IATA Carbon Proposal May Help Save UN Deal

June 4, 2013

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A proposal agreed this week by major airlines could rescue UN efforts for a deal to cut greenhouse gas emissions in the aviation sector, but the industry still needs to lean on governments for the plan to move ahead, industry observers said.

Following its annual meeting in South Africa, the International Air Transport Association (IATA) said it will ask governments to create a system through which airlines would offset any increase in emissions after 2020 by buying carbon credits from projects that reduce emissions in other sectors.

The proposal is meant to give governments that are parties to the United Nations' International Civil Aviation Organisation (ICAO) a blueprint for a global agreement.

It is also a move to prevent the European Union from applying a law that would force airlines to pay for each tonne of carbon dioxide they emit on flights to and from EU airports through Europe's emissions-trading scheme. Implementation of the law was postponed in 2012 after a global outcry.

Under IATA's proposed offsetting system, either air carriers or countries would have to purchase credits to cover the carbon emitted over a set baseline.

"The worldwide airline industry sent a strong message that it is moving forward with its commitments and has offered governments a proposed way forward," said Nancy Young, vice president for environmental affairs for the lobby group Airlines for America, whose members also belong to IATA.

The airlines who agreed to the proposal represent about 85 percent of global commercial air traffic.

Some environmentalists doubted that governments will be ready to sign a deal in time for ICAO's triennial general assembly in Montreal, which runs from September 24 to October 4.

"The question is whether it's just a resolution or will IATA now put their undoubted muscle behind wavering governments, starting with the United States," said Bill Hemmings, aviation manager at Brussels-based group Transport and Environment.

Officials from 17 countries working on the global agreement have been bogged down by issues such as whether states or airlines would be pay for emissions, and whether less-developed countries should have different goals.

Annie Petsonk, international council for the Environmental Defence Fund, said her organisation does not support all elements of the IATA resolution but the plan sends a strong signal to feet-dragging governments.

"We may not agree with every ingredient to bake into this cake but we agree that it's time to bake the cake," she said.

"The fact that the industry is saying 'this can be done this September'... really puts the spotlight on whether governments will get into the kitchen and get it done."

Some green groups rejected IATA's approach, arguing that it will not lead to real emission reductions.

"Only a cap-and-trade scheme with a stringent cap and a limit on the use of offsets will create sufficient incentives for essential emission reductions," said Eva Filzmoser, director of Carbon Market Watch, a watchdog group.