Strategic Objective C1 – Environmental Protection

An assessment on the feasibility of a global MBM scheme was undertaken in 2013 on the most practical and effective design features for a global scheme, taking into consideration the direction from the High-level Group on International Aviation and Climate Change (HGCC), which met three times from December 2012 to March 2013 and considered various issues related to a global MBM scheme, including: participants in a scheme; means to accommodate special circumstances and respective capabilities; and generation of revenue from a scheme.

The quantitative analysis on the impacts of a global MBM scheme completed in 2012 was further refined using updated forecasts on traffic, fleet and emissions that were completed by CAEP in 2013. This supplementary study confirmed the conclusion of the Council in November 2012 regarding the technical feasibility of the three options for a global MBM scheme. A compilation of the results of the study were published in ICAO Doc 10018 Report of the Assessment of Market-based Measures released in September 2013 prior to the 38th Session of the Assembly.

At the Assembly, following a long and difficult debate between Member States who held a wide range of divergent views, it was agreed by consensus to develop a global MBM scheme for international aviation. This decision reflects the strong support of ICAO Member States for a global solution in the international aviation sector, as opposed to a possible patchwork of different measures.

The Assembly agreed that the Council, with support of Member States, would make a recommendation on a global MBM scheme that addresses key design elements, including a means to take into account the special circumstances and respective capabilities of States, and the mechanisms for implementing the scheme from 2020, for decision by the 39th Session of the Assembly in 2016.

The CAEP Steering Group agreed unanimously to support technical work on market-based measures, specifically on the quality and integrity of offsets that could be used for international aviation and on the methods to monitor, report and verify emissions from international aviation.

Agreements were also reached with experts in the carbon market and at the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat for support in the development of the global MBM scheme.