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Greenhouse gas emissions from international aviation and allocation options 1 Preface - background, objectives and contentsThis report on greenhouse gas emissions from international aviation and allocation options is part of the outcome of a project funded by the Danish Environmental Protection Agency (DEPA). The steering group consisted of Lars Olsen Hasselager and Thorbjørn Fangel, both DEPA, and Stefan Krüger Nielsen, ECOtransport Consulting (external consultant). The project was initiated to update the DEPA on ongoing developments in the field of air transport and environment. The background for starting up such a project is that aviation, due to the prospects for future growth in demand for air travel and freight volumes, may become a more significant source of emissions of greenhouse gases in the future. Another reason for the DEPA to take up the subject is that the DEPA need an update on why the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) have not yet been able to agree upon a methodology to allocate emissions of greenhouse gases from international aviation between countries. Only emissions from domestic air transport are included in the national inventories on annual national greenhouse gas emissions reported by Parties to the UNFCCC while emissions associated with fuel used for international aviation activities are to be reported separately. Consequently, emissions from international aviation are not included under the so-called Kyoto Protocol that sets out targets for reductions of national emissions of greenhouse gases to be fulfilled by the period 2008-2012. Article 2.2 of the Kyoto Protocol states that "the Parties included in Annex I shall pursue limitation or reduction of emissions of greenhouse gases not controlled by the Montreal Protocol from international aviation and marine bunker fuels, working through the International Civil Aviation Organisation (ICAO) and the International Maritime Organisation (IMO), respectively" [UNFCCC 1997]. As yet, the ICAO Assembly has not agreed upon new initiatives specifically aimed at reducing greenhouse gas emissions, but ICAOs Committee on Aviation Environmental Protection (CAEP) is investigating several options. Some of these options may have implications for the airlines' reporting requirements as well as the allocation issue. For example, CAEP is currently discussing the possibility of negotiating agreements with the airline industry on a voluntary scheme for improving the fuel efficiency of airlines. Such a scheme may involve the need for airlines to engage in a reporting scheme for fuel consumption and emissions. CAEP is furthermore discussing the possibility of setting up an emissions trading scheme based on a system where airlines are allowed to buy emission quotas in other sectors included under the Kyoto Protocol. Such a framework may involve the setting of a cap for aviation emissions and allocation of emission permits to airlines and probably also the allocation of the emissions of CO2 from international aviation to Parties as well as the need for airlines to engage in a reporting scheme for fuel consumption and emissions. Therefore, the discussion on data availability and requirements seems to be closely connected to the issues of allocation and control options. This explains why this report focuses broadly on all these issues. One aim of the project is to describe the current status of the quality of the reporting by Parties to the UNFCCC of emissions from international aviation activities. The background for this is that the issue is scheduled for discussion at the 18th meeting of UNFCCCs Subsidiary Body for Scientific and Technological Advice (SBSTA). Another aim is to describe which methodologies for allocation of emissions from international aviation that are being discussed within the European Union (EU) and UNFCCC and elsewhere and to assess the data requirements and the data availability for the different options. A third aim is to give an updated description of recent developments within the UNFCCC, EU and ICAO relevant to future efforts to reduce emissions of greenhouse gases from international aviation. A final aim of the report is to give a brief description of some main aviation indicators and trends. Besides the making of this report, this project has provided input to ongoing discussions within EUs Group of Climate Change Experts on Policies and Measures (PAM). During the Danish EU Presidency, the PAM group requested the Danish Presidency to prepare and circulate a questionnaire aiming at preparing EU Member States for discussions at the 18th meeting of SBSTA. The questionnaire should first of all help to the process of clarifying the quality of reporting of emissions from international aviation and marine activities by EU Member States to the UNFCCC. Another aim of the questionnaire is to start up initial discussions within the PAM group on longer-term preferences of EU Member States concerning possible solutions for allocating emissions from international aviation and marine activities to Parties as well as preferences for possible options to control emissions in the future. Due to time constraints this report only briefly touches upon the issues raised in the questionnaire requested by the PAM group. This is because the process of defining the focus areas and specific questions dealt with in the questionnaire and the following period of time required by PAMs members to collect responses in the Capitals have been prolonged beyond the time schedule of this report. The main input for making this report is a literature review of reports dealing with the questions of data quality and allocation options and relevant documents describing recent developments within the UNFCCC, EU and International Civil Aviation Organisation (ICAO) and its Committee on environmental Protection (CAEP) relevant to future efforts to reduce emissions of greenhouse gases from international aviation. Chapter one summarises the contents of the project in Danish language. Chapter two summarises the contents of the project in English language. Chapter three outlines the scope of environmental problems connected to emissions of greenhouse gases from aviation and briefly describes some main aviation indicators and trends. Chapter four gives a brief introduction to some main principles by which aviation greenhouse gas emissions can be reduced and continues by outlining different options for controlling emissions of greenhouse gases from international aviation. Chapter five resumes background information on activities and developments within United Nations Framework Convention on Climate Change (UNFCCC), European Union (EU) and International Civil Aviation Organisation (ICAO) and its Committee on Environmental Protection (CAEP) concerning the political discussions on how to reduce the growth in emissions of greenhouse gases from aviation. Chