Meetings in Montreal this week have determined that the International Civil Aviation Organization (ICAO) Council will consider four market-based measures for aviation emissions reduction in November, Aviation Week has learned.
In an unexpected move to placate the EU, the Council also adopted the EU’s working paper on the efficacy of market-based measures, which calls for ICAO to accelerate the adoption of market-based measures, says a source present at the meeting in Montreal who was not authorized to speak on the record.
Argentina and Brazil raised objections to the adoption of the EU’s proposal, citing objections to the bloc’s emissions trading system (ETS). A group of other Council members, including the U.S., pushed the Council to add a non-discriminatory clause to ensure that any market-based measure apply to both developing and developed countries, several sources note.
The ICAO Ad Hoc Working Group on Market-Based Measures presented four framework proposals to the Council, with the final choice effective after 2020. The measures under consideration are: global mandatory offsetting; global offsetting that would include revenue generation through the sale of offsets; emission trading in a cap-and-trade system; and emissions trading through a baseline-and-credit model.
The Council considered collapsing the last two proposals into a single emissions-trading framework but a source present at the meeting says the Council opted to let the ad hoc group continue work on all four proposals.
Two issues remain to be determined, possibly in the November meeting, sources say. The first concentrates on how revenues raised through the sale of offsets or emissions-trading credits would be applied to greenhouse-gas mitigation, while the second addresses who would administer the program, with ICAO, member-state governments or airlines potential candidates.
ICAO Secretary General Raymond Benjamin earlier this year said the United Nations body would have concrete proposals for market-based emissions mitigation measures by year-end. However, even if the Council votes to endorse a proposed measure or measures in November, the full body must vote to adopt it at the next triennial meeting in 2013.
Late last year, a majority of the Council voted to object to the EU’s ETS, arguing then that ICAO, not the EU, had the sole authority to determine market-based measures for international aviation (Aviation Daily, November 8, 2011).