On 18 February 2009, the European Commission stated that just over 2700 airlines would be regulated for carbon emissions. Airlines from all over the world are included in the list, after the European Union agreed to cap emissions from all aircraft that land and take off within the 27-nation bloc. These airlines will be included in the EU Emission Trading Scheme (ETS) from 1 January 2012 (http:// ec. europa. eu/clima/policies/ets/index_en. htm).

The aviation industry is working closely with fuel specification bodies, such as the American Society for Testing and Materials (ASTM) International (www. astm. org). On 5 July 2011, the ASTM gave its approval to use algae and Jatropha as bio jet fuel.

Most of the time, capitalism has managed to produce cheaper goods at a higher quality — I think the airline industry is a worrying exception: it is cheaper, but worse quality.

The total annual global jet fuel consumption is around 200 million tonnes and is expected to double by 2020. If according to the new EU legislation we blend fossil fuel kerosene with 10% biofuel kerosene, by 2020 we are talking about a brand new market of 40 million tonnes with a value of $25 billion at today’s prices.

Second Generation Biofuels and Biomass: Essential Guide for Investors, Scientists and Decision Makers, First Edition. Roland A. Jansen. r 2013 Wiley-VCH Verlag GmbH & Co. KGaA.

Published 2013 by Wiley-VCH Verlag GmbH & Co. KGaA.

As we have seen in Section 15.2, relative to fossil fuels, sustainably produced biofuels result in a reduction in carbon dioxide emissions across their lifecycle.

16.3