Reducing Pollution from Aviation and Ocean Shipping

In October 2013, the International Civil Aviation organization (ICAO) announced that it would put in place a market-based mechanism to cap net greenhouse gas emissions from international civil aviation at 2020 levels. This chapter analyzes the obligations ICAO’s initial proposal for the mechanism would create for real airlines, and whether it would indeed succeed in keeping emissions at or below the desired level. In order to protect commercial sensitivities, the analysis begins by using hierarchical cluster analysis to identify groups of different types of airlines. The provisions of the ICAO proposal are then applied to these groups. We find that the ICAO proposal is somewhat poorly specified and ambiguous. Further, it is possible to interpret it in a way that would prevent net sectorial emissions from remaining capped at 2020 levels. We also find that, depending on their size and rate of growth, airlines will be required to offset very different proportions of their emissions from international flights. Exemptions from the scheme are poorly targeted. We conclude by recommending that ICAO design and implement a much simpler scheme, and target its exemptions more intelligently. This chapter draws on work done during a summer internship in 2014 at the Environmental Defense Fund with Annie Petsonk. It benefited greatly from feedback by and discussions with Annie, Pedro Piris-Cabezas, and Rafael Grillo Avilla. Any errors and omissions in this chapter are, however, entirely my own, as are the opinions and recommendations.

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