The U.N.’s International Civil Aviation Organization (ICAO) is working on international emissions standards. The secretary-general of ICAO, Raymond Benjamin, announced on June 18 that the organization plans to have a draft proposal by March 2013. Right now, the ICAO is studying four different options: two cap-and-trade systems, mandatory off-setting, and mandatory off-setting with potential revenue production.
It’s important for the ICAO to develop and implement international aviation emissions standards to fend off a brewing conflict over the EU’s greenhouse gas management system.
The EU instituted its Emissions Trading System (ETS) in 2005. Since Jan. 1 all domestic and international flights to, from, or between EU member states must comply with ETS. In this system, companies are allotted a specific number of CO2 allowances which can be bought, sold, or traded depending on a company’s need for them. For example, if an airline predicts it will exceed its allotted allowances, it can either take steps to reduce its emissions or purchase excess credits from another entity.
As you can imagine, several countries aren’t fans of the ETS. Non-EU countries believe the ETS infringes on their rights as sovereign nations. China and India refuse to share their emissions data or participate in the program.
This conflict has a negative effect on aviation in general. The EU has promised disciplinary measures against Chinese aircraft for non-compliance, and China announced it will implement countermeasures. As a result, China has suspended long-distance jet orders from Airbus that add up to about $14 billion.
There is a lot of optimism for growth in the aviation sector in the next 10 years; conflict over emissions isn’t doing anyone any favors. Will the ICAO’s efforts to create international standards be completed in time to diffuse the situation in European airspace?