Kroll Bond Rating Agency (KBRA) has announced the publication of a research report discussing rising climate change risk in the global aviation industry and its potential impact on credit, the company said.
Air transport is a vital feature of the global economy, connecting people and businesses across the world. The aviation industry supports over 65 million jobs and contributes USD 2.7 trillion in global economic activity. There are clear social and economic benefits to air travel, but the environmental risks associated with the aviation industry are mounting. As the consequences of climate change grow more extreme, the global aviation industry is working toward better fuel efficiency and more sustainable technologies to reduce its carbon footprint.
KBRA actively covers the global aviation sector and monitors the scope of aviation´s carbon emissions as it relates to possible impacts on credit. This report details the credit implications due to growing climate change risks, as well as the current state of carbon emissions and projections for future growth. However, trends in aviation´s carbon footprint will depend on global emissions regulations, emitters´ own efforts in curbing emissions, as well as technological development within the industry. Therefore, KBRA´s approach may evolve given the uncertainties around rising carbon emissions as well as the efforts to limit them.
KBRA is a full-service credit rating agency registered with the US Securities and Exchange Commission as an NRSRO. In addition, KBRA is a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.