McGill/ICAO Pre-Assembly Conference, Montreal, 26-27 September 2010 Protection of the Environment: Legal & Policy Solutions A role for market-based measures Tim Johnson Director, Aviation Environment.

Report
McGill/ICAO Pre-Assembly Conference, Montreal, 26-27 September 2010
Protection of the Environment:
Legal & Policy Solutions
A role for market-based measures
Tim Johnson
Director, Aviation Environment Federation
on behalf of the
International Coalition for Sustainable Aviation (ICSA)
Why consider market-based measures (MBMs)?
MBMs are consistent with the objective of fully internalising
the costs of environmental externalities (the cost is met by
the emitter rather than by society).
MBMs can be complimentary to technological and
operational improvements by:
- sending a price signal to further improve efficiencies and
influence behaviour;
- providing flexibility to achieve targets;
- providing confidence in meeting targets, and;
- raising awareness with public.
Support for a global trading scheme
ICSA continues to support a global emissions trading
scheme for the aviation sector.
ICAO has already undertaken studies on this topic, and the
37th Session of the Assembly presents an important
opportunity to take the next step by committing to the
delivery of a framework for MBMs.
Trend towards increased taxation
Absence of duty on fuel for international aviation is an
implied subsidy (as noted by IPCC, IMF, the Stern Report);
Lightly taxed compared to other sectors?
This absence is very “visible” to the public / politicians,
especially post-recession;
Administratively simple and can be introduced quickly;
Relatively low transaction costs, often collected through
existing sales systems.
Aviation as a source of climate finance?
High-level Advisory Group on Climate Finance (AGF) looking
at ways to raise $100 billion annually to help developing
countries with adaptation costs. Trading? Fuel taxes?
Tickets tax?
Began at COP 14 with a proposal from the Maldives, on
behalf of the LDCs, for a levy to raise money for adaptation:
$6 on an economy class ticket
$62 for premium class ticket
Could raise $8-10 Billion annually
Levy proposed at a level that would not affect demand
significantly and therefore have minimal tourism impact.
“+” – funds for developing countries, hypothecated
“-” - it is not a strategy to reduce aviation emissions.
An opportunity for the 37th Assembly
There is a strong environmental and economic rationale for
using MBMs and levies in particular.
The continued absence of a global ICAO framework for
MBMs and targets, and the subsequent introduction of a
global measure, maintains the rationale for individual states
(or groups of states) to act.
ICAO has an important leadership role, but it is not the only
actor: failure at this Assembly, will continue to make aviation
an easy target, potentially leading to multiple national
schemes with different compliance regimes and costs.
Thank you ....
[email protected]
www.icsa-aviation.org

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