Market-Based Measures


A38 Resolution, CNG2020

The current main ICAO policy on aviation and climate change is Assembly Resolution A38-18, adopted by the 38th ICAO Assembly in October 2013. In that policy, the Organization is requested to undertake a series of actions to advance the understanding, quantification of impact, measures to mitigate and means to provide assistance to States in addressing CO2 emissions from international aviation. Under this Resolution, the ICAO Assembly resolved that ICAO and its Member States with relevant organizations would work together to strive to achieve a collective medium term global aspirational goal of keeping the global net CO2 emissions from international aviation from 2020 at the same level (carbon neutral growth from 2020, or CNG2020).

Global MBM Scheme as part of a Basket of Measures

The Assembly also defined a basket of measures designed to help achieve ICAO’s global aspirational goals. The basket of options available to States to address international aviation CO2 emissions encompasses technological, operational, and market–based measures.

On the latter, the Assembly unanimously decided that ICAO would develop a global MBM scheme for international aviation, and requested the Council to:

  • finalize the work on the technical aspects, environmental and economic impacts and modalities of the possible options for a global MBM scheme, including on its feasibility and practicability, taking into account the need for development of international aviation, the proposal of the aviation industry and other international developments, as appropriate, and      without prejudice to the negotiations under the UNFCCC;
  • organize seminars, workshops on a global scheme for international aviation participated by officials and experts of Member States as well as relevant organizations;
  • identify the major issues and problems, including for Member States, and make a commendation on a global MBM scheme that appropriately addresses them and key design       elements, including a means to take into account special circumstances and respective capabilities, and the mechanisms for the implementation of the scheme from 2020 as part of a basket of measures which also include technologies, operational improvements and sustainable alternative fuels to achieve ICAO’s global aspirational goals.

Establishment of Council EAG

Since the 38th Session of the Assembly, the Organization has actively engaged with its Member States and relevant international organizations in the development of a global MBM scheme. To this end, the ICAO Council established the Environment Advisory Group (EAG), composed of 17 Council Representatives, in March 2014. The EAG, under the direction of the Council, is to oversee all the work related to the development of a global MBM scheme and based on the results of its deliberations, to make recommendations to the Council.

Developments on technical recommendations and analytical support by CAEP GMTF

The EAG is supported on its technical and analytical work by the Global MBM Technical Task Force (GMTF) of the ICAO Committee on Aviation Environmental Protection (CAEP). The analyses requested by the EAG and the Council on the impacts of different approaches for designing a global MBM scheme have been undertaken by GMTF. In addition, work on monitoring, reporting and verification (MRV), eligible emissions unit criteria (EUC) and necessary emissions unit registries has been undertaken to make recommendations to the tenth meeting of the CAEP in February 2016.

COP21 outcome for international aviation

The UNFCCC COP21 meeting concluded with the adoption of Paris Agreement and associated decision text, which did not include any reference to international aviation. This means that ICAO Member States continue to work on the basis of ICAO agreed instruments, in particular ICAO Assembly Resolution A38-18. The fact that international aviation was not covered under the Paris Agreement can be considered to be a vote of confidence in the progress that ICAO and its Member States have achieved thus far, and the Paris Agreement provides the aviation community with further momentum toward success at the 39th ICAO Assembly.

Global Aviation Dialogues (GLADs)

As a means to ensure the full engagement of States and other stakeholders and widest possible range of inputs, ICAO  conduct Global Aviation Dialogues (GLADs). GLADs are the response to the 38th Assembly’s request to the Council to organize seminars and workshops on a global scheme for international aviation, bringing all States up to speed on the matter to allow for well-informed deliberations at the 39th Session of the ICAO Assembly in September 2016. The GLADs is also to outreach to those States that are not directly engaged in the Council, EAG or CAEP in order to facilitate information and engagement.

In April 2015, the first round of GLADs​ was held in 5 venues across the ICAO regions throughout April 2015. Total of 362 participants from 79 different States and 22 different International Organizations participated in the first round of GLADs. The format of the GLADs received positive feedback from the participants, and it was seen that GLADs supported engagement and active exchanges of views among participants.

The second round of GLADs will take place during the period from 20 March to 8 April 2016 in five venues across the ICAO regions.

High-level Meeting on Global MBM Scheme (11 to 13 May 2016 in Montreal)

A high-level meeting on a global MBM scheme will be held in May 2016 in Montreal. Purpose of the high-level meeting will be to have a high-level discussion on draft Assembly Resolution text on a global MBM scheme and make recommendations to the ICAO Council, in preparation for the 39th Session of the ICAO Assembly.

39th  ICAO Assembly (27 September to 7 October 2016 in Montreal)

The Council will report back to the 39th ICAO Assembly​ with a recommendation on a global MBM scheme for international aviation. The 191 ICAO Member States in the Assembly are then expected to make a decision on the global MBM, to be implemented from 2020 onwards.​

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