20-02-2020 · Stunning statistics

Short-haul flights are the worst offenders for CO₂

Domestic and other short-haul flights are the most carbon-intensive form of travel, figures show.

    Authors

  • Roman Boner CFA - Senior Portfolio Manager

    Roman Boner CFA

    Senior Portfolio Manager

What has happened?

Aircraft on routes of 700 kilometers or less emit more carbon dioxide per person for every kilometer traveled than long-haul flights: 251 grams per km for short haul compared to 195 g/km for long haul. That’s due to the fact that take-off and landing uses the most fuel, making level flight over whatever distance relatively cleaner.

By comparison, a diesel car emits 171 g/km of CO2 with one passenger, or an average of 43 g/km for four passengers, according to UK government figures. An urban bus emits 104 g/km and a coach 27 g/km due to its greater weight efficiency. Electrified domestic rail, including shorter suburban services, emits 41 g/km.

The most efficient form of transport is the transnational Eurostar, emitting only 6 g/km per passenger on trips through the Channel Tunnel. It means someone who flies from Amsterdam to London but returns on the Eurostar will be responsible for 20 times more CO2 emissions on the flight there than on the train back.

image.png

Source: BEIS/Defra Greenhouse Gas Conversion Factors 2019

Reducing carbon emissions from all sources to make the world effectively carbon-neutral by 2050 is essential to meet the goals of the Paris Agreement. This seeks to limit global warming to 2 degrees Celsius or less above pre-industrial levels.

The entire transport sector is responsible for about 14.7% of all greenhouse gases emitted. The biggest contributor is not the more CO2-intensive airline industry, responsible for about 1.7% of all CO2 emissions, but road vehicles, accounting for 10.5%.

One problem is that unlike cars, aircraft cannot be battery powered – the batteries needed to get a 200-ton aircraft off the ground would currently weigh three times as much as the plane. However, work has begun in the US in trying to develop a hybrid electric engine for a 186-seater plane, with the first test flight due in 2023.

What does it mean for investors?

“Electrification will transform all modes of mobility, transport and travel,” says Thiemo Lang, portfolio manager of the RobecoSAM Smart Mobility fund which targets companies operating in this sector. “Though the pace of change varies by vehicle and purpose, the revolution is underway and accelerating.”

“Emissions regulations and improved economics are shaping the market, coupled with increasing urbanization and growing megacities which create demand for the sustainability of all modes of public transportation and the rise in private electric vehicles on our streets.

“For investors, this presents an opportunity to participate in the transformative shift towards zero-carbon mobility. The RobecoSAM Smart Mobility strategy focuses on companies enabling this transformation in all its forms – ground, sea, and sky – including component suppliers, electrical grid and charging suppliers, and data connectivity solutions providers.”

Stunning statistics

Every month we look at stunning statistics related to trends and thematic investing. What do they mean? What is the impact for investors?

Read all articles

Let's keep the conversation going

Keep track of fast-moving events in sustainable and quantitative investing, trends and credits with our newsletters.

Stay updated
Robeco

Robeco aims to enable its clients to achieve their financial and sustainability goals by providing superior investment returns and solutions.

Important information This disclaimer applies to any documents and the verbal or written comments of any person in presentations or webinars on this website and taken together is referred to herein as the “Information”. The services to which the Information relate are NOT FOR RETAIL CLIENTS - The information contained in the Website is solely intended for professional investors, defined as investors which (1) qualify as professional clients within the meaning of the Markets in Financial Instruments Directive (MiFID), (2) have requested to be treated as professional clients within the meaning of the MiFID or (3) are authorized to receive such information under any other applicable laws and must not be relied or acted upon by any other persons. This Information does not constitute an offer to sell, or a solicitation of an offer to buy, any financial product, and may not be relied upon in connection with the purchase or sale of any financial product. You are cautioned against using this Information as the basis for making a decision to purchase any financial product. To the extent that you rely on the Information in connection with any investment decision, you do so at your own risk. The Information does not purport to be complete on any topic addressed. The Information may contain data or analysis prepared by third parties and no representation or warranty about the accuracy of such data or analysis is provided.
In all cases where historical performance is presented, please note that past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. Investors may not get back the amount originally invested. Neither Robeco Institutional Asset Management B.V. nor any of its affiliates guarantees the performance or the future returns of any investments. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency. Robeco Institutional Asset Management B.V. (“Robeco”) expressly prohibits any redistribution of the Information without the prior written consent of Robeco. The Information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use is contrary to law, rule or regulation. Certain information contained in the Information includes calculations or figures that have been prepared internally and have not been audited or verified by a third party. Use of different methods for preparing, calculating or presenting information may lead to different results. Robeco Institutional Asset Management UK Limited (“RIAM UK”) is authorised and regulated by the Financial Conduct Authority. RIAM UK, 30 Fenchurch Street, Part Level 8, London EC3M 3BD (FCA Reference No:1007814). The company is registered in England and Wales under Ref No. 15362605.

In all cases where historical performance is presented, please note that past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. Investors may not get back the amount originally invested. Neither Robeco Institutional Asset Management B.V. nor any of its affiliates guarantees the performance or the future returns of any investments. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency. Robeco Institutional Asset Management B.V. (“Robeco”) expressly prohibits any redistribution of the Information without the prior written consent of Robeco. The Information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use is contrary to law, rule or regulation. Certain information contained in the Information includes calculations or figures that have been prepared internally and have not been audited or verified by a third party. Use of different methods for preparing, calculating or presenting information may lead to different results. Robeco Institutional Asset Management B.V. is authorised as a manager of UCITS and AIFs by the Netherlands Authority for the Financial Markets and subject to limited regulation in the UK by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.