The aviation industry calls for a global emissions trading scheme, but other options considered.
The International Airlines Group (IAG) CEO, Willie Walsh, stated that the aviation industry prefers a global emissions trading scheme to address aviation pollution, although other options are also being examined. While emissions from European flights are already covered by the EU Emissions Trading System (ETS), an EU law that aimed to extend the arrangement to intercontinental aviation emissions faced significant backlash. As a result, the task of developing a global alternative was handed over to the International Civil Aviation Organization (ICAO), with a deadline set for a meeting in late 2016. Walsh emphasized that the industry is not divided on the issue, but governments are. In 2012, countries such as Russia, China, and Saudi Arabia accused the EU of infringing national sovereignty and threatened a trade war.
A joint pledge between China and the EU, expected to be signed later this month, calls for a global market-based measure agreement in the ICAO. However, environmental campaigners have concerns about the definition of “market-based” and its effectiveness compared to including aviation in the EU ETS, a cap-and-trade system. Allowance prices in the ETS are currently weak but are expected to strengthen with reforms. Critics argue that any deal allowing airlines to use international carbon offsets may enable them to avoid cutting emissions themselves, as the carbon reductions would be achieved elsewhere.
