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Title: P1258785051eiJNh
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ICAO Market-Based Measures Ted Milczarek
APEC Aviation Emissions Task Force Meeting
2 Singapore, 15-16 September 2009
Title 36pt Georgia Subtitle 24pt Georgia Italics
Presentation Information Arial Narrow 24pt
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Why market-based measures
- Global aviation traffic is projected to grow on
average at 5 per year - Efficiency gains of up to 2 per year from
operational improvements and new aircraft
technology - Alternative low carbon or biofuels for aviation
unlikely for many years - Aviation emissions expected to continue to grow
at around 3 per year
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Role of market-based measures
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Types of MBM considered in ICAO
- Emissions related levies
- Fuel taxes
- Charges
- International versus individual levies
- Emissions trading
- Closed versus open schemes
- Global versus integration in national schemes
- Mandatory versus voluntary
- Other voluntary measures
- Voluntary agreements
- Carbon offsetting
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Short history of MBM in ICAO
- 1998 Assembly was first to direct a study of
policy options to limit or reduce aviation GHG - three CO2 emissions reduction targets for 2010
- examination of emissions related levies,
emissions trading, voluntary measures - 2001 Assembly endorsed development of an open
emissions trading system for aviation - study of ETS options undertaken by ICF Consulting
- concurrent work on emissions levies and voluntary
agreements
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Short history of MBM (cont.)
- 2004 Assembly moves away from a global open ETS
for international aviation - guidance on inclusion of international aviation
in national or regional emissions trading scheme - report on voluntary emissions trading for
aviation - 2007 Assembly debate around proposal to include
international aviation in the EU ETS - States urged not to include other States
operators in ETS except on the basis of mutual
agreement between States - GIACC tasked with developing program of action on
emissions
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MBM and GIACC
- MBM included in GIACC Terms of Reference as one
of the elements to be addressed - Basket of measures developed by GIACC includes a
range of MBM - GIACC established a Working Group to explore MBM
options - GIACC recommended a framework be developed for
MBM for international aviation
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MBM and ICAO HLM
- ICAO Secretariat Working Paper/8 on ICAO public
web site www.icao.int/Highlevel2009 - responding to GIACC discussions
- Industry proposals outlined in WP/8
- IATA
- Aviation Global Deal (AGD)
- ICAO seeking endorsement to develop a MBM
framework before the 2010 Assembly
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Market-Based Measures Task Force
- MBMTF established at 2007 CAEP meeting
- 20-25 participants from States and organisations
- Five deliverables by 2010 CAEP meeting
- Update Report on Voluntary Emissions Trading
- Initial report at www.icao.int/icao/en/env/vets_re
port.pdf - Existing and possible voluntary ETS involving
aviation - Study on linking open ETSs involving aviation
- Linking important in absence of a global system
- Variety of ETSs being developed raises many
challenges
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MBMTF (cont.)
- 3. Study on application of emissions trading and
offsets for local air quality in aviation - focus on ambient air quality around airports
- trading or offsetting could be most cost
effective approach - 4. Offset measures as a further means of
mitigating the effects of aviation emissions on
climate change - All aviation CO2 emissions offset at 6 per pax
at 20/tonne - Opportunities exist to encourage greater
offsetting by pax - 5. Monitoring voluntary agreed measures
- Between industry and governments or regulatory
authority - Measures to limit or reduce international
aviation emissions
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Issues for APEC economies
- Will MBM be part of emissions strategies?
- What support for MBM at ICAO HLM?
- What role for MBM in UNFCCC COP/15 discussions
in Copenhagen? - What response to European plans to include
international aviation in EU ETS from 2012?
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- THANK YOU
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