November 08, 2010 10:37 ET

New Regulations to Drive Investment in Green Aviation Technologies

ROCKVILLE, MD--(Marketwire - November 8, 2010) - has announced the addition of GBI Research's new report "Green Aviation Market to 2020 - Stringent Regulations to Drive Investment in Green Technologies" to their collection of Manufacturing market reports. For more information, visit

The global aviation industry annually contributes around 2-3% of total worldwide anthropogenic carbon dioxide emissions. Though the emissions from the aviation industry currently account for a small part of total man-made emissions, the escalating demand for the aviation industry will be a major reason for increased emissions. Furthermore, the growth in air traffic over the last couple of decades has outweighed the contribution of significant improvements in aircraft technology and aircraft operations.

GBI Research believes that in the years ahead, the aviation industry will turn to green technologies in order to develop business-led solution to address climate change. Tightening regulations on the aviation industry to curb its emissions will drive the green aviation technology market in general and the aviation biofuels and fuel cells market in particular. GBI Research anticipates the green aviation market will reach $412.1 billion in 2020 from $80m in 2009.

Air transport demand will follow economic recovery, thus, the global economic recovery is expected to create a robust growth in the demand for air travel. There is a marked correlation between economic growth and air travel as economic growth influences the demand for air transportation. Industry experts are of the view that for every 1% increase in global economic growth, there is a 2.5-3% increase in global air traffic. However, there is growing concern regarding the effects of aircraft emissions on the environment.

Fortunately, there is common vision among industry stakeholders in reducing the impact of aviation on climate change -- measures for development and implementation of new and sustainable energy source for aviation worldwide and producing innovative aircraft design and materials are the most likely outcomes.

Due to the rising level of emissions from the aviation industry, several initiatives are being implemented at global and local levels. One such initiative taken by the US Environmental Protection Agency (EPA) mandates a minimum volume of renewable-source fuel in transportation fuels. The EPA is responsible for the development and implementation of regulations which are related to transportation fuel sold in the US. The new regulations ensure that transportation fuel contains a minimum volume of renewable fuel.

This standard was developed in collaboration with many key stakeholders in the fuel industry, which includes refiners and renewable fuel producers. The Renewable Fuel Standard (RFS) program regulations, as they're known, were created under the Energy Policy Act (EP Act) of 2005. The RFS program was first to create a renewable fuel mandate in United States. Under the original RFS program, the EPA required 7.5 billion gallons of renewable fuel to be blended into gasoline by 2012. The figure below shows the new renewable fuel standard indicating the growing importance of renewable fuels in the US.

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