1. ECCP II and aviation: NGO perspectives Tim Johnson Aviation Environment Federation tim@aef.org.uk www.aef.org.uk European Climate Change Programme (ECCP II) Stakeholder Conference 24 October 2005, Brussels

2. Aviation & Climate Change: the Communication In advance of the Communication, the environmental NGOs called for: urgent action given the sector’s growing contribution to greenhouse gas emissions; regional action - little or no prospect for agreement on global instruments in the short- to medium-term; the development of a broad package of measures to tackle aviation’s climatic impact. Welcome the Communication and its acknowledgment of all these issues.

3. Aviation & Climate Change: the Communication As a first step, we welcome the Commission’s announcement to establish a working group to inform a proposal on how aviation could be included in the EU ETS. BUT … Including aviation in the ETS must not become an end in itself; Our support is heavily dependent on defining effective environmental and design criteria for aviation’s inclusion; We offer 7 policy tests or “golden rules” …

4. Policy Test 1 - Environmental objectives in line with current and future EU climate targets. - 8% below 1990 by 2010 (Kyoto) - 30% below 1990 by 2020 Implications for aviation’s inclusion in the ETS? May require other regulatory and fiscal instruments in parallel. Include emissions from international aviation in any post- 2012 international climate treaty framework.

5. Policy Test 2 - Should apply strong climate policies compared to “exposed sectors” sensitive to imports and relocation. Implications for aviation’s inclusion in the ETS? Well designed instruments that do not discriminate between carriers on the same routes, will not lead to significant economic distortions and do not significantly harm the competitiveness of EU airlines.

6. Policy Test 3 - Policy must address the full climate impact of aviation Implications for aviation’s inclusion in the ETS? Different policy instruments could address different impacts such as NOx or contrails. Such measures should be introduced in parallel to the ETS. If such a package cannot be delivered in parallel, environmental integrity could be ensured through the ETS by using multipliers on CO2 emissions.

7. Policy Test 4 - Policies should have the widest geographical scope possible Implications for aviation’s inclusion in the ETS? Include all flights to, from and between EU airports

8. Policy Test 5 - Full internalisation of climate costs based on the polluter- pays principle. Will strengthen incentives to invest in cleaner technology and to reduce emissions. Implications for aviation’s inclusion in the ETS? Preference for auctioning of permits or Use of other economic instruments in parallel

9. Policy Test 6 - Climate change policies should contribute to ending historic and obsolete tax privileges enjoyed by the aviation industry Implications for aviation’s inclusion in the ETS? ETS must be part of a package of measures; Welcome the Communication’s reiteration of its preference, as a matter of principle, to see aircraft fuel subject to energy taxes. Welcome long-term initiatives to make this possible.

10. Policy Test 7 - Climate change policies should aim to reduce the EU’s oil dependence Implications for aviation’s inclusion in the ETS? Design of instruments should maximise demand and supply opportunities to improve efficiency and reduce emissions