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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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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
    • 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
    • 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?