What is a “market-based measure (MBM)”? A market-based measure (MBM) is a policy tool that is designed to achieve environmental goals at a lower cost and in a more flexible manner than traditional regulatory measures. Examples of MBMs include levies, emissions trading systems, and carbon offsetting. What was the request from the 2013 ICAO Assembly on a global MBM scheme? Under Resolution A38-18, paragraph 19, the ICAO Assembly requested the Council, with the support of ICAO Member States, to conduct work and report its results, for decision at the 39th session of the ICAO Assembly (27 September to 7 October 2016). Within this mandate, the Council is requested to:a) 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;
b) organize seminars, workshops on a global scheme for international aviation participated by officials and experts of Member States as well as relevant organizations;
c) identify the major issues and problems, including for Member States, and make a recommendation 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.What was the process and actions taken since the 2013 ICAO Assembly to develop a global MBM scheme? Since the 2013 Assembly, the ICAO Council has established the Environment Advisory Group (EAG), which was composed of 17 Council Representatives and representatives from IATA. The EAG, under the direction of the Council, was mandated to oversee all the work related to the development of a global MBM scheme and make recommendations to the Council. The EAG pursued progress, starting with a "Strawman" approach, in which a basic proposal for a global offsetting scheme was tabled with a view to generating discussion and analyses for improvements.The EAG met 15 times in total from March 2014 to January 2016, and was supported in its technical and analytical work by the Council's Committee on Aviation Environmental Protection (CAEP). A series of analyses requested by the EAG and the Council were undertaken by CAEP, including:
Volumes of future CO2 emissions from international aviation and overall cost impacts to achieve the carbon neutral growth from 2020;Cost impacts of using different combinations for individual operator's growth factor and the international aviation sector's growth factor; Various approaches for distribution of offsetting requirements to individual aircraft operators (e.g., route-based approach, accumulative approach, and comparison of these approaches); andAdjustments of offsetting requirements, technical exemptions and exemptions of routes to/from low emitting States.In addition, work on technical aspects of the global MBM scheme (e.g. monitoring, reporting and verification (MRV); emissions units criteria (EUC) and registries) was also undertaken by CAEP, in support of the discussion by the EAG and Council.The EAG/15 meeting in January 2016 considered a draft Assembly Resolution text on a global MBM scheme, which was developed by taking into account the progress achieved and views expressed during previous EAG deliberations.
The EAG/15 meeting recommended, and the Council endorsed, that a High-level Group on a Global MBM Scheme (HLG-GMBM) be established to facilitate the convergence of views in order to finalize draft Assembly Resolution text on a global MBM scheme, for consideration by the Council. The HLG-GMBM was composed of 18 high-level aviation and/or transport representatives, and met twice (24 to 25 February and 13 to 15 April 2016) and made progress in improving and clarifying a number of provisions in the draft Assembly Resolution text.Based on the results of the HLG-GMBM, the Council in April 2016 decided on the draft Assembly Resolution text on a global MBM scheme, to be presented for consideration of the High-level Meeting on a Global MBM Scheme (HLM-GMBM) held at ICAO Headquarters in Montréal, Canada from 11 to 13 May 2016.The High-level Meeting focused on deliberations on draft Assembly Resolution text on a global MBM scheme and clarified and improved a number of provisions in the draft text, while it recognized a number of concerns and possible alternative approaches and ideas, in particular for paragraphs related to phased implementation and distribution of offsetting requirements. The Meeting encouraged Member States to continue bilateral and multilateral consultations to bridge their views and find possible compromise text.The Friends of the President Informal Group Meeting was convened in Montréal, Canada from 22 to 23 August 2016 to consider the results of the bilateral and multilateral consultations by Member States related to the draft Assembly Resolution text, with a view to developing compromise text for consideration by the Council. Based on the outcome of bilateral and multilateral consultations that had taken place prior to the meeting, a new approach for the phased implementation was presented and well-received by the meeting: voluntary participation by States in the pilot phase and first phase, followed by the second phase in which all other States except for exempted ones will participate. The meeting focused on how to operationalize the approach, and the results of the meeting were reported to the Council on 26 August 2016, where the draft Assembly Resolution text was approved for submission to the 39th Session of the Assembly. What was the role of the two rounds of Global Aviation Dialogues (GLADs) on MBMs in 2015 and 2016? The Global Aviation Dialogues (GLADs) are the response to the ICAO Assembly's request in Resolution A38-18, paragraph 19 b), for the Council to organize seminars and workshops on a global scheme for international aviation. The GLADs aimed to allow for well-informed deliberations on a global MBM scheme in the ICAO process toward the 39th Session of the ICAO Assembly.
