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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. - PowerPoint PPT Presentation

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  • Title 36pt GeorgiaSubtitle 24pt Georgia ItalicsPresentation InformationArial Narrow 24pt

    ICAO: Market-Based MeasuresTed Milczarek APEC Aviation Emissions Task ForceMeeting 2Singapore, 15-16 September 2009

  • Why market-based measuresGlobal aviation traffic is projected to grow on average at 5% per yearEfficiency gains of up to 2% per year from operational improvements and new aircraft technology Alternative low carbon or biofuels for aviation unlikely for many yearsAviation emissions expected to continue to grow at around 3% per year

  • Role of market-based measures

  • Types of MBM considered in ICAOEmissions related leviesFuel taxesChargesInternational versus individual leviesEmissions tradingClosed versus open schemesGlobal versus integration in national schemesMandatory versus voluntaryOther voluntary measuresVoluntary agreementsCarbon offsetting

  • Short history of MBM in ICAO1998 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 measures2001 Assembly endorsed development of an open emissions trading system for aviationstudy of ETS options undertaken by ICF Consultingconcurrent 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 aviation2007 Assembly debate around proposal to include international aviation in the EU ETSStates 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

  • MBM and GIACCMBM included in GIACC Terms of Reference as one of the elements to be addressedBasket of measures developed by GIACC includes a range of MBMGIACC established a Working Group to explore MBM optionsGIACC recommended a framework be developed for MBM for international aviation

  • MBM and ICAO HLMICAO Secretariat Working Paper/8 on ICAO public web site www.icao.int/Highlevel2009 responding to GIACC discussionsIndustry 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 ForceMBMTF established at 2007 CAEP meeting20-25 participants from States and organisationsFive deliverables by 2010 CAEP meetingUpdate Report on Voluntary Emissions TradingInitial report at www.icao.int/icao/en/env/vets_report.pdfExisting and possible voluntary ETS involving aviationStudy on linking open ETSs involving aviationLinking important in absence of a global systemVariety 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 airportstrading or offsetting could be most cost effective approach4.Offset measures as a further means of mitigating the effects of aviation emissions on climate changeAll aviation CO2 emissions offset at $6 per pax at $20/tonne Opportunities exist to encourage greater offsetting by pax5.Monitoring voluntary agreed measuresBetween industry and governments or regulatory authorityMeasures 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?