Press Release

Issued by National Business Aviation Association.

September 20, 2013

The National Business Aviation Association (NBAA) today welcomed signs that a proposal under consideration at the International Civil Aviation Organization (ICAO) may lead to a compromise solution to the challenge of how to address aircraft carbon emissions a global basis.

In a measure expected to be ratified by its members at its triennial Assembly this month, ICAO is expected to propose a firm schedule for enactment by 2020 of a global, market-based trading system for carbon-emission credits. In exchange, ICAO is expected to propose that the EU apply its own emission-trading requirements (commonly known as the European Union Emissions Trading Scheme, or EU-ETS) only to emissions of flights within its airspace.

“This compromise represents clear progress toward a global solution for addressing aviation emissions,” said NBAA chief operating officer Steve Brown. “ICAO has continually shown its dedication to establishing a global approach to aviation-based carbon emissions, and this proposal reaffirms that commitment. At the same time, the proposal to stop implementation outside the airspace of EU nations addresses the concerns about the ETS that have been raised in regard to national sovereignty.”

The EU was to have imposed its ETS program on non-European operators earlier this year, charging for emissions for the full length of flights to and from EU airports – a move that provoked concern among many nations, including the United States. Last year, the U.S. Congress enacted a law providing a process for the secretary of transportation to prohibit operators of U.S. civil aircraft from participating in EU-ETS. China and Russia have also vowed not to participate in the scheme. Some countries have threatened retaliation in what many feared could develop into a trade war.

In November 2012, EU Climate Commissioner Connie Hedegaard agreed to a moratorium on ETS implementation outside the European Union for one year, citing anticipated progress in efforts to derive a worldwide way to limit carbon emissions. In the wake of the ICAO compromise offer, there are signs that such a deal would be acceptable to EU ministers.

“If that is the case, then we have reason for optimism that we're moving away from the path toward confrontation, and instead may be headed toward a new era of global cooperation on climate change,” Brown said.