FAA floats fuel efficiency standards for new airplanes to drive down emissions

The Federal Aviation Administration proposed a new rule that could cut the greenhouse gas emissions of airplanes flying in U.S. airspace.

The regulation would raise the fuel efficiency standards, as measured through emissions, for new aircraft models yet to be certified before extending to all planes manufactured after Jan. 1, 2028. Commercial jets such as The Boeing Co.'s upcoming 777-X, future versions of the Boeing 787 Dreamliner, and Airbus SE's A330-neo; business jets; and civil turboprop airplanes would all be required to meet the new standards.

The proposed rule, published June 15 in the Federal Register, will not affect planes already in service.

The FAA said in a same-day news release that the regulation would bring new aircraft in line with the carbon dioxide emission standards established by the United Nations' International Civil Aviation Organization. The U.S. Environmental Protection Agency adopted the standards in a 2021 final rule issued under the Clean Air Act.

Boeing praised the EPA rule as a "major step forward" for the environment and the sustainable growth of commercial aviation.

"Boeing welcomes the FAA's notice of proposed rulemaking as it prepares to implement the regulations for the EPA rule and ensure that the final rule affords sufficient flexibility to address the needs of U.S. aerospace manufacturers and the domestic aviation industry," a spokesperson said in an emailed statement.

Airlines for America, a trade association, did not immediately respond to a request for comment.

The proposed regulation measures fuel efficiency by total greenhouse gas emissions, which for airplanes may include carbon dioxide or nitrous oxide. Compliance could be achieved with a variety of fuel efficiency measures, such as improvements to aerodynamics, engine propulsion efficiency, and reductions in mass, the news release said.

The Biden administration has made emissions reduction in the transportation sector a priority in its push for net-zero emissions by 2050. Civil aircraft made up 10% of transportation emissions and 3% of total greenhouse gas emissions in the U.S. before air travel plummeted during the first year of the pandemic, according to the EPA.

In November 2021, the FAA published the U.S. Aviation Climate Action Plan, laying out a "whole-of-government" approach to emissions reduction in the aviation sector. Fuel efficiency measures are one of the solutions identified in the plan, along with sustainable aviation fuels, electric or hydrogen-powered aviation, advancements in airport operations, and carbon offsetting.

U.S. Transportation Secretary Pete Buttigieg called the June 15 notice "an important step in reducing the amount of greenhouse gas emissions released by our nation's airplanes."

Net-zero emissions by midcentury is achievable but highly ambitious for the transportation sector, according to environmentalists. The International Council on Clean Transportation said in a recent report that such a target could only be met with "early and sustained government intervention" triggering widespread investment in zero-carbon technologies. Fuel and airline ticket costs could also increase by as much as 70% by 2050, according to the report.

The public has until Aug. 15 to weigh in on the FAA notice.

S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.