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WORLD ACW Digital is sponsored by AIRPORTS.COM FREIGHTERS.COM

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15/07/2021 11:04


The weekly newspaper for air cargo professionals No. 1,154

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25 OCTOBER 2021

Munich Airport creates Climate Forest

Air Charter Service predicts busiest-ever final quarter Air Charter Service predicts that the coming months might represent the busiest-ever peak season for cargo aircraft charters, as the global supply chain disruption meets the increasing demand in the run up to Christmas with the container market, shipping routes, ports, trucks, railways and warehouses all still struggling during the fallout caused by COVID-19 around the globe. Dan Morgan-Evans, global cargo director at Air Charter Service, commented: “The average price for a 40-foot shipping container is now more than 300% higher than a year ago and certain popular shipping routes are 500% up on 2020 levels. Add to this the bottlenecks caused by the HGV driver shortage in Europe and the scheduled passenger airline network recovering slower than expected, resulting in a lack of belly capacity, the demand for air cargo charters is expected to hit unprecedented levels.

INSIDE

QATAR AIRWAYS AND SAL SIGN

SAL Saudi Logistics Services has signed a cargo ground handling agreement with Qatar Airways Cargo to provide comprehensive ... PAGE 2

ANA LAUNCHES SAF INITIATIVE

ALL Nippon Airways (ANA) is launching “SAF Flight Initiative,” a new and dedicated programme to reduce CO2 emissions. Designed ... PAGE 2 BIFA: DON’T CANCEL CHRISTMAS

FREIGHT forwarding companies remain committed to delivering a suitably festive Yuletide, as we witness a seasonal whirlwind of ...

Charter prices rise “We are already seeing this cause charter prices to rise to record levels. As more aircraft are booked up, we are having to find aircraft to position in from increasingly large distances to service key routes. This is a particular problem in Asia at the moment with trans-Pacific prices hitting $2m for a charter on a Boeing 777 for the first time compared with around $750,000 at its best pre-pandemic levels. If you had asked me a few years ago whether anyone would take an option of an aircraft positioned in at that price I would have said it’ll never happen, but some shippers have simply been left with no other options. “In the past couple of weeks we’ve started to

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receive calls from retailers who normally wouldn’t dream of chartering. The problem they are having is that whilst their standard capacity is generally booked up in advance, in the last three months of the year they usually book additional capacity ad-hoc to deal with spikes in Christmas demand more reactively, creating the traditional peak season for air cargo. “Usually there is excess air cargo capacity to cope with this increase, but this year the air cargo market is already at capacity. It is looking

like it might be what you could call a ‘peak peak’ season. As a result, we will no doubt have to use what have been dubbed ‘preighters’ (empty passenger aircraft with cargo packed on seats and in the hold) moving forward to keep up with the demand. We were able to cope last year with the demand for PPE, utilising these aircraft that were not being used as scheduled routes were slashed, but the market has been constantly changing, so our teams around the world are already working hard to secure capacity for our clients.”

SEKO OPENS FACILITY AT LAX CAMPUS

SEKO Logistics has opened the latest facility in its LAX Campus close to the Port of Long Beach and Los Angeles International Airport, increasing ... PAGE 5

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NEWS

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ANA launches SAF Initiative

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“ANA has long been a leader in advancing sustainability in the airline industry, and this fuel initiative further demonstrates our ability to meet the demands of society. As SAF will play a major role in reducing carbon emissions, we will continue looking for ways to accelerate its adoption,” said Yuji Hirako, president and chief executive officer of ANA. “At ANA, we recognise that preserving our environment requires that we build broad coalitions committed to achieving a common goal, and we will continue to work with partners to help them reduce their carbon footprint in line with our own ambitious targets.” ANA reports it is following the standards initially outlined in the GHG Protocol which requires companies to reduce all emissions, even those which are indirectly generated from activities outside of their core business. Currently, disclosure of the impact of climate change on business performance is becoming mandatory in many countries around the world, and non-financial information on how companies are fulfilling their social responsibilities is increasingly being treated as a condition when making investment decisions.

