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You are here: Home » Publications » CEO Brief » CEO Brief November 2012 » Environment Updates

Environment

EU Emissions Trading Scheme

On 12 November, the EC announced its intention to suspend the imposition of the EU ETS on flights to and from non-EU countries.

While details of how the pause in application of the EU ETS will be administered remain to be clarified, this creates an opportunity for the international community and governments to make progress towards a global solution for carbon emissions under ICAO.

However, it does not take the pressure off the industry to continue working on options to implement CNG2020, as this target remains at the heart of the ICAO current negotiations.

ICAO Developments

IATA has been actively participating in a specially appointed group of experts to support the ongoing ICAO work on Market-Based-Measures (MBMs).

Three options for a single global mechanism are being developed:

  • A global mandatory offsetting scheme
  • A global mandatory offsetting scheme with additional revenues
  • A global cap and emissions trading scheme

The work is advancing well but becoming more complex as the group gets into the details. Progress on developing a broader framework to guide States wishing to implement their own MBMs is much slower and highly political.

The ICAO Council has now agreed to establish a high level political process to run from December through to the Assembly next year in order to try to resolve some of the fundamental policy issues in addressing aviation emissions. This will cover all aspects of the IATA 4-pillar strategy, as well as driving the MBMs agenda forward.

IATA Developments

In parallel, IATA’s Climate Change Task Force (CCTF) has advanced its work on options on how to implement industry’s CNG2020 and 4-pillar strategy, to address the issues of recognizing early action by airlines, allocating individual airline responsibilities and alleviating the impact of CNG2020 on fast growth markets and the airlines operating in them.

An update will be presented to the Board in December and final recommendations in June. Achieving internal industry unity on an approach to implementing CNG2020 is vital to prepare for the upcoming ICAO negotiations and will require understanding and compromise on all sides. Any agreed approach will also have to be developed into a full negotiating strategy to protect the interests of the industry in the political process.

At the meeting of the IATA ENCOM/15 in Amman last October, support was also expressed for the CCTF work in addition to addressing a number of new items, such as the work of a newly formed ENCOM Task Force on airline fuel reporting and emerging issues surrounding the transportation of unsustain-able cargo.

Green Climate Fund

IATA continues to monitor developments at the Green Climate Fund that has been established by the UNFCCC to try to find funds to address climate change in developing countries. The Fund will be hosted by South Korea and is seeking to raise US$100Bn per annum by 2020.

Aviation and Maritime have historically been suggested as sources of funding. IATA continues to actively lobby against these suggestions.

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