Trucost Blog

Boeing is reducing its fuel use and carbon footprint, and promises to help airlines do the same with its new 787 Dreamliner. Trucost looks at the potential financial and carbon implications of the 787 for British Airways.

Boeing has cut its greenhouse gas (GHG) emissions by 4% over the past six years, while revenue has risen by more than 17%. Fuel savings have helped cut direct operational emissions (Scope 1), measured in carbon dioxide equivalents (CO₂e), by more than 40%. However, emissions from electricity use (Scope 2) have increased by 44% and now account for almost two-thirds of Boeing's carbon footprint.

Chart 1: Boeing carbon reduction

Boeing is tackling the risks of rising energy costs and carbon dioxide emissions by using more renewable energy and developing advanced technologies. Solar panels are fitted on the roof of the building used to make the new 787 Dreamliner, which aims to help airlines cut their fuel use and carbon footprints: Boeing's 2011 Environment Report. 

Last month saw the first delivery of Boeing's 787 aircraft to All Nippon Airways in Japan after a three-year delay. British Airways has ordered 24 of the 787 aircraft.  Will savings promised from this new wide-bodied jet take off for British Airways?

Trucost looked at potential carbon and fuel cost savings if BA were to replace 130 medium- and long-haul aircraft with Boeing's newest jet.¹ The analysis compares the estimated carbon emissions and fuel use from one year's passenger kilometres travelled by each aircraft type in BA's fleet with potential emissions and fuel use from similar journeys by the 787. Findings show that carbon and energy savings could be significant (see Table 1).

Table 1: BA's potential carbon and fuel cost savings by replacing aircraft with the 787

Annual emissions could be 1.3 million tonnes of CO₂e (Mt CO₂e) lower if the 787 were to replace all 130 aircraft. Emissions avoided could amount to 53 Mt CO₂e over the 40-period that the Boeing 787 is likely to be in use - almost as much as Sweden's GHG emissions in 2009.

Lower emissions could reduce exposure to carbon costs by almost US$1 billion over 40 years, if BA had to pay for all emissions at the average price of carbon allowances under the EU Emission Trading System (EU ETS) over the past three months. Flights to and from Europe will be covered by the EU ETS from next year.  

Total cost savings from the 787, including lower fuel costs, could amount to over US$4 billion over the life of the aircraft. Boeing's focus on the environmental performance of its operations and products could pay off for airlines that are likely to face rising fuel and carbon costs globally over the coming decades.

References

¹  Trucost looked at replacing BA's fleet of 21 767-300s, 46 777-200s, 57 747-400s and 6 777-300s with 130 Boeing 787s.

²  US$17.04 (€12.52) is the average price of EU Allowances for December 2012 delivery under the EU ETS over the three months to 11 October 2011.

³ Cost for 1 barrel of jet fuel taken on 23/09/11 = US$122

Find out more Trucost services for companies

Find out more Trucost services for financial institutions