ll Nippon Airways (ANA) is launching “SAF Flight Initiative,” a new and dedicated programme to reduce CO2 emissions. Designed to promote Sustainable Aviation Fuel (SAF) by collaborating with leading companies in this area, the programme is the latest effort by ANA to decrease its carbon footprint and adhere to the guidelines established by the United Nations Sustainable Development Goals (SDGs) as well as meet ANA Group’s environmental commitments announced in April 2021. The SAF Flight Initiative builds on ANA’s past work in this area and aims to work with leading partners across a range of industries, supporting their efforts to reduce emissions in the value chains as well as to expand the production and use of SAF. Nippon Express, Kintetsu World Express and Yusen Logistics have announced that they will participate in the SAF Flight Initiative, a sign of the increasing appeal of SAF in the aviation industry. ANA conducted a SAF-powered cargo flight with these three major logistics and cargo companies on September 29, the first flight by a Japanese airline to conduct a joint operation using SAF.

Qatar Airways Cargo signs handling contract with SAL

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AL Saudi Logistics Services has signed a cargo ground handling agreement with Qatar Airways Cargo to provide comprehensive ground logistics support at Saudi Arabia’s main airports, including Riyadh, Jeddah, Dammam and Medina. The agreement is in line with one of the company’s initiatives of increasing the number of partnerships with regional and global airlines that have high cargo shipping capacities. Hesham Alhussayen, CEO of SAL, commented: “This agreement will enhance logistical operations between Saudi Arabia and Qatar. Moreover, given Qatar Airways’ global reach and substantial shipping capacity, we look forward to providing it with cargo ground handling services to the highest international standards. This new partnership reflects our growing network of international and domestic relationships across airlines, regulators, government agencies, and global industry organisations.” He added: “Over the year and a half, SAL has responded to the COVID-19 pandemic by boosting our operational efficiencies to meet the unprecedented demands of handling a wide variety of emergency, medical, and other life essential goods to those who need them most. This journey reinforced our belief in the power of partnerships and, as such, we have signed several cooperation agreements to expand our ground handling and logistics services even further.”

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NEWS

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Aero Africa: FitsAir Cargo GSA in South Africa BIFA: Don’t cancel

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ero Africa Sub Saharan South Africa, a branch of Aero Africa air cargo management group, have been appointed as Cargo General Sales Agent (GSA) by FitsAir Cargo. FitsAir Cargo has been a pioneer in the air cargo industry since 1997, connecting cargo to and from every corner of the globe and serving the world for over two decades with an extended outreach. Having progressed and made advancements over the years, FitsAir Cargo now caters for a wide range of air freight solutions to choose from. The carrier has a vast interline network supported by special prorate agreements with over 150 partner carriers including prime carriers and Road Feeder Services, utilising its 319 prefix. It is a member of the IATA Clearing house and the Multilateral interline Traffic agreement (MITA). FitsAir’s AWB is registered with customs in

most parts of the world including almost all airports in India and in the USA. It has also satisfied the advanced commercial information requirements of the Canada Border Services Agency. FitsAir product is also supported by its

own mixed fleet and contracted cargo charter flights for its exclusive use. “We are extremely pleased to announce this appointment. This newly struck partnership further strengthens our neutral wholesale and airline brokerage products, and widens our reaching coverage to and from South East Asia, India sub-continent and beyond. FitsAir’s interline partnership with over one hundred leading airlines, will enable us to offer our clients uplift solutions with reliability to and from hard to reach airports and complex destinations. Our professional and experienced team will work continuously to position Africa as an important point of sales for the airline’s international network,” says Jade Da Costa, CCO Aero Africa. “We are very pleased to be working with such an energetic partner like Aero Africa and are looking forward to closely collaborating,” says Musaab Kassim, director FitsAir.

