1. REDUCING EMISSIONS FROM AVIATION THROUGH CARBON-NEUTRAL GROWTH FROM 2020 A POSITION PAPER PRESENTED BY THE GLOBAL AVIATION INDUSTRY BASED ON A WORKING PAPER DEVELOPED FOR THE 38 TH ICAO ASSEMBLY IN SEPTEMBER 2013 Presenter Name, Title and Organisation Presentation to Name of conference Date, Location

2. OVERVIEW ▪Aviation industry has submitted a joint working paper to the 38 th ICAO Assembly »With full support from ACI (airports), CANSO (ANSPs), IATA (airlines), ICCAIA (manufacturers) and IBAC (business aviation) ▪Key request: that governments meeting at ICAO agree on a clearly defined process (roadmap) to develop a single global MBM, to be adopted by the next ICAO Assembly in 2016

3. AVIATION EMISSIONS

4. THE TARGETS

5. THE FOUR PILLARS 1 2 3 4

6. THE OVERVIEW

7. HISTORICAL CONTEXT Kyoto protocol in 1997 agrees for ‘developed’ States to address emissions from international aviation through ICAO. Since then, Parties meeting at the UNFCCC have been unable to reach agreement on how to deal with the mitigation of aviation emissions. In 1996 and in 2004, ICAO explored various MBM options for aviation. In 2009, ICAO set up a Group on International Aviation and Climate Change (GIACC) to explore new options, including carbon offsets and trading In 2010, at the 37 th ICAO Assembly, agreement was reached on a set of targets, including CNG2020 From 2010 to 2013, ICAO and member states have been analyzing and narrowing down options for a global MBM for aviation. In September 2013, the 38 th ICAO Assembly will decide a way forward on the issue. In 2008, industry leaders sign a declaration outlining the four-pillar strategy. In 2009, the industry agrees world-first sector-wide CO2 reduction targets. In 2013, the industry agrees principles for operationalizing CNG2020.

8. MARKET-BASED MEASURES ▪ICAO has a shortlist of three options for a global MBM: ▪Industry believes that a global carbon offsetting mechanism is the quickest, easiest and most cost-efficient solution 1 Global carbon offsetting 2 Global carbon offsetting + additional revenue component 3 Global emissions trading scheme

9. AIRLINE RESOLUTION ▪18-month process involving airlines worldwide ▪Key considerations: »Early movers – how to reward airlines that upgraded fleets just before the MBM comes in? »Fast growth – how to adjust for airlines in parts of the world where there is fast economic growth? »New entrants – how to treat new airlines that start flying after the MBM is put in place? ▪Resolution overwhelmingly adopted by the IATA AGM on 3 June 2013 in Cape Town, followed by ACI resolution, CANSO and IBAC statements

10. INDUSTRY POSITION ▪Industry recommends to the 38 th ICAO Assembly: »a single global market-based measure for aviation; »a simple offsetting scheme as the easiest and fastest to implement; »agree a roadmap for developing a global MBM to be adopted at the next Assembly in 2016; »agree the principles of developing a global MBM; »develop an ICAO standard on MRV; and »develop a mechanism to define the quality of the offsets that could be used under a global MBM.

11. be cost-efficient and preserve fair competition be easy to implement and administer maximize environmental integrity not be designed to raise general revenues or suppress demand PRINCIPLES FOR A GLOBAL MBM ▪Any global market-based measure for aviation should: be considered as part of a broader set of measures consider SCRC, while ensuring equal treatment of operators

12. INDUSTRY POSITION: ROADMAP 38 th ICAO Assembly 2013 Develop ICAO Standard on monitoring, reporting and verification (MRV) Define mechanism to decide on acceptable types of verified carbon credits 39 th ICAO Assembly 2016 Agree responsibilities, application and accounting rules (incl. no duplication) Proposal COP/19 2013 COP/21 2015 COP/20 2014

13. INDIVIDUAL RESPONSIBILITIES ▪In defining equitable responsibilities for operators, governments are asked to consider the following principles: »Collective industry baseline at 2018 – 2020 average »Operator baseline at 2018 – 2020 average »New entrant provision »Individual responsibility based on combination of total emissions share and own emissions growth post-2020 »Adjustments for fast-growing operators »Adjustments for “early movers” »Data integrity through common MRV standard »Periodic system quality review cycle

14. GLOBAL AGREEMENT ▪Agreement at the 38 th Assembly will benefit everyone: »It creates regulatory stability and predictability, stimulating investment in effective CO 2 measures »It allows for sustainable growth of aviation, generating socio- economic benefits »It promotes the principle of equal opportunities, protecting growth aspirations in all regions »It promotes ICAO objectives and affirms its leadership »It supports UN climate negotiations

15. POSITION COORDINATED BY: A copy of the position paper can be downloaded at: www.atag.org (click the orange box on the home page)