The first round of GLADs was organized throughout April 2015 across the ICAO regions in Peru, Kenya, Egypt, Singapore and Spain, with 362 participants in total from 79 States and 22 International Organizations. The second round of GLADs was organized in March/April 2016 in Egypt, Senegal, Indonesia, the Netherlands and Mexico, with 390 participants in total from 60 States and 20 International Organizations. The GLADs was a forum for information sharing and exchange of ideas, rather than a forum for decision-making. The main objective of the GLADs was to reach out to those States that are not directly engaged in the Council or CAEP. To facilitate the engagement of participants, the GLADs used a unique small-group format to organize thematic dialogue sessions on design elements and implementation aspects of a global MBM scheme. Each dialogue session was held in a small-group format: a facilitator was assigned to each group, group members discussed specific common questions, and each group nominated a speaker to report back its summary of discussion to the plenary.All documentation including presentations, dialogue questions, reference material, as well as the compiled summaries of small group dialogues are available on the 2015 GLADs website (http://www.icao.int/meetings/GLADs-2015/Pages/default.aspx) and the 2016 GLADs website (http://www.icao.int/Meetings/GLADs-2016/Pages/default.aspx) respectively. Why were international aviation emissions not included in the Paris Agreement at COP 21? The Convention on International Civil Aviation (so-called "Chicago Convention") and the United Nations Framework Convention on Climate Change (UNFCCC) are two international treaties signed in 1944 and 1992 respectively. The Chicago Convention's 191 Member States and the UNFCCC's 197 Parties to the Convention are basically the same countries, as both treaties have nearly universal membership.As a specialized UN agency to address all matters related to international civil aviation, including environmental protection, ICAO has been diligently addressing emissions from international aviation.The ICAO Assembly, comprised of all Member States, requested its Council to ensure that ICAO exercises continuous leadership on all environmental issues relating to international civil aviation, including GHG emissions. This is reflected in paragraph 2. a) of Assembly Resolution A39-2, which constitutes the consolidated statement of continuing ICAO policies and practices related to environmental protection – climate change.
Emissions from domestic aviation, as other domestic sources, are addressed under the UNFCCC and calculated as part of the national GHG inventories and are included in national totals (part of the Nationally Determined Contributions (NDCs)), while emissions from the so-called "bunker fuels" (i.e. fuel used in international aviation and maritime transport) are reported separately. Also following a decision of the ICAO Assembly, ICAO provides information to the UNFCCC process on a regular basis, on international aviation emissions and on the activities undertaken to address these emissions.The Paris Agreement is an international agreement linked to the UNFCCC; the legal relationship between the Paris Agreement and the UNFCCC is established by means of the former being an instrument to enhance the implementation of the Convention (i.e. UNFCCC). This legal relationship is similar to the one existing between the Kyoto Protocol and the Convention.The ICAO agreement on a global MBM scheme for international aviation complements the ambition of the 2015 UNFCCC Paris Agreement and constitute the most significant climate agreement since its adoption. What was the process and actions taken so far since the adoption of CORSIA at the 2016 ICAO Assembly? The 39th ICAO Assembly in October 2016 adopted Resolution A39-3:
Consolidated statement of continuing ICAO policies and practices related to environmental protection – Global Market-based Measure (MBM) Scheme.
The Council in its 209th session in November 2016 endorsed the overall plan of CORSIA preparatory activities on the development of CORSIA related SARPs/guidance (in accordance with paragraph 20 of A39-3) and capacity building and assistance to States (in accordance with paragraph 22 of A39-3). The Advisory Group on CORSIA (AGC) was newly established and the Council decided the governance structure and relations between the Council, CAEP and the AGC.
As requested by the Assembly, a series of five regional seminars were held in the following venues: Rio de Janeiro, Brazil (27 to 30 March 2017); Bonn, Germany (3 to 6 April 2017); Jakarta, Indonesia (10 to 13 April 2017); Nairobi, Kenya (10 to 13 April 2017); and Cairo, Egypt (18 to 20 April 2017) and an additional seminar on CORSIA was held in ICAO headquarters in Montreal. The objectives of the regional seminars were to share information on CORSIA’s design elements and implementation aspects and to provide an opportunity for States to share their existing readiness for CORSIA implementation, with the assessment of further assistance needs. The objectives of the CORSIA seminar held at ICAO Headquarters in Montréal were expanded to discuss the outcome and lessons learned from the regional seminars to seek commonality in terms of expected next steps. In total, 582 participants from 102 States and 21 International Organizations participated in the 2017 ICAO Seminars on CORSIA.
All documentation including presentations, exercises and reference material are available on the website of the 2017 ICAO Regional Seminars on States' Action Plans and CORSIA (www.icao.int/Meetings/RS2017/Pages/default.aspx) and the website of the 2017 ICAO Seminar on CORSIA (www.icao.int/Meetings/CORSIAHQ17/Pages/default.aspx) respectively.