Celebi installs BME at Kempegowda International Airport

ÇELEBI has announced that it has been appointed by BIAL to install and operate Bridge Mounted Equipment (BME) at all Passenger Boarding Bridges (PBB) of Terminals 1 & 2 and provide BME Services to airlines operating at Kempegowda International Airport, Bengaluru (KIAB). BME services will be available for airlines at Terminal 1, effective January 2022 and from commencement date at Terminal 2. Çelebi will provide the “2400 Power Coil” units and “3400 Pre-conditioned Air (PCA)” units which will be installed and operating in the weeks and months to come. With commencement of BME services, KIAB is in line with various regulatory policies such as National Green Aviation Policy (Draft), DGCA Civil Aviation Requirement (Section 10 – Aviation Environmental Protection) and guidelines issued by global bodies like ICAO and IATA that focus on reduction in carbon footprint

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and greenhouse gas emissions. Benefits of BME to Airline Bridge Mounted Equipment, which consists of external Pre-Conditioned Air (PCA) units and Fixed Electrical Ground Power (FEGP) units, runs on electric power and takes over the functions of the aircraft auxiliary power unit (APU), while the aircraft is on ground. Key benefits of BME service to airlines are: reduction in APU maintenance cost; fuel cost saving on APU operations; reduced CO2 emissions, around 80-85%, and noise pollution; efficient and safer aircraft turnaround activity. BME allows airlines to achieve safer, and more economical operations during ground time. Additionally, it enables airlines to benefit by use of available airport infrastructure efficiently and achieve long-term cost benefits.

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Christmas just yet True Christmas logistics in action

FREIGHT forwarding companies remain committed to delivering a suitably festive Yuletide, as we witness a seasonal whirlwind of worry and rumour that this year’s Christmas festivities in around ten weeks may just not happen as a result of the current supply chain challenges. Robert Keen, director general of the British International Freight Association (BIFA) says it is time to maintain a sense of perspective, or the headlines may become a self-fulfilling prophecy. “Many products that consumers are beginning to fear will be absent from shop shelves could well have been shipped and received by retailers already. “If we see normal purchasing patterns, we should also see that most of what consumers are seeking will be available to purchase. “Are there major operational challenges, currently? Yes, of course, but our members and freight forwarders across the world, that are responsible for managing the supply chains that underpin global trade, are moving hell and high water to address them and doing their part to ensure that the forthcoming holiday season will go ahead as well as possible.”

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TECHNOLOGY

Automation at your fingertips BIG Box Group have teamed up with ProGlove to make automation a more attractive, affordable and accessible proposition for small and medium-size enterprises (SMEs), helping them identify better ways to save costs and improve efficiencies. Jason Dyche, director of Big Box Automation — part of the Big Box Group — says the wearable and wireless scanning technology is an exciting and innovative solution for retail, e-Commerce and third-party logistics (3PLs), as the importance of automation within the industries continues to grow. He said: “We have one simple aim, and that’s to help our clients hit their targets and achieve their objectives. This partnership with ProGlove is just another way we can help them work faster, reduce dwell time and improve their return on investment (ROI). “At Big Box Automation we use data to identify cost-saving opportunities. Picking, moving and sorting takes a varying amount of time depending on the technology you use, so we look at where the gaps are and provide solutions like ProGlove that can really speed up the process.” ProGlove are barcode scanners designed to be mounted on the hand. They allow the wearer to get instant and reliable scans while leaving both hands free to focus on their job. One client that has really benefitted from

the ability to draw everything together and keep things simple and affordable for a scope of businesses, from SMEs up to blue chips,” adds Dyche. “Knowing what we have in the locker, we can collect data based on current activity and apply automation solutions to offer the best ROI to the client.

Automation now a necessity

the technology is e-Commerce experts Rex Brown, who provide many of the world’s largest consumer goods businesses with bestin-class solutions for accessing marketplaces and social commerce channels. Dyche continues: “Rex Brown are picking 18% faster compared to the previous technology they were using. The accuracy of the scanner, which works from more angles and greater distances, is really helping them to pick faster, and more precisely, than before, especially when it comes to those hard-to-

read barcodes. “The data of the scan goes instantly to their existing mobile Enterprise Resource Planning (ERP) applications. Ultimately, it’s making life easier and less painful for them — and, crucially, it’s delivering on ROI.” By observing the activity in warehouses, Big Box Automation is able to see where time and energy is being lost, and how their sister partnerships with Balyo and GreyOrange — in addition to ProGlove — can add value. “Through our trusted partnerships, we have

