.Market-Based Measures

Market-Based Measures is emissions trading, emission related levies-charges and taxes, and emissions offsetting, all of which aim to contribute to the achievement of specific environmental goals, at a lower cost, and in a more flexible manner, than traditional command and control regulatory measures. Market-based measures are among the elements of a comprehensive mitigation strategy to address greenhouse gas (GHG) emissions from international aviation that are being considered by ICAO.

The investigation of market-based measures (MBMs)as a potential option for international aviation began in the late 1990s through ICAO’s committee on Aviation and Environmental protection (CAEP)

In 2010 , ICAO Assembly Resolution A37-19 adopted guiding principles for the design and implementation of MBMs. Here are some:

-MBMs should support sustainable development of the international aviation sector.

-MBMs should support the mitigation of GHG emissions from   international Aviation.

-MBMs should contribute towards achieving global   aspiration goals

-MBMs should minimize carbon leakage and market distortions.

-MBMs should be assessed in relation to various measures on the basis of performance measured in terms of co2, emissions reductions or avoidance where appropriate.

And finally, economic instruments such as MBMs provide “financial incentives to guide behavior towards environmentally responsible activity” for ex; on MBM that places a price on carbon  ,encourages further efficiency improvements and the adoption of new technologies.

UNDERSTANDING THE IMPORTANCE OF CARBON MARKETS TO INTERNATIONAL AVIATION

To understand the trends in the development of carbon markets and to identify implications for international aviation   , ICAO has been monitoring MBMs globally. Lessons from the development of MBMs such as Kyoto mechanism, have provided useful information on how the market has responded to new mechanisms, policies and regulations

Under the Kyoto protocol, clean development mechanism (CDM)

Carbon credits, now as certified emission. Reductions (CERs), may be issued to approved projects in developing countries for emissions reductions achieved.

POTENTIAL IMPACTS OF MARKET-BASED MEASURES ON INTERNATIONAL AVIATION

Under the policy framework adopted by the international civil aviation organization(ICAO) in 2010 (assembly resolution A37-19),market –based measures(MBMs)are included in a ‘’Basket of measures” that member states can use to address co2 emissions produced by international aviation. to better understand and assess these measures ICAO’s committee on aviation environment protection (CAEP) performed on economic analysis of various and research were performed by CAEP, and several ICAO documents have been published on the subject since 2007.

ASSESSING THE IMPACTS OF MBMs

The first study, in which the three MBM options were analyzed   ,is referred to as the core study and was quantitative and qualitative .in the quantitative assessment, impacts at a global level and on developing countries were assed. In the qualitative assessment   ,the main design features were identified for each of the three MBM options. this evaluation helped identify the main differences between MBM options and highlight the differences in the administrative complexity of these options.

GLOBAL MBM OPTIONS FOR INTERNATIONAL AVIATION

GLOBAL MANDATORY OFFSETTING

Offsetting operates throught the creation of emissions units which quantify the reductions achieved. These emissions units, which  would generally be created outside the international aviation sector. Can be bought ,sold or traded.

A global mandatory offsetting scheme for international aviation would require participants to acquire emissions units to offset co2 above on agreed eligibility criteria to ensure adequacy of emissions reductions, no specific aviation allowances or revenues would be created under this scheme.

GLOBAL MONDATORY OFFSETTING WITH REVENUE

Global mandatory offsetting complemented by a revenue generation mechanism would generally function the some way as the mandatory offsetting, revenue would be generated by applying a fee to each tone of revenue would be used for agreed purposes ,such as climate change mitigation or providing support to developing states to reduce GHG emissions.

GLOBAL EMISSIONS TRADING

 The global emissions trading scheme (ETs) would use a cap-and-trade approach where total international aviation emissions are copped at on agreed level for a specified compliance period. Specific aviation allowances (one allowance is equivalent to one tone of co2) would be created under this scheme for all the emissions under the cop within the international aviation sector .these allowances would then be distributed for free or auctioned, to participants using on greed method.

At the end of each compliance period, participants would need to surrender allowances, or other emission units, equal to the emission generated during that period. Including those above their allocation

COUNCIL-197^TH SESSION-SIXTH MEETING

(9 NOVEMBER 2012)

COUNCIL DECISION-C-DEC 197/6

Overall, the qualitative and quantitative assessments of the three options for a global MBM scheme demonstrated that they were technically feasible and have the capacity to contribute to achieving ICAO’s environmental goals

‘’ recognized that the results of the qualitative and quantitative analysis of the three options for a global MBM scheme evaluated by the secretariat with the support of the Experts demonstrated that all three options were technically feasible and had the capacity to contribute to achieving ICAO’s environmental goals”

IATA AGREEMENT ON   CARBON NEUTRAL GROWTH

The international air transport association (IATA) represents 240 airlines that carry over 84% of global air traffic, in June 2013, IATA over whelming endorsed a resolution on the’ ’implementation of the aviation carbon-neutral growth(CNG 2020)strategy’’ .member airlines agreed that a single global mandatory carbon offsetting scheme would be the simplest and most and most effective option for on MBM designed to address climate change .the resolution provides governments with a set of principles on how governments could:

-Establist procedures for a single market-based measure(MBM)

-integrate a single MBM as part of on overall package of measures to achieve CNG202O.

Airlines are committed to working with governments to build a solid platform for the future sustainable development of aistion. Today they have come together to recommend to governments the adoption of a dingle MBM for aviation and provide suggestions on how it might be applied to individual carriers .now the ball is in the court of governments, we will be strongly, supporting their leadership as they seek a global agreement through the international civil aviation organization(ICAO)

Aviation is the first industry to suggest a global approach to the application of a single MBM to manage it’s climate. change  impact .this keeps aviation in the forefront of industries  on managing carbon emissions, it was also the first to agree global forgets .these are improving fuel efficient by 15% annually to 2020,capping net emissions with CNG2020, and cutting emissions in half by 2050 compared to 2005 and it was also the first to agree on global strategy to achieve them. A summary of the principles of the resolution includes the following:

.setting the industry and individual carrier baselines using the overage annual total emission over the period 2018-2020

.Agreeing to provision adjustments for

-recognizing early   movers  ,benchmarked for 2005-2020 with a sunset by 2025

-accommodating new market entrants for   their initial years of operation

-fast growing carriers

.adopting    on equitable balance  for determining individual carrier responsibilities.

                                            VENTED FUEL
                                      ADMINISTRATION
- The provision of this part shall apply to all turbine engine powered aircraft intended for operation in international air navigation manufactured after 18 February 1982.
-The document attesting certification relating to fuel venting may take the form of a separate fuel venting certification or a suitable statement contained in another document approved by the certification authority.
-Contracting states shall recognize as valid a certification relating to fuel venting granted by the certificating authority of another contrasting state provided the requirement.
                       PREVENTION OF INTENTION FUEL VENTING
Aircraft shall be so designed and constructed as to prevent the intention discharge into the atmosphere of liquid fuel from the fuel nozzle manifolds resulting from the process of engine shutdown following normal flight or ground operations.