Carbon deal reached for aviation industry
191 countries agree to cap-and-trade scheme at Montreal meeting
Aviation became the first global industry with its own climate pact after 191 countries agreed in Montreal on Thursday to a historic accord that will curb emissions from international flights.
One day after the Paris agreement on climate change took effect, the International Civil Aviation Organization (ICAO), a special agency of the United Nations, agreed to a cap-and-trade scheme that will significantly reduce airlines’ emissions growth after 2020.
“Aviation can now claim its ‘Paris moment,’ ” ICAO president Olumuyiwa Benard Aliu said in a statement. “Air transport is not only the world’s first major industry sector to adopt a global approach to international emissions reduction, but very importantly states representing more than 83 per cent of international flight operations have volunteered to participate.”
In total, 65 countries, including Canada, have agreed to join the accord during its voluntary phase, which will run from 2021-26. It will become mandatory for all but a few exempted countries from 2027.
As it stands, the deal will not accomplish ICAO’s original goal of carbon-neutral growth beyond 2020. Instead, the International Council on Clean Transportation estimates that it will offset about 75 per cent of international traffic growth after 2021, or about 2.5 billion tons of carbon. International aviation accounts for 1.3 per cent of global carbon emissions, according to ICAO.
“We’re hoping that more countries will participate,” Annie Petsonk, international counsel at the Environmental Defense Fund, said in an interview. “We want to boost that coverage.”
Major emitters that have not signed on include Russia, Brazil and India. Flights to and from nonparticipating countries will not be covered by the pact.
The accord, officially known as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), will include a carbon market in which participating countries can buy credits to offset any emissions above 2020 levels, while also encouraging them to reduce emissions through new technologies, operational improvements and the use of alternative fuels.
Estimates of how much the carbon-offsetting scheme will cost the global airline industry vary significantly, but most agree that it will cost no more than one per cent of total revenues.
Petsonk said this is likely to add US$6 to US$7 to the price of a round-trip, long-haul ticket.
“Even though it’s a cost and the industry doesn’t like additional cost, we believe it’s a manageable cost for a unique global scheme,” Michael Gill, executive director of the Air Transport Action Group, said in Montreal.
The global airline industry, represented by the International Air Transport Association (IATA), has been a vocal proponent of the accord, arguing that it’s better than a complex and costly patchwork of regional regulations.
“Airlines fully support this agreement,” Alexandre de Juniac, director general and CEO of IATA, told reporters. “What was agreed to today is at the cutting edge of efforts to combat climate change and the air transport industry is very, very proud to be there.” De Juniac added that “all indications” are that more countries will sign on.
As the host country, Canada played a key diplomatic role in securing the agreement and its airlines have long signalled their willingness to participate.
“WestJet applauds ICAO and its members for today reaching this significant agreement on a global, sector-wide approach for emissions management for carbonneutral growth in 2020,” WestJet vice-president Mike McNaney said.