For the vast majority of businesses, automation has become a necessity to keep pace with the modern market. Dyche concludes: “We all know how technology has influenced our day-to-day lives through the emergence of online delivery, which is driven by automation and robotics. That same technology is now available across all business sectors. “Almost every business is facing the same challenge, and what we’re trying to do is show — through our data analysis, ROI projections and partnerships — that automation and robotics can be a genuine solution for those businesses who perhaps thought it was beyond their budget. “SMEs, 3PLs and e-Commerce most certainly have a seat at the automation table. Being proactive today means being less reactive tomorrow.”

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IATA WORLD CARGO SYMPOSIUM A

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Brendan Sullivan, global head of cargo, IATA

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his year the IATA World Cargo Symposium was held in the Emerald Isle, in the city of Dublin. Delegates from all over the world gathered to discuss the latest cargo trends, gain industry insight and network with the global community. Brendan Sullivan, global head of cargo, IATA kicked off the event on an optimistic note. With the first WCS since 2019, he said the event was a sign the industry is on “the road to recovery”. “Air cargo is a critically important industry. This pandemic reminded us of that. During the crisis, it has been a lifeline for society, delivering critical medical supplies and vaccines across the globe and keeping international supply chains open.” He noted that the success of the vaccine race was the defining operation of the past year, dubbing it the “most sophisticated logistic operation” ever undertaken. “For many airlines, cargo became a vital source of revenue when passenger flights were grounded. In 2020, the air cargo industry generated $129 billion, which represented approximately a third of airlines’ overall revenues, an increase of 10–15% compared to pre-crisis levels. “Looking towards the future, the outlook is strong. We need to maintain the momentum established during the crisis and continue building resilience post-pandemic,” he said. It is expected that revenue from air cargo will reach $175 billion in 2021. The outlook for air cargo in the short and long-term is strong. Indicators such as inventory levels and manufacturing output are favourable. World trade is forecast to grow at 9.5% this year and 5.6% in 2022, e-Commerce continues to grow at a double-digit rate, and demand for high-value specialised cargo – such as temperature-sensitive healthcare goods and vaccines – is rising.

Three pillars of growth Sustainability, modernisation, and safety were highlighted as key priorities for the industry post-pandemic.

Sustainability “Sustainability is our industry’s license to grow. Shippers are

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becoming more environmentally conscious and are being held accountable for their emissions by their customers. Many are now reporting how much their supply chains produce in emissions, and they are looking for carbon-neutral transportation options. We all need to meet customer expectations for the highest standards of sustainability. The path from stabilising to reducing net emissions will require a collective effort,” said Sullivan.

Modernisation “The pandemic accelerated digitalisation in some areas as contactless processes were introduced to reduce the risk from COVID-19 transmission. We need to build on this momentum not only to drive improvements in operational efficiency but to meet the needs of our customers. The biggest growth areas are in cross-border e-Commerce and special handling items like time and temperature sensitive payloads. Customers for these products want to know where their items are, and in what condition, at any time during their transport. That requires digitalisation and data,” said Sullivan.

Safety Safety was highlighted as a priority for the industry, specifically the transport of lithium batteries. “Demand for lithium batteries continues to rise as does the risk from lithium battery related fires. Our main concern has been around accidents from rogue shippers who miss-declare shipments. But the incident on the ramp at Hong Kong International Airport earlier this year reminded us just how big the challenge is. The investigation indicated that loading and handling was as per regulation and the consignment was declared correctly,” concluded Sullivan.

