David BatchelorDG for Mobility and TransportEuropean Commission

26 September 2010

INTERNATIONAL AVIATION AND CLIMATE CHANGE

ICAO/McGill Worldwide Conference

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Outline of presentation

.The climate change challenge

.The 37th ICAO Assembly

.International aviation and emissions trading

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EU climate change policy

. Tackling climate change is urgent – action required now

. The EU’s objective is to limit global temperature increase to 2°C above pre-industrial levels

. EU now has legislation in place to deliver a 20% reduction in CO2 emissions below 1990 levels by 2020

. EU will increase target to a 30% reduction below 1990 levels by 2020 in the context of international agreement on climate change

. EU leaders recognise that 80 – 95% reductions in the EU’s emissions are necessary by 2050

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Global vision for <2°C: peak by 2020 and deep cuts by 2050

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Aviation emissions: forecasts indicate significant growth for the next decades

Predicted Global Future Aviation Emissions Growth(2006 baseline)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Mt

CO

eq.

202063% to 88%

increase

2050 290% to 667%

increase

Source: ICAO GIACC/4-IP/1

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The 37th ICAO Assembly

Key issues:

.Global goal» EU supports global goal of 10% reduction in GHG emissions below

2005 levels by 2020» Global goal does not attribute specific obligations» Some states will contribute more towards global goal than others

. Framework for market-based measures» Technological and operational measures insufficient on their own» Need to facilitate the implementation of market-based measures

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International aviation and emissions trading

.In 2004 ICAO endorsed inclusion of aviation in emissions trading systems

.Aviation included in EU ETS from 2012

.Covers all flights departing from and arriving at EU airports (with some exemptions)

.EU recognises need for global solution

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Flexibility provisions in EU ETS

.Where a 3rd country adopts measures to reduce the climate impacts of flights arriving in the EU:» EU will ensure optimal interaction between

measures» Legislation enables exemptions for arriving

flights from scope of the EU ETS

.In case of agreement on global measures, EU would amend Directive as necessary

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Conclusions

.Clear that international aviation must contribute to tackling climate change

.37th Assembly presents opportunity for ICAO to demonstrate leadership through:»establishment of clear and ambitious goals» framework for measures

.Global framework must facilitate adoption of measures by states