Aviation news analysis
50 SKY SHADES - World aviation news

Aviation Watchdog Seeks to Increase Carbon Offset Requirements for Airlines

Download: Printable PDF Date: 09 May 2016 03:58 category:
Aviation Watchdog Seeks to Increase Carbon Offset Requirements for Airlines - Airlines publisher
Krista Kuznecova
Aircraft: Airplanes
Source: Bloomberg

The International Civil Aviation Organization is considering new rules that would require airlines to buy two forest-protection emission credits for each metric ton of carbon dioxide, double the typical amount, amid concern over the permits’ environmental credibility, according to two people with direct knowledge of negotiations.

As the United Nations-overseen regulator builds the first global emissions market for the industry from 2020, it wants to include forest-protection credits to get a wide range of supply. It’s also accounting for the fact that some see the offsets as less rigorous than other types of credits, said the people, who asked not to be identified because some of the discussions are private.

The aviation regulator agreed in 2013 to create its own global trading system after the European Union scaled back expansion plans for its market, the world’s biggest, that would have covered international flights. ICAO’s program may become a financial lifeline to emission-reduction projects from wind parks to industrial-gas destruction after both the U.S. and EU said they weren’t planning to use international credits as part of a global deal to fight climate change from 2020.

Anthony Philbin, an ICAO spokesman in Montreal, declined to comment on the potential rules, including forest credits, in the regulator’s planned market.

“The aviation market-based mechanism is still subject to further deliberation and decision by our member states, notably at the high-level meeting we’re holding for all of them from 11-13 May,” in Montreal, he said.

‘Odd, Random’

Emission credits can be created from existing forests that might otherwise have been logged. To ensure credibility, existing rules for the credits, known as Reducing Emissions from Deforestation and forest Degradation, or REDD, may already include some safeguards against natural disasters or illegal logging.

Discounting REDD credits by such a large amount “seems a little bit odd and random” because it’s rare that there’s a reversal of the carbon dioxide absorbed by forests, said Mike Korchinsky, chief executive officer of Wildlife Works Inc. in Mill Valley, California, which supplies credits.

Such a big discount might stop forest-protection projects from being financially viable, Korchinsky said. Still, if airlines are “willing to pay the usual price for a REDD credit and buy twice as many, who am I to say no?”

REDD credits were changing hands for $4.30 a metric ton in 2014, according to a June report by Ecosystem Marketplace, a research provider on voluntary carbon markets. Carbon allowances in the EU’s emissions trading system were trading at the equivalent of $7.08 a ton Thursday on the ICE Futures Europe exchange in London.

ICAO’s market proposes to offset airline-industry emissions growth after 2020.

Loading comments for Aviation Watchdog Seeks to Increase Carbon Offset Requirements for Airlines...


Etihad Airways to Optimize Operations with Crew Management Solutions

Boeing has announced an agreement with Etihad Airways, the national carrier of the United Arab Emirates, to provide multiple crew management solutions to support the planning and operation o...

Airbus: Supporting Clean Sky

Airbus plays a major role in Clean Sky and is leading the development of several cutting-edge technology demonstrators that will help with sound reduction and lowering CO2 and gas emissions produced b...

Major repair of Russian-made helicopters carried out in Azerbaijan for the first time

The Service Center for helicopter major repair at Silk Way Helicopter Services carried out the major overhaul of Mi-8AMT/MTV helicopters for the first time. The decision to create such a center in...

Pilatus Hands Over PC-24 Super Versatile Jet to Peter Brabeck-Letmathe

Peter Brabeck-Letmathe, former Chairman and CEO of the Nestlé Group, accepted the keys to his PC-24, serial number 104. Peter Brabeck-Letmathe is one of the very first owners to fly the brand-n...