CEIV Lithium Battery launched at WCS IATA took the opportunity of the World Cargo Symposium to announce the new industry certification programme— Centre of Excellence for Independent Validators Lithium Battery – to improve the safe handling and transport of lithium batteries

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across the supply chain. “Lithium batteries are critical power sources for many consumer goods upon which we all rely. And it is vital that we can ship them safely by air either with finished products or as components in global supply chains. That’s why we developed the CEIV Lithium Battery certification. It gives shippers and airlines assurance that certified logistic companies operate to the highest safety and security standards when shipping lithium batteries,” said Willie Walsh, IATA’s director general. Shipments of lithium batteries (alone or with finished products) must comply with well-established global safety standards for how they are manufactured, tested, packed, marked, labelled, and documented. These requirements are a key element of the IATA Lithium Battery Shipping Regulations (LBSR) and of the IATA Dangerous Goods Regulations (DGR) which combine regulatory and operational input from industry and government experts.

Reflecting on the year gone by Willie Walsh and Lynne Embleton, CEO of Aer Lingus, sat down to reflect on the unprecedented changes of the past year and how the cargo industry adapted. Embleton noted that the industry had an impressive response to COVID. She said the industry deserves credit on the way businesses pivoted to cargo almost overnight. Walsh added that with the advantage of hindsight he believes that the industry was too soft on governments early on and in fact representatives should have put pressure on governments to limit strict restrictions that created difficulties with trade lanes. “It’s been incredibly rewarding” to be working in the industry during the pandemic, said Embleton and despite the challenging circumstances there have been positive takeaways. One being the “newfound appreciation of cargo.” “Going forward I hope airline decision making may be different” and less based around passenger operations, said Walsh.

PHOTOS: Mel Maclaine - The Photo Project

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How was it for you?

INDUSTRY STILL Yuval Baruch: I loved Dublin! DRIVEN BY PEOPLE Yuval Baruch, chief executive officer for Hermes Logistics Technologies

Christian Dornhaus, managing director EMEIA, PayCargo

After months of online events, how was an in-person WCS? It was great to see the amount of people at the venue and the feedback was overwhelmingly positive about being able to meet people face-to-face. As the industry is still driven by people, those opportunities were desperately needed after a long time spent in a virtual environment; the little nuance in a personal conversation truly makes the difference. We met plenty of people and the follow-ups to carry on the discussions and build relationships will certainly keep us busy post-event. IATA did a fantastic job on short notice to pick Dublin and the safety measurements were top notch. What were the key themes and takeaways from this year's event? The topics of digitalisation and collaboration – themes from previous years – remained, however, this year all attendees emphasised that its vital to the industry to drive innovation and change. Digital technologies played a fundamental role during the pandemic to speed up recovery efforts and remote working capabilities. It is allowing the sector to open up and share data and information in a collaborative way, which will lead to new technology and disruptive ideas from start-ups and expert companies in their field. This is what will drive success in the future. In addition, we saw great presentations and panels around safety and security as well as the need to be an attractive employer of choice in our industry for a young and diverse next generation. Initiatives like the mentoring scheme Women in Aviation and Logistics is just one great example how we can engage as leaders today.

After months of online events, how was the experience of an in-person WCS? Meeting people, having coffee, lunch or a drink together but also being able to truly interact in person was fantastic. This human interaction where you learn that people have more to them than “head & shoulders” was something I missed and really enjoyed at the WCS in Dublin. What were the key themes and takeaways from this year's event? In my view there were two, and I was

happy to see that Hermes was aligned and active on both. The first was digital collaboration. It is clear that everyone should push to collaborate with other stakeholders digitally. The second is that people should be at the centre – they are the real driver, the talent that drives innovation and the ones that can take the industry forward. How was Hermes involved in the event? At this event Hermes focussed on our customers and networking to expand our digitalisation collaborations. We made sure we sat in detailed meetings with our customers so we would not miss

the opportunity to properly connect with them face-to-face. We also ensured to meet other technology partners and potential partners, so our digitalisation collaboration efforts continue and expand. Did you get a chance to explore Dublin? Yes, with a capital “G” (for Guinness). I found Dublin to be a great city for beer lovers. I toured the Guinness distillery and spent time (and Guinness Euros) at the famous Temple Bar and even managed to visit the fabulous Library at Trinity College to see the Book of Kells. I loved Dublin.

