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McGill/ICAO Pre-Assembly Conference, Montreal, 26-27 September 2010

McGill/ICAO Pre-Assembly Conference, Montreal, 26-27 September 2010. Protection of the Environment: Legal & Policy Solutions A role for market-based measures Ti m Johnson Director, Aviation Environment Federation on behalf of the International Coalition for Sustainable Aviation (ICSA).

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McGill/ICAO Pre-Assembly Conference, Montreal, 26-27 September 2010

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  1. McGill/ICAO Pre-Assembly Conference, Montreal, 26-27 September 2010 Protection of the Environment:Legal & Policy SolutionsA role for market-based measuresTim JohnsonDirector, Aviation Environment Federationon behalf of theInternational Coalition for Sustainable Aviation (ICSA)

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. Thank you .... tim@aef.org.ukwww.icsa-aviation.org

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