Aviation fall 2016

Question 1

Aviation Policy Options

Answer 1

• Carbon Accounting
• Emissions limits/low carbon fuel standard
• Require Fuel Switching
• Efficiency Standards
• Mandatory Offsetting
• Emissions Trading
• Improved Flight Management/Air Traffic Control

Question 2

Kyoto Deference to ICAO and IMO

Answer 2

Parties of Annex 1 shall pursue limitation or reduction of emissions of GHGs not controlled by Montreal

Question 3

Common but differentiated responsibility (CBDR)

Answer 3

UNFCCC draws distinction between differential obligations in developed and developing states while International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) do not

Question 4

How might you structure Aviation reductions in a framework convention?

Answer 4

• One solution would be to count where fuel sold, but- in some States (Netherlands, Malta, Singapore), fuel is large part of economy.
• Concern that fuel sales would shift to unregulated states (leakage)

Question 5

Why did EU want to regulate international flights?

Answer 5

• Competitiveness- otherwise disadvantages EU airlines

- Leakage

Question 6

EU ETS Aircraft Coverage

Answer 6

Included- large passenger carriers such as Delta, major express cargo carriers such as FedEx and UPS
Exemptions- ‘De minimis’ operator emitters, military aircraft, search and rescue, state flights of high government officials.

Question 7

Aviation Allowances in EU ETS

Answer 7

• Cap- for 2012, capped at 97% of average emission for years 2004-06, 2013-2016, capped at 95%
• Allowances- 82% of historic emissions are free, 3% into a reserve for new entrants, 15% auctioned.
• Favors airlines that have higher capacity, more efficient, and long haul

Question 8

Price Effect of EU ETS

Answer 8

Assuming allowance prices of 10 euros/metric ton, cost of New York to London about $5, but since large % of free allowances, costs could be less. Would depend on whether airlines pass on value of allowances to passengers.

Question 9

Equity Issues (of original proposal) of EU ETS

Answer 9

• What if a non-EU state adopts a comparable measure?

- How to handle revenues and airlines from developing countries?

Question 10

Why did other States object to EU legislation?

Answer 10

• EU gets all of the revenue and gets to decide how to spend it.
• Requires allowances for portions of flights outside of EU airspace

Question 11

Initial Aviation Policy Development

Answer 11

1. Kyoto Protocol- countries should work through ICAO
2. Historically, ICAO ruled out global trading- encouraged states to include in domestic regimes
3. Due to lack of progress in ICAO, EU passed legislation in 2009 to add aviation