How was PayCargo involved in the event? Despite the short notice change from Istanbul to Dublin, we were pleasantly surprised to see how well attended the event was. It was a tight schedule between all the sessions and then back-to-back meetings with stakeholders, and every meeting we had was meaningful with decision makers. This is not always the case at these events, so we are pleased with this outcome. It was definitely worth our investment in time and effort to attend. Our global chief commercial officer, Lionel van der Walt, also actively participated in some of the sessions at the conference, moderating the Challenges and Opportunities: Air Cargo Transformation session during the opening plenary with Michael Steen from Atlas Air Worldwide (EVP and CCO) and Peter Penseel from CEVA Logistics (COO Airfreight) as panellists, as well as moderating the Sustainability Panel Session: Focus on People during the closing plenary with Celine Hourcade (Change Horizon Founder), Sara van Gelder (Nallian Cargo Development Manager) and Hendrik Leyssens (Swissport VP Global Cargo Operations) as panellists. Did you get a chance to explore Dublin? We did not have much time to explore Dublin but managed to enjoy a meal or two out with industry colleagues and friends. We were pleasantly surprised to see most establishments were open and operating as usual except for a few COVID restrictions such as requiring face masks and social distancing measures that were in place.

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Munich Airport creates Climate Forest MUNICH Airport has come to an agreement with the Count Arco’sche Forest Administration to turn existing forests in eastern Bavaria into “climate forests” that store as much carbon dioxide as possible. The project was unveiled to the public at Munich Airport’s Visitors Park by the Bavarian finance minister and supervisory board chairman of Munich Airport, Albert Füracker, Munich Airport CEO Jost Lammers, and Max-Georg Graf von Arco auf Valley. “Climate protection and the airport go hand in hand in Bavaria. With the new climate forest, Munich Airport is again demonstrating that CO2 neutrality is a key component of its modern and sustainable corporate strategy. It creates a valuable natural area with a high level of biodiversity, while at the same time offering an attractive recreational area for everyone. The climate forest benefits not only the airport, but also the people of Bavaria,” emphasises Füracker.

Carbon-offset Airport CEO Jost Lammers: “The Climate Forest is a significant step closer to our goal of operating Munich Airport carbon-neutrally by no later than 2030. We are particularly delighted that we have been able to launch such a large carbon-offset project such a short distance from our airport.” “Forests can absorb large amounts of CO2 from the at-

mosphere – that much is the consensus among scientists. In co-operation with Munich Airport, we are proving that a sustainably managed forest is more effective in protecting the climate than an unmanaged forest. Moreover, when wood is processed into durable products such as wooden houses or furniture, the CO2 remains permanently absorbed. Using wood – protecting the climate,” adds Count Arco. As Munich Airport plans to operate the airport carbon-neutrally by no later than 2030, the plan is to reduce the CO2 emissions which the airport is able to influence by at least 60% with technical measures. The remaining 40% will be offset through appropriate projects located within the region if possible. The new Climate Forest is a core component of this planned

carbon-offsetting. Once completed, around 1,900 hectares of existing forest will be optimised in such a way that the trees can store as much CO2 as possible. The number of trees planted here is also to increase considerably, creating a mixed forest that can later capture more than 7,000 tonnes of CO2 a year – around a third more than standard commercial forests. The airport will use this ‘extra’ for carbon offsetting. A total of around 90,000 tonnes of CO2 will be captured over the initial project term of 30 years. The average age of the trees will increase from 65 to 75 years – removed trees are to be used primarily as timber for construction or furniture, so that the CO2 remains captured for as long as possible. The land for the forest planned by Munich Airport is provided by the Count Arco’sche Forest Administration. The airport will invest a total of around EUR 2.5 million in the climate forest project. Timber growth in the climate forest will be constantly monitored and calculated based on forest inventories carried out every ten years. The accumulation of CO2 in the Climate Forest will be calculated using an accounting tool from the German Forestry Council (DFWR), which was developed by the University of Göttingen together with the Johann Heinrich von Thünen Institute. The scientific oversight for the project is provided by the University of Freiburg. Munich Airport is also supported by the consulting firm ClimatePartner.

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