Title 36pt Georgia Subtitle 24pt Georgia Italics Presentation Information Arial Narrow 24pt ICAO: Market- Based Measures Ted Milczarek APEC Aviation Emissions Task Force Meeting 2 Singapore, 15-16 September 2009
Feb 01, 2016
Title 36pt GeorgiaSubtitle 24pt Georgia Italics
Presentation Information
Arial Narrow 24pt
ICAO: Market-Based Measures
Ted Milczarek APEC Aviation Emissions Task Force
Meeting 2Singapore, 15-16 September 2009
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
Role of market-based measures
MBM Start Year Base Year Target Year
Glo
bal I
nter
nati
onal
Avi
ation
CO 2 E
mis
sion
s
MBM
Projected emissions at current efficiency level
New aircraft technology and operational efficiency
Alternative fuels, investment in low emissions technology
Emissions Goal
MBM Start Year Base Year Target Year
Glo
bal I
nter
nati
onal
Avi
ation
CO 2 E
mis
sion
s
MBM
Projected emissions at current efficiency level
New aircraft technology and operational efficiency
Alternative fuels, investment in low emissions technology
Emissions Goal
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
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
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 State’s operators in ETS except on the basis of mutual agreement between States
GIACC tasked with developing program of action on emissions
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
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/8IATA
Aviation Global Deal (AGD)
ICAO seeking endorsement to develop a MBM framework before the 2010 Assembly
Market-Based Measures Task Force
MBMTF established at 2007 CAEP meeting20-25 participants from States and organisations
Five deliverables by 2010 CAEP meeting
1. Update Report on Voluntary Emissions TradingInitial report at www.icao.int/icao/en/env/vets_report.pdfExisting and possible voluntary ETS involving aviation
2. Study on linking open ETSs involving aviationLinking important in absence of a global system
Variety of ETSs being developed raises many challenges
MBMTF (cont.)3. Study on application of emissions trading and
offsets for local air quality in aviationfocus 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 measuresBetween industry and governments or regulatory authority
Measures to limit or reduce international aviation emissions
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?
THANK YOU