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| Aviation Emissions Trading Scheme | |
|---|---|
| Name | Aviation Emissions Trading Scheme |
| Type | Policy instrument |
| Jurisdiction | International / Regional |
Aviation Emissions Trading Scheme An Aviation Emissions Trading Scheme is a market-based policy instrument designed to limit greenhouse gas releases from aircraft by setting tradable allowances for carbon dioxide and related pollutants. Originating amid negotiations involving United Nations Framework Convention on Climate Change, European Union Emissions Trading System, and International Civil Aviation Organization, such schemes aim to reconcile aviation growth with commitments under treaties like the Kyoto Protocol and the Paris Agreement. Proposals and implementations have involved stakeholders including Airbus, Boeing, International Air Transport Association, European Commission, and national regulators such as the Civil Aviation Authority (United Kingdom) and the Federal Aviation Administration.
Policy interest in aviation emissions emerged from scientific assessments by bodies including the Intergovernmental Panel on Climate Change and events such as the IPCC Fourth Assessment Report and IPCC Fifth Assessment Report. High-profile incidents like discussions at Conference of the Parties meetings and debates at the ICAO Assembly pushed regulatory responses from blocs represented by the European Union, United States Department of Transportation, and coalitions like Small Island Developing States. Historical precedents include the establishment of the European Union Emissions Trading System and regional cap-and-trade designs in contexts such as the Regional Greenhouse Gas Initiative and the California Cap-and-Trade Program. Airlines and manufacturers cited commitments under instruments including the Montreal Convention while environmental NGOs such as Greenpeace and Friends of the Earth advocated for stricter inclusion.
Schemes differ in geographic and operational reach, ranging from regional proposals by the European Commission covering intra-European Union flights to global measures coordinated through International Civil Aviation Organization. Coverage decisions reference hubs and carriers like Heathrow Airport, Frankfurt Airport, Hartsfield–Jackson Atlanta International Airport, Emirates, Lufthansa, and Delta Air Lines. Emissions subject to allowances typically include carbon dioxide from jet fuel combustion on routes involving territories of participating states; ancillary pollutants considered by studies in journals like Nature and Science include contrail-related radiative forcing discussed at forums such as the World Meteorological Organization. Schemes may exempt small operators, military flights, or humanitarian services, invoking precedents from instruments like the Chicago Convention and standards set by the International Air Transport Association.
Typical mechanisms embody cap-and-trade frameworks influenced by the European Union Emissions Trading System and market mechanisms under the Kyoto Protocol such as the Clean Development Mechanism. Administrators set a cap, allocate allowances—via auctioning or grandfathering—to airlines and operators including legacy carriers and low-cost entrants like Ryanair and EasyJet, then permit trading on registries modeled after systems like the Registry of the European Union. Offset options may reference standards akin to the Verified Carbon Standard and the Gold Standard, while linking arrangements consider architectures like those in the Joint Implementation mechanism. Market dynamics react to fuel price signals from benchmarks such as Brent crude and to technological pathways promoted by NASA research on sustainable aviation fuels and manufacturers’ developments at Rolls-Royce and General Electric.
Compliance relies on emissions monitoring, reporting and verification protocols similar to those developed by International Civil Aviation Organization working groups and reporting systems like the European Aviation Safety Agency databases. Verification bodies mirror accreditation schemes used by United Nations Framework Convention on Climate Change mechanisms. Enforcement tools invoke administrative fines, allowance deduction, and operational restrictions analogous to sanctions applied by the European Court of Justice in disputes over European Union policy. Cases involving disputes have seen involvement from institutions such as the World Trade Organization and national courts including the Supreme Court of the United States in analogous regulatory contests.
Economic analyses draw on modeling from institutions such as the Organisation for Economic Co-operation and Development, International Air Transport Association, and think tanks like the Centre for European Policy Studies. Impacts include ticket price adjustments observed in markets served by carriers such as British Airways and American Airlines, investment shifts toward low-emission technologies from firms like Airbus and Boeing, and potential revenue streams for governments comparable to auctions under the European Union scheme. Environmental outcomes reference projected CO2 reductions quantified in reports by the Intergovernmental Panel on Climate Change and academic studies published in Environmental Research Letters and Proceedings of the National Academy of Sciences.
Legal and diplomatic coordination has engaged the International Civil Aviation Organization, the European Commission, national authorities like the Department of Transportation (United States), and trade partners including China and India. Tensions have arisen over jurisdictional reach, extraterritorial application, and compatibility with treaties such as the Chicago Convention and the Kyoto Protocol, provoking actions at venues including the ICAO Assembly and dispute forums like the World Trade Organization. Proposals for global market-based measures have considered mechanisms akin to the Carbon Offsetting and Reduction Scheme for International Aviation and pathways consistent with the Paris Agreement.
Critiques focus on allocation fairness, competitive distortions affecting carriers like Qantas and Singapore Airlines, and environmental integrity when offsets come from contested programs like the Clean Development Mechanism. Industry groups like the International Air Transport Association and environmental NGOs including 350.org have clashed over stringency, while legal challenges have referenced precedents adjudicated by bodies such as the European Court of Justice and panels at the World Trade Organization. Debates continue over effectiveness versus alternatives such as taxation schemes proposed by fiscal authorities including the International Monetary Fund and national treasuries.
Category:Climate policyCategory:Aviation