AWG assesses, provides information on, and takes action relating to, environmental matters geared to the context of aviation financing and leasing. The foregoing includes the development of metrics, methods, emissions (and CORSIA-related liability) tracking, reporting and documentation and/or principles geared to the context of aviation financing and leasing.
Manual on Best Practice under Interpretation of the EU Taxonomy for Sustainable Activities
On 15 January 2025, AWG released the 1st Edition of the Manual on Best Practice under Interpretation of the EU Taxonomy for Sustainable Activities (‘Best Practice Manual).
The Best Practice Manual was issued jointly by AWG and the International Air Transport Association (IATA). Summarised in an accompanying PPT, it addresses the Technical Screening Criteria for the manufacturing of aircraft, the leasing of aircraft, and the passenger and freight air transport.
The Best Practice Manual, was produced following extensive consultations among aviation industry members and engagement with relevant regulators and assessors. Without limiting its other uses, this guidance document has been prepared in the context of reporting requirements under the EU’s CSRD regime.
The contributing industry members include 350 airline members of IATA, a number of lessor and manufacturer members of AWG, and a number of non-affiliated airlines and industry members.
The Best Practice Manual, which will be updated by IATA and AWG (reflecting engagement with industry members, regulators, and external auditors) from time to time as events warrant, will play a key role in connecting requirements of the EU Taxonomy to industry practices, with a developed analysis. The approach is to provide detailed and consistent rules, applied through the lifecycle of covered assets in view of customary operations and transactions.
AWG EU submissions
In April 2026, AWG submitted a letter on the EU Taxonomy on Proposed amendments to delegated regulations (EU) 2021/2139. The letter is of public record and can be found here.
In May 2023, AWG submitted a comment letter on EU Taxonomy as applied to Aviation (Commission’s draft Delegated Act supplementing Regulation (EU) 2020/852 and amending Delegated Regulation (EU) 2021/2178).
In September 2021, AWG has submitted a letter to the EU Commission on the EU taxonomy draft technical screening criteria for passenger air transport.
The above letter, builds on a prior AWG submission letter to the EU Commission on principles for the EU taxonomy on green financing applicable to aviation financing and leasing.
In that letter, AWG expresses support for a single international system for classification of green aircraft financing and leasing, to avoid conflicting national or regional standards, based on 5 principles:
- Principle 1 – feasible improvement standard
‘Environmentally sustainable’ in the context of ‘the sale, lease and operation of aircraft’ should be measured in terms of feasible and meaningful improvement. The use of less carbon-intensive aircraft should be considered to ‘contribute substantially’ to climate change mitigation. The physics of flight, safety testing requirements, and the practicalities of production compel this standard.
- Principle 2 – incentive standard
The classification of an aviation-related activity as ‘environmentally sustainable’, and its potential economic and social benefits, should be an incentive for selecting a less carbon-intensive option, having regard to all material selection factors: including, availability, CapEx, OpEx, seating/cargo capacity, safety, and operational requirements. That incentive should not be limited to new aircraft, but, rather, should be based on meaningful reduction in CO2 emissions.
- Principle 3 – aircraft class differentiation standard
Aircraft classes (regional, single-aisle, wide-body and subcategories thereof) should be used in connection with the ‘best performance’ criteria for green-financing qualifying ‘transitional activities’. Best performance is a technical concept, not numerically capped.
- Principle 4 – ICAO certification standard
Whether an aircraft meets the applicable ‘best performance’ threshold should be determined with reference to ICAO aeroplane CO2 emissions certification. That is a UN-endorsed, internationally recognized standard. It is based on the technical characteristics of an aircraft without consideration of its utilization, which financiers and lessors cannot control.
- Principle 5 – data-based self-reporting standard
Monitoring and regulation should be centered on data-based self-reporting standard. That is the simplest and least costly approach. The objective nature of the ICAO certification standard (principle 4) makes that feasible. Determination should be made at the time of financing or leasing. The AWG carbon calculator could be used to report supplemental information in a consistent and comparable manner.
AWG carbon calculator
On 31 March 2021, AWG launched the AWG carbon calculator (ACC). The AWG carbon calculator has been developed to address the need for accurate, reliable, and consistent aircraft carbon dioxide emissions data to be available to aviation industry participants. AWG released a short video introducing the AWG carbon calculator.
The AWG carbon calculator uses original equipment manufacturer source data, which has been determined and provided for operational aircraft models under consistent standards, assumptions and methodology, and so the source data is both accurate and directly comparable.
Users of the AWG carbon calculator can provide aircraft-specific operational inputs, to generate accurate, reliable and consistent carbon dioxide emissions data for aircraft and aircraft portfolios, with the data presented visually through various tabular and graphical outputs. Default inputs for annual hours and cycles are also available as an option for users
All data, graphs and certificates are exportable, thus enabling users of the AWG carbon calculator to include them for internal committee meetings, corporate reporting, evidencing compliance with criteria required for green financing, investor presentations and offering documents.
The AWG carbon calculator will make it easy for its users to generate and compare accurate, reliable and consistent carbon dioxide emissions data for aircraft and aircraft portfolios.
Manufacturer data for the ACC is being provided by Airbus, ATR, Boeing, and Embraer.
The ACC was developed by propel-ant, and AWG was supported in its implementation by Watson Farley Williams. The ACC is part of AWG’s work on Environmental Social and Governance (ESG), geared to the context of aviation financing and leasing.
AWG supports global efforts to substantially lower and offset carbon emissions, ensuring sustainable development of air transport.
That supports extends to the ICAO’s developed carbon offsetting and reduction scheme for international aviation (CORSIA). CORSIA seeks to stabilize CO2emissions at 2020 levels by requiring airlines to offset the growth of their emissions after 2020.
Financing that takes into account ESG principles and metrics geared to the context of aviation financing and leasing, including for acquiring and using modern aircraft and engines with advanced environmental technologies, is essential.
AWG has developed a statement of principles on the impact of environmental regulation.