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Rising air traffic numbers bring rising emissions with them. To reduce the local impacts on the environment, Zürich Airport – in accordance with national law – set an incentive for low-emission aeroplanes. Since September 1997, the general landing fee was reduced and high-emission aeroplanes pay a surcharge. Zürich is ”air-efficient”: less air pollution, modern air traffic.
Zürich with its 350,000 inhabitants is the largest city in Switzerland*. It is situated in the north-eastern part of Switzerland. The city is famous as an international centre for banking and insurance companies as well as being a cultural centre in the north-eastern Switzerland.
The airport covers a surface area of 8 km2 and is situated about 10 km north of Zürich. In 1997 there were 276,000 take-offs or landings, carrying 18.3 million passengers and 472,000 tons of cargo. The work is done by approx. 20,000 employees. The Zürich airport is connected to regional, national and international public traffic (buses, train etc.).
* The Swiss political system is formed by a federation of States (”Kantone”), the regional level. The national level (”Bundesregierung”) is a federal body.
Based on national and regional clean air policies, Zürich Airport introduced an emission surcharge which is based on engine emission and performance parameters. The aim is to reduce specific emissions from air traffic in order to satisfy political conditions in the context of airport expansion plans required to meet future demands of air traffic. The airport authority believes more in levying emission fees to accelerate the introduction of modern engine technologies than in issuing emission related operating limits.
The airport was not increasing its revenues due to this surcharge, but the costs have been reallocated in line with the polluter-pays principle. First, a general reduction of the weight-based landing fee of 5% was given for all aircraft. Then the surcharge of between 0 to 40% of the landing fee has to be paid depending on the class of the engine emission. This classification is as recommended by the National Department of Transport and Energy. Revenues from the surcharge are used to finance programmes related to the reduction of aircraft emissions.
According to the clean air policy laid down by the national parliament, emissions of air polluting substances are to be reduced to the levels of 1960. One of the tools is the Clean Air Ordinance 1983. Air pollution is to be reduced where it exceeds existing limits and the regions are under obligation to set up a ”clean air action plan”. The Region of Zürich did so in setting up its programme in April 1990, revising it in June 1996, confirming that all emission sources have to contribute their share to the overall reductions.
Calculations and measuring campaigns showed levels of nitrous dioxide (NO2) and ozone (O3) in the region North of Zürich exceeded the limits where the airport is located. Engine manufacturers have achieved big improvements in fuel efficiency over the last decades. Modern jet engines generally have lower emissions of – for example – CO2, but air traffic still is the largest single source of NOx emissions. Therefore special emphasis was given to stabilise the airport related NOx emissions despite expected traffic increase. The implementation of the surcharge was intended to stimulate the development of new technologies with reduced emission of NOx.
In the late eighties the Zürich Airport set out its future plans for expansion. The environmental study that came along with this development plan showed an increase in emissions under the ”business as usual” scenario.
Further studies showed that if all aircraft operating to Zürich were equipped with low emission engines, emission levels could at least be stabilised – even if air traffic increases as predicted. But best available technology needs to be used. Therefore, the Region of Zürich submitted a proposal to the national authorities to introduce emission-related surcharges as an economic incentive.
According to Swiss clean air policy and the related regulations, the regional government (Kanton), being the airport operator, then took appropriate measures to prevent an increase of air pollution in the region.
Zürich Airport is run by the Region of Zürich. Therefore, the credit for the required expansion programme had to be approved by a public vote. During the debate, the regional parliament decided to raise the issue of an emission surcharge and made it a condition for taking specific elements of the planned infrastructure into service. Furthermore, Zürich Airport has always been willing to take responsibility in questions of environmental protection.
On basis of National Clean Air Policy (see above) the regional government proposed the introduction of an emission surcharge to the national government in 1993. This was necessary because aviation is subject to national legislation. For that reason, the Region or the Airport are not allowed to introduce such a surcharge by themselves.
In 1995 the national parliament passed the new aviation law and therewith created the legal base for the emission surcharge – saying that air pollution by aeroplanes should be considered when setting up landing fees. The regulations about air pollutants and emission were part of a wider revision of existing aviation law. According to the new aviation law of 1. January 1995, it is within the competence of the airport operator to define the emission surcharge, although the regular procedure involves consultations with other airports, airlines and national authorities.
