Report on fuel and air transport

radical changes to match past trends in fuel efficiency. Engine manufacturers offer

the prospect of technology enhancements creating fuel burn reductions of around 4%,

and future developments such as the open rotor could offer up to 20% improvements.

Renewable fuels decouple fuel costs from the price of oil, reduce dependence on

petroleum and are more carbon neutral than fossil fuels. Second generation bio-fuels,

such as algae, do not compete for land and water resources with food crops and are

favoured because of the relatively high oil yields predicted.

The EU ETS will be introduced in 2012, initially capping airlines’ CO

97% of their average annual levels between 2004 and 2006. Airlines producing

emissions above this level will be required to acquire permits. Some protection is