initiated after end of reporting period (annual) 4
Fuel Consumption Methodology CO2 emissions are calculated by multiplying the fuel consumption by emission factors specified by reporting requirements. There are two main fuel consumption calculations: METHOD A Fuel in tanks after fuel uplift is complete Fuel uplift for the next flight Fuel in tanks after fuel uplift for next flight complete METHOD B Fuel in tanks at block-on from previous flight Fuel uplift for flight Fuel in tanks at block-on at end of flight United calculates fuel consumption by Method A for all aircrafts 5
EU ETS Reporting MRV Identifying Included Flights The following information is tracked in operational data tables, populated daily from aircraft movement system, with a specific EU ETS application data table applied to identify flights subject to reporting Aircraft type Flight number Tail number Date Departure location Arrival location A filter is then applied to sort only the flights on routes applicable to reporting requirements. 6
EU ETS Reporting MRV Calculation of Emissions Fuel Consumption METHOD A Fuel in tanks after fuel uplift is complete Fuel uplift for the next flight Fuel in tanks after fuel uplift for next flight complete Fuel in tanks after fuel uplift Fuel uplift for flight Measured in pounds by aircraft or crew Verified by flight crew Transmitted via ACARS Recorded, in gallons, by flight crew Crosschecked against fuel slip Transmitted via ACARS Fuel slips are sent to United Fuel Accounting Fuel slip data is stored in a database and used as a secondary data point Data exported to operational data tables, with ongoing checks to ensure data completeness and accuracy. 7
EU ETS Reporting MRV Calculation of Emissions Fuel Density Fuel density is a data point collected from most stations, where available, via direct entry into the Aircraft Movement System. Density is automatically calculated for fuel remaining in tanks via aircraft densitometer or compensator, displayed in mass Each station required to record an actual density daily and enter data into the Aircraft Movement System Depending on aircraft and flight plan, more specific density measurements may be available A standard density value is used as tertiary data source, only if the above data values are unavailable 8
EU ETS Reporting MRV Calculation of Emissions Data Sources The following is an example of data sources for a given flight on an included route: Method A/B Fuel Uplift Fuel in tanks Density of fuel uplift Density of fuel in tanks Transmitting/ Retrieving Data Method A Measured by flight crew Measured by aircraft or flight crew Actual density measured by station or fuel vendor Actual density measured using densitometer or compensator (not reported) Electronic transmissions from aircraft or aircraft movement system to operator records 9
EU ETS Reporting MRV Calculation of Emissions Operations Planning & Analysis Data, from the various inputs, comes together via an IT process, allowing granularity and automation in reporting. A Daily Batch Script is created from automated daily inputs Station density records Fuel in tank after fuel uplift Aircraft Movement System Daily Batch Script The Daily Batch Script is held in United s Data Warehouse system, which runs a Monthly Script (including fuel from tanks via flight crew). An EU ETS Application has been created to then generate an MRV report from that monthly script. Data Warehouse System Monthly Script EU ETS Application Generate EU ETS MRV Report 10
EU ETS Reporting MRV Risk Analysis Control activities were established to mitigate potential data issues in a risk analysis during implementation: Risk Monitoring not in place for in-scope flight Aircraft excluded from run reports Missed flight data due to failed data transmission Accuracy of fuel values outside acceptable tolerance range Density inaccuracy Inaccurate data from flight crew Control Activities Operations notified of requirements and given training Monthly cross-check against CRCO data Monthly cross-check against CRCO data Fuel accounting cross-check Fuel accounting cross-check, or standard values as tertiary data point Systems maintained to manufacturer s specifications, instrumentation checked routinely, routine maintenance done 11
EU ETS Reporting MRV Verification The EU ETS verification process has become much more streamlined, as reporting years have gone on. Part of this has been an established process with our verifier. Initial conversations, kicking off annual verification process, begins as early as 4 th quarter of previous year Monitoring Plan implementation verification and data testing now conducted remotely, via file transfers and phone interviews Tertiary data sources provided as additional confirmation of data integrity 12
Alternate Reporting MRVs United has rigorous MRVs for fuels reporting, for the purpose of our internal and external fuels reporting. These differ from the EU ETS MRVs. IATA Fuel Reporting & Emissions Database (FRED) Reporting Reporting of fuel consumption, RTK, ATK, biofuel consumption, and purchased carbon offsets United Greenhouse Gas Footprint Carbon footprint, developed internally, to broadly characterize United s environmental impacts, extending beyond aircraft combustion to ground support equipment, natural gas combustion, and indirect emissions 13
Alternate Reporting MRVs FRED Reporting FRED requires reporting of raw values, rather than a calculated CO 2. This data is customarily tracked by finance, and thus contains a various periodic reviews and data checks via internal auditing. Data sources are outlined below: Data RTKs and ATKs Fuel Consumption Biofuel Consumption Carbon Offsets Data Source Financial Accounting Calculated solely from fuel uplift Newly applicable to UAL, starting 2016 Third party relationship through which this is verified. 14
Alternate Reporting MRVs Greenhouse Gas Footprint United s Greenhouse Gas Footprint utilizes data sources beyond just fuel consumption, and thus employs a separate third party verification to ensure data accuracy and transparency. Emissions Calculated Aircraft fuel combustion (mainline operations only) GSE fuel combustion Natural gas combustion Purchased electricity use Data Source Block-to-block flight operational data from fuel uplift Inventory data and actual fuel use (where available) Invoices (where available) or standard emission factors Third party database (where available) or factors applied to known square footage 15
Learnings Over the course of MRV implementation specifically of the EU ETS program United has learned many lessons that have led to more streamlined and efficient approaches to reporting. Learning #1 Identifying Risks Learning #2 Determining Uncertainties Leaning #3 Establishing and Utilizing Redundancies 16
Learnings Identifying Risks As discussed, a risk analysis was completed at the time of EU ETS implementation, to account for known potential risks. Additional outcomes from the Risk Analysis, which have been helpful over the course of EU ETS reporting have been: Creating a decision tree that has been socialized among stakeholders Identification of potential data quality issues Highlighting system dependency to ensure robust management of IT/system changes or transitions Identification of third party vendors supporting systems and ensuring IT compatibility 17
Learnings Determining Uncertainties With any data dependent system, an established tolerance for uncertainty has to be established. Several learnings are: Align with equipment/ manufacturer accuracy by maintaining equipment per specifications Uncertainty for fuel uplift mirror s United s Fuel Operations Manual (helpful for verification process) Secondary and tertiary data sources allow uncertainty to remain as minimal as possible 18
Learnings Establishing and Utilizing Redundancies Regardless of how newly implemented the MRV process may be, there are always opportunities to align the data sources with existing groups, within the business, who already have robust processes in place. Data quality risk assessment is key, up front. Understand where your system is not strong, and if other key business functions have a mechanism to track this data Utilize existing data checks to align and cross-check (e.g., EUROCONTROL CRCO invoices are good to validate against Finance s records) Build systems that read among one another, allowing a more streamlined validation process 19
Questions? 20