On this legal base the regional government could draw up its own plans for the introduction and implementation of the emission surcharge. The Federal Office for Civil Aviation (FOCA), being the national authority, co-ordinates all measures and regulates the design of the surcharge. The Airport itself is responsible for setting the rate structure.
On this basis an extension to a more effective surcharge, where very low emission aircraft would be subject to a refund, is planned.
As in the case of any other airport fee or charge, there is a regular consultation procedure involving the Airport Authority, the FOCA and airline operators. Detailed financial analysis about measures and costs, involving simulations with air traffic in Zürich, provided results for 1996 and gave airlines the opportunity to consider possible effects on their own fleet. The surcharge was introduced in 1997.
The proposed classification model and surcharges are in compliance with Swiss legislation and conform to the CARFM report (Conference on Airport and Route Facility Management, June 1991) as well as to the principle guidelines of the International Civil Aviation Organisation (ICAO) for surcharges or taxes. The ICAO is a division of the United Nations (UN) handling the global regulation of air traffic. This organisation sets standards and makes recommendations for many issues concerning aviation, such as safety and the environment (noise, pollutants). These standards have to be transferred into national law, recommendations are voluntary. Engine manufacturers will follow these rules.
The emission-related surcharge was primarily intended to provide an incentive for the specific emissions from air traffic to be reduced, by the use of the best available engine technology, in order to stabilise airport emissions without having to set limits for operations.
The surcharge does not finance general costs, e.g. of infrastructure investments of the airport, but is only used for financing costs related to reduction of emissions from air traffic.
To characterise emissions from aircraft engines in this context, it is sufficient to consider the pollutants nitrous oxides (NOx) and hydrocarbons (VOC – volatile organic compounds). These two substances are the main contributors to combustion-related air pollution, predecessor of ozone, and they are explicitly designated for reduction in the National Clean Air Policy. Carbon monoxide (CO) and sulphur dioxide (SO2) no longer cause a significant pollution problem, whereas other substances are more relevant for the greenhouse effect than as pollutants. CO2 emission is proportional to fuel consumption. Because fuel efficiency has a very high priority in aircraft engine design by definition, it was believed that CO2 needs not be taken as a factor for incentive in this context.
The FOCA, in cooperation with the National Office for Environmental Protection, Zürich and Geneva Airport Authorities as well as an airline have worked out a model for the classification of engines according to their emission characteristics and for application of related surcharge. The main guidelines were to relate the surcharges to aircraft engine emissions, to secure operational freedom of airline operators and to keep the revenue bound for air traffic emission reduction programmes.
The characteristic emission data for most aircraft engines can be found in special data bases. According to the emission certification data every aircraft operator will be able to calculate the engine emission factor (EEF) for each aircraft in his fleet.
Several factors have to be taken into consideration for the calculation. The main factors are:
• Size
of an aircraft:
a large aircraft obviously emits more pollutants
than a small one, but also has a bigger transport capacity
• Characteristics
of the engine:
the max. thrust or power installed reflects not
only the size of the aircraft, but also the technical development
• Landing
and take-off cycle (LTO):
this allows one to look at aircraft
emissions during the entire flight, but flight profiles are not
standardised
First the general landing fee was reduced by 5%. Then the surcharge was added. The revenues were therefore not increased.
Fig: Effect of emission surcharge on the airport’s revenues
The surcharge (depending on the aircraft engine emission) is levied as an additional percentage of the regular landing fee to be paid by every airline operator. It is within the competence of each airport operator to determine the percentage per emission class, because income requirements are calculated on the basis of the airport operator’s medium term budget for costs related to air traffic emissions.
The airport operator may change the percentages at any time, but for reasons of transparency and long term planning, they will not be altered too frequently.
Fig: Effect of emission charge on airlines
Today’s activities as well as the expansion programme for Zürich Airport include a number of measures involving environmental protection related to aircraft emissions. The share of the costs that are covered by the emission surcharge depends on the ecological benefit of the measure.
