ICAO FINALIZES GLOBAL EMISSIONS SCHEME
November 14, 2016
Earlier this month, ICAO worked to finalize a global scheme to regulate GHG emissions from commercial aviation. At the 39th Assembly in Montreal, ICAO parties agreed to the so-called Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which is the first climate agreement intended to cap the sector’s rapidly growing GHG emissions.
Under CORSIA, emissions from commercial aviation will be capped in 2020 in participating countries. The agreement will then proceed in phases, but not all of the ICAO parties have agreed to participate in all phases. The pilot phase will run from 2021 to 2023; Phase II will follow, from 2024 to 2026. Phase III will run from 2027 to 2035. The pilot phase and Phase II will be voluntary; Phase III will be mandatory for all states, with limited exceptions. Most major emitters, including the United States, the European Union, and China, have agreed to take part in the initial phases, but Russia and India have so far refused to do so.
The scheme will initially rely primarily on offsets: Instead of reducing their own emissions, airlines will purchase carbon credits from GHG-abatement projects, such as forestry conservation and renewable energy projects, to compensate for their rising emissions.
Airlines are also free to pursue other measures to reduce their carbon footprint. For example, JetBlue, United, Virgin, Alaska Airlines and Lufthansa have started blending traditional fuel with biofuels, and some airlines are striking multi-decade supply agreements with biofuel producers. The deal also opens the door to national rulemaking in the commercial aviation sector. We expect to see new regulations from the U.S., EU, and other countries on this issue.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
Share This Post
Authors
