ICAO: Market-Based Measures
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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. Why market-based measures.

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Presentation Transcript

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

Why market based measures
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

Types of mbm considered in icao
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
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
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/8

    • IATA

    • Aviation Global Deal (AGD)

  • ICAO seeking endorsement to develop a MBM framework before the 2010 Assembly

Market based measures task force
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_report.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

Mbmtf cont
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

Issues for apec economies
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?