Update on Market Based Measures as a Contriubution to the Impact of Aviation on Climate Change
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1 Bundesamt für Zivilluftfahrt BAZL Air Operators Conference May 2014 Update on Market Based Measures as a Contriubution to the Impact of Aviation on Climate Change Dr. Urs Ziegler, 8 May 2014
2 Market Based Measures for Aviation wrt Climate Change 1. Basics 2. International Goals wrt Aviation and Climate Change 3. Measures for Reduction of Impact of Aviation on Climate 4. Emissions Trading and other Market Based Measures 5. Actual Situation in the ICAO and the EU 6. Actual Situation in Switzerland 7. Conclusions 2
3 1. Basics Aviation is one out of many anthropogenic activities with impact on the global climate Share of aviation of global anthropogenic CO 2 - Emissions is in the order of 2-2.5% Total contribution of aviation to emissions with a warming effect is more than double of that of CO 2 alone (nitrous oxides, contrails, etc.) Growth rate of global international civil aviation will be approx. 4.5 % per annum until
4 2. Int. Goals wrt to Aviation and Climate Change Main goals of ICAO: (Resolution A38-18, 2013) : A global fuel efficiency improvement rate of 2 per cent per annum from 2021 to 2050, calculated on the basis of volume of fuel used per revenue tonne kilometre performed Keeping the global net carbon emissions from international aviation from 2020 at the same level (carbon neutral growth) Development of a global marktet based measure (decision 2016 / introduction 2020) 4
5 3. Measures for Reduction of Impact of Aviation on Climate Four Pillar Strategy: Technical development (more efficient airplanes, etc.) Infrastructure (ATM, etc.) Operations (more efficient operation of aeroplanes) Market based measures 5
6 3. Measures for Reduction of Impact of Aviation on Climate The role of market based measures: ca Mio. t Market based measures to fill the gap between the grwoing emissions and technological, infrastructural and operational improvements Quelle: IATA,
7 4. Emissions Trading and other Market Based Measures Reasons: The effect of CO 2 as a greenhouse gas on the global climate occurs independently from the location it is emitted > global climate change issue needs a global solution Market based measures are well suited for the solution of problems related to climate change An approach based upon emissions trading or offsetting, leads to the implementation of measures / actions where the biggest possible reduction is achieved at the least cost. 7
8 5. Actual Situation in the ICAO and the EU ICAO is discussing the use of market based measures in relation to climate change already more than 15 years Discussions stalled between 2004 and 2013 as most of the Contracting States were opposed to any kind of CO 2 - charging or taxation and because most of the developing countries wanted to be exempted from any kind of obligation Regional emissions trading schemes were seen as possible way forward EU integrated aviation into its ETS as of 2012 (with earlier obligations for operators) since there was no progress within ICAO 8
9 5. Actual Situation in the ICAO and the EU ICAO-Assemblies 2007 and 2013 urge States to only introduce such measures on the basis of mutual agreement Hence the unilateral inclusion of all flights between third countries and the EU was not accepted by many countries (esp. BRICs and USA). Stop the Clock : the EU exempts the application of its ETS to third country-flights for the year 2012 due to the strong international pressure. Flights between Switzerland and countries of the EU and the EEA are not exempted for the year
10 5. Actual Situation in the ICAO and the EU 38. ICAO Assembly (2013) decided the development of a global market based measure for international civil aviation It is planned to take a decision on type and structure of such a global measure at the 39 th Assembly in 2016 (ETS or offsetting scheme; recognition of CBDR, implementation, etc.) which should then be implemented in 2020 Industry supports a global measure as otherwise there would be a significant risk of an introduction of many local individual systems (patchwork of measures) 10
11 5. Actual Situation in the ICAO and the EU In April 2014 the EU Commission decided to adapt its ETS Aviation as a reaction to Assembly resolution A38-18 as follows: Stop the Clock is prolongued until 2016 Switzerland is exempted from all measures (is treated like all other third countries) Flights within EEA remain within the scope of the EU ETS Exemption of non commercial operators with emissions below 1000 t CO 2 Samll emitters tool applicable for operators with emissions of up to t CO 2 p/a 11
12 5. Actual Situation in the ICAO and the EU EU envisages to abandon the ETS Aviation upon the introduction of a global market based measure with sufficient aspiration (no doubling of measures) 12
13 6. Actual Situation in Switzerland Revised CO 2 -Act: International aviation to be included into Swiss climate change policy (message accompagnying revision of CO 2 - act) Integration of aviation into an ETS is preferred option Swiss ETS is too small for integration of Swiss aviation only a system which is linked to the EU ETS makes sense 13
14 7. Actual Situation in Switzerland Linking of the Swiss ETS with the EU ETS: Negotiations with EU on a linking of the two systems began in 2011 but have been suspended following the result of the referendum of 9 February 2014 a signing of a bilateral agreement in 2014 is in theory still possible depending on bilateral framework discussions between EU and Switzerland General rule: air traffic to and from Switzerland as well as within Switzerland to be subject to the same conditions as aviation of EU/EEA-countries. Common administration of both systems ( One Stop Shop for operators) 14
15 7. Actual Situation in Switzerland Problems / Uncertainties Bilateral relations with EU to be defined before ETS linking negotiations can resume Situation of EU ETS post 2016 remains unclear Risk of retaliatory measures if flights to and from third countries should be included into ETS 15
16 7. Conclusions Controversial views on the introduction of market based measures for interational aviation persist The introduction of a global market based measure based on the decision of the ICAO Assembly 2013 remains uncertain High probability that the EU ETS (aviation) will persist beyond 2020 integration of third country flights from 2017 remains an option Negotiations on linking of EU ETS with CH_ETS to be continued If linking of ETS s is not succesful, alternative measures to be evaluated 16
17 Thank you! 17
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