It varies between 100% (measure entirely for air pollution reasons) and 1% (measure helps to reduce emissions, without being responsible for the benefit). Examples are:
• air pollution monitoring station (100%)
• fixed ground power stations (100%)
• additional taxiways to reduce taxi-times (40%)
• aircraft approach/departure system (10%)
The costs for the different measures amount to approx. 2.745 million Euro/a. Thus, emission surcharge revenues remain allocated to air traffic purposes.
As it is not possible to budget long-term expenditure and income very accurately, unused funds or a shortage of a given year will be considered in the calculation of the following years. Any alteration of the emission surcharge will take the previous surplus or deficit into account.
This surcharge may be withdrawn, when the clean air objectives are achieved (emissions from air traffic are reduced to and stabilised at the level required by the authorities) or if the whole aircraft fleet uses the best available technique. It is likely, however, that a surcharge will be maintained beyond existing emission reducing costs, but then the funds raised will be redirected to operation of low emission engines.
The introduction of the emission surcharge is not just a general increase of the landing fee. Based on the 1996 financial review and a forecast, the existing weight based landing fee will be generally decreased by 5%. Costs for emission reduction measures that have been covered by general finances so far will now be financed with the emission surcharge according to the polluter-pays principle. The total emission surcharge revenue would have amounted to approx. 2.745 million Euro in 1996, if it had been in effect.
The effect for the airport is such that the overall revenues from air traffic remain unchanged. The emission surcharge is just compensating the overall reduction in the landing fee.
The effect for the airlines are far less stringent than what might be expected. Based on 1996 traffic figures, 2/3 of all landings are unaffected by an increase due to the new surcharge.
Because the surcharge was only introduced in 1997, it is still too early for concrete results. First evidence about the impact of the surcharge on emissions will be available after two or three years when enough measurements will have been compiled.
The influence of the charge on the development of new engines with reduced NOx emission will only be seen after a period of 20 years, the usual time for the development and distribution of an engine.
But what can be stated at the moment is, that the surcharge bears a high potential for environmental improvement (reduction of NOx emission). It may also initiate discussion processes between many other airports and organisations about the possibility of implementing a surcharge using the Swiss model.
Independent of economic effects, emission surcharges may also signal an innovative environmental policy at local, regional or national level and does improve acceptance of an airport. As airport operators act as private companies on a competitive market, their levies are less regulated by national law, but by the market mechanism. It therefore can be introduced if the airport owners, often local or regional authorities, decide to do so.
Because the surcharge is based on a transparent model and is easy to handle, it can be easily introduced by other airports, thus multiplying its environmental benefits.
The different elements of this emission surcharge have been the basis for a directive of the National Department of Transport and Energy which was passed on to all Swiss airports in August 1996.
It is obvious that pollution standards in future cannot remain at today’s levels. Airports which hesitate in introducing economic instruments, could one day be struck by regulations – not being prepared to meet them.
Some airports did already follow the Zürich example. An emission charge with a similar model has been introduced on January 1st 1998 in Sweden. And Geneva airport in Switzerland is planning to introduce the surcharge on November 1st 1998.
Mr. Emanuel Fleuti
Zürich Airport Authority
Environmental Protection
CH - 8058 Zürich (Switzerland)
telephone: +41 - 1 - 816 21 81
facsimile: +41 - 1 - 816 47 60
email: emanuel.fleuti@zrh.zh.ch
taken from:
First Mover Advantage by Eco-efficiency - local incentives for environment and employment, Guide on economic instruments for local and regional authorities, An ICLEI "Policy & Practice Series" Publication, Including a foreword by Ritt Bjerregard, European Commissioner
Publishers: The International Council for Local Environmental Initiatives (ICLEI), Congress of Local and Regional Authorities of Europe (CLRAE), Editor: Konrad Otto-Zimmermann (responsible), Authors: Christoph Erdmenger, Sandra Schreckenberger
Paperback, DIN A4, 114 pages, 30 DM
See also http://mail.iclei.org/store1/merchant.ihtml?pid=103&step=4
© ICLEI, Freiburg, 1998