An emissions-trading system is a system whereby the total amount of emissions is capped and allowances, in the form of permits to emit CO2, can be bought and sold to meet emission reduction objectives. Such a system could serve as a cost-effective measure to limit or reduce CO2) emitted by civil aviation in the long term, provided that it is open to all economic sectors.
The advantage of an emissions trading system is that it permits compliance flexibility, allowing each source to make a tailored choice in order to meet the target limit for emissions. This is critical, as incremental clean-up-costs of emissions control vary sufficiently across regulated entities. As a result, incorporating an emissions-trading system into an environmental policy could imply that the same level of environmental protection would be achieved at a lower overall cost. Aviation in particular would be expected to be a net buyer of emissions instruments.
This site provides basic information on the overall concept of emissions trading with links to useful reference material that addresses the issue from a historical perspective and provides practical guidance.
ICAO has adopted two approaches to address the problem of emissions:
Background information on trading:
Links and Material to Voluntary ETS Schemes Identified in the ETTF VETS Voluntary Emissions Trading Schemes) Report
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