1. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 1 Providing employment, trade links, tourism and support for sustainable development through air travel 26 February 2013 GreenerSkies Hong Kong Paul Steele

2. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 2 AVIATION: ENVIRONMENTAL RESPONSIBILITY $

3. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 3 AVIATION: EMISSIONS CHALLENGE Emissions from aviation, and forecast

4. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 4 OUR CLIMATE ACTION Targets are at the global level – not on States or operators and targets do not mean slowing down the growth of aviation

5. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 5 AVIATION: IMPRESSIVE PROGRESS SO FAR CO2 from commercial airline fuel burn, emissions and efficiency

6. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 6 1 2 3 4 THE FOUR PILLARS

7. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 7 OUR CLIMATE ACTION

8. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 8 EUROPEAN EMISSIONS TRADING SCHEME

9. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 9 AVOIDING THE PATCHWORK

10. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 10 PATCHWORKS LEAD TO PAPERWORK 40+ countries with emissions-related economic measures ETS, carbon and fuel taxes Over $7bn per year currently Each regime has its own reporting standards

11. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 11 ICAO IN THE SPOTLIGHT 2010 37 th Assembly Resolution CO2 Standard for new aircraft Goals development Framework for Market-Based- Measures (MBMs) Proposals for single global MBM mechanism

12. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 12 THE THREE OPTIONS ICAO is considering three options for a single global mechanism 1 Mandatory offsetting 2 + additional revenues 3 Global emissions trading scheme

13. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 13 THE KEY POLITICAL ISSUES Framework issues: Scope of coverage: Operators registered in a state Departing flights from a state Flights within sovereign airspace Flights within FIRs Mutual consent or not Treatment of developing countries CBDR/SCRC Legal form of framework? Application of MBMs to international aviation

14. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 14 INDUSTRY VIEW Key criteria for the industry

15. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 15 FINDING THE RIGHT SOLUTION An aviation solution to a climate problem… not a climate solution to an aviation problem.

16. © ATAG 2013 WWW.AVIATIONBENEFITSBEYONDBORDERS.ORG 16