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EU sees aviation deal as green light for emissions trading

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Published 11 October 2010, updated 14 December 2012

A deal struck by the International Civil Aviation Organisation (ICAO) on capping emissions from international aviation paves the way for swift inclusion of aviation in the EU's emissions trading scheme, the European Commission said on Saturday (9 October).

The 190 member states of the ICAO assembly adopted a resolution late on Friday (8 October) on capping emissions from international aviation as of 2020. The sector would also seek to become 2% more fuel efficient every year up to 2050.

The goals are, however, "aspirational" rather than binding on its member states.

The European Commission saw the deal as an endorsement of an EU decision in 2008 to include aviation in its emissions trading scheme (EU ETS) from 2012. Some US airlines have mounted a legal challenge to the EU's decision to incorporate all flights coming in and flying out of the EU into the ETS.

"Critically, the deal is a good basis for proceeding swiftly with the inclusion of aviation in the EU's emissions trading scheme from 2012 as foreseen by the EU legislation in force," said EU Climate Action Commissioner Connie Hedegaard.

The deal includes guiding principles for implementing market-based measures such as emissions trading. The Commission said the EU ETS is consistent with all of them.

"Crucially, ICAO has refrained from language which would make the application of the EU's ETS to their airlines dependent on the mutual agreement of other states," the Commission said. The EU agreed to "engage constructively" with third countries when implementing its ETS, particularly on dealing with incoming flights from outside the bloc, it added.

The deal follows nearly a decade of disagreements about how to cut emissions from international aviation. Currently, the sector accounts for some 2-3% of global greenhouse gas emissions, and its contribution is rising.

ICAO member states will have to submit action plans outlining measures to reach the goals. But countries where air traffic emissions fall below 1% would be exempt from this obligation and market-based measures.

The agreement comes ahead of the high-level climate conference in Mexico between 29 November and 11 December, when the members of the UN Framework Convention on Climate Change (UNFCCC) will seek to move the stalled negotiations towards an agreement on a new climate treaty.

"We feel that the Assembly resolution and related decisions are good examples of the spirit of cooperation that can make a substantial contribution to the UNFCCC discussions," said Roberto Kobeh González, ICAO Council president.

Positions: 

German MEP Peter Liese (European People's Party) said ICAO had once again failed to make any substantial progress towards cutting greenhouse gas emissions. He called for new approaches to reducing CO2 emissions given that the aviation industry had taken 13 years to negotiate while the sector's emissions had kept growing.

"I sincerely hope that we will be able to reach an ambitious global agreement in the scope of the United Nations Framework Convention on Climate Change (UNFCCC), and I will continue to work for a solution that includes aviation. Should states like China or India, who have been blocking negotiations in the past, be successful in blocking our aims on this level, we will have to try to expand our ETS bilaterally to other third countries," Liese argued.

The International Coordinating Council of Aerospace Industries Associations (ICCAIA) argued that the agreement marked a significant step towards a global strategy for addressing CO2 emissions from aviation.

"The aerospace manufacturing industry is committed to stepping up its efforts to deliver the breakthrough technologies which will further reduce the environmental impact of air transport," said François Gayet, secretary-general of the AeroSpace and Defence Industries Association of Europe, who chairs ICCAIA. "We call on governments to raise their level of support for research and development for new greener technologies. We also urge them to facilitate the deployment of more efficient air traffic management systems, such as SESAR in Europe and NextGen in the US."

Environmental groups argued that the EU's concession to engage constructively in discussion about exemptions for airlines from countries with low aviation emissions would undermine the effectiveness of the EU ETS. They pointed out that if the EU additionally went ahead with a plan to review whether emissions from inbound flights would be covered by the scheme, it could cut the emissions covered by the system by 40%.

"The EU has paid a heavy price to weaken opposition to its plan to include aviation in the ETS. It is obvious that additional measures will be needed to get spiralling aviation emissions growth under control. The EU should start with a kerosene tax and VAT on tickets," said Bill Hemmings of Transport & Environment (T&E).

"As a forum for agreeing, let alone implementing, global environmental targets for aviation emissions, ICAO is clearly not fit for purpose: its 13 year record of failure shows that. The fact that ICAO members repeated their calls this year for the institution to remain in charge looks absurd, and completely out of touch," he added.

Background: 

In an effort in tackle aviation's small but fast-growing contribution to climate change, the EU agreed in 2008 to include the sector in its emissions trading scheme (EU ETS). From 1 January 2012, the EU will set a cap on CO2 emissions for all planes arriving in or departing from the Union. 

The cap will first be set at 97% of average greenhouse gases emitted in 2004-2006 for the year 2012 and then lowered to 95%. Initially, 85% of emissions allowances will be allocated to airlines for free and only 15% auctioned off.

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