Designing the ICAO Global Market-Based Measures Scheme Air Transport Talanoa Pacific Islands Development Forum Thursday, 25 August, 2016 Sources: http://www.jetstar.com/au/en/about-us/community-and-environment/carbon-offset

ICAO OBLIGATIONS “ICAO and its Member States have been active in addressing CO2 emissions from international aviation, with collective global aspirational goals for the international aviation sector of improving fuel efficiency by 2 per cent per year and keeping its CO2 emissions from 2020 at the same level (carbon neutral growth from 2020).” – Executive Summary, (Submission by the International Civil Aviation Organization (ICAO)) Sources: www.icao.int/environmental-protection/Documents/STATEMENTS/SBSTA43 ICAO submission_Final.pdf

CARBON CALCULATION ICAO CARBON CALCULATOR THE SKY IS THE LIMIT ICAO has delivered a tool for calculation and self- reporting protocols for personal air travel emissions (for example, a Funafuti-Suva round trip flight detailed below): THE SKY IS THE LIMIT As of 2014 data sources, there are dozens of carbon market systems in operation globally as listed in Carbon Brief report linked below, with prices are hovering at a floor of around US$2 per tonne in the United States, up to over US$168 in Sweden. This reflects variation in national priorities and pricing which the aviation sector will soon be obligated to join. Emissions Trading System (ETS) or Carbon Tax ETS often refers to cap-and-trade systems, where emissions quotas are set, and may be traded at flexible prices according to different principles and structures on allocation of emissions amongst polluters, usually based upon market pricing. Carbon taxes involve regulated prices per ton of CO2 emitted, usually fixed by governments. Dep Airport Arr Airport Distance (KM) Aircraft Aircraft Fuel Burn/leg (KG)a Passenger CO2/pax/leg (KG) FUN SUV 1059.0 AT7 1702.7 75.0 Sources: 1. http://www.icao.int/environmental-protection/carbonoffset/Pages/default.aspx 2. https://www.carbonbrief.org/the-state-of-carbon-pricing-around-the-world-in-46-carbon-markets

CARBON OFFSET PROGRAMMES Sources: 1. http://www.slideshare.net/dickyedwin/green-aviation-through-carbon-offset-program s

CARBON OFFSET MARKET CLEAN DEVELOPMENT MECHANISM (CDM) Introduced under the United Nations Framework Convention on Climate Change (UNFCCC), one of the cornerstones of verifying additionality – reductions in addition to business-as-usual (BAU) activities, is obtaining validated baseline data for BAU activities and evaluating subsequent reductions. GREEN CLIMATE FUND (GCF) The Green Climate Fund has yet to fully codify it’s criteria for acceptable methodology to generate offset data through accepted projects. As it operationalizes and the first round of implementation begins, now is an appropriate time to establish Monitoring, Reporting and Verification (MRV) standards which allow the Pacific Island Countries to benefit in a more meaningful manner than under the CDM criteria. PIDF, USP, and IUCN have supported discussions for a regional MRV platform for offsets through development of the Pacific Environment & Climate Exchange (PECX) concept. REDD+ Representing efforts to reduce emissions from deforestation and forest degradation, REDD+ can provide a mechanism for halting deforestation and monitoring & evaluation protocols for validating carbon reserves maintained by the Pacific Island Countries, through which financial benefits may be gained from airline industry offset purchases in lieu of revenues from forestry resource extraction. In the Pacific, this has been led by GIZ’s Forestry Programme. Sources: 1. http://www.cdmpolicydialogue.org/research/1030_complementarities.pdf 2. http://dev.climatechangecapital.com/images/docs/publications/green-climate-fund.pdf 3. https://www.forestcarbonpartnership.org/what-redd

A PACIFIC PREMIUM OCEANIA – A REGION OF NET SEQUESTRATION Given the limited population of Pacific Island Countries relative to their Exclusive Economic Zones (EEZ), all nations are still in a position, given both marine resources and levels of terrestrial development, where they sit as potentially massive suppliers of offset credits under the market-based measures model suggested by ICAO. Any potential costs faced under the ICAO 2020 emissions resolution may be structured to confer much larger benefits to the Pacific than the relative costs to the various regional airlines. A CALL TO ACTION It is up to the Pacific Island Countries to collaborate on a meaningful addition to the development process of the ICAO MBM scheme between now and 2020 to ensure the ecosystem services provided by the nations of the Oceania region are appropriately measured, reported, and verified, and the airline industry appropriately compensates each nation for the offsets it provides. Voluntary participation may be committed alongside receipt of forthcoming gains. Sources: 1. http://centreforaviation.com/analysis/climate-is-existential---for-the-planet-and-air-travel-aviation-must-renew-its-licence-to-grow-272026

Thank you Andrew Irvin, Energy Programme Officer (andrew.irvin@iucn.org) International Union for Conservation of Nature, Oceania Regional Office p: +679-331-9084 f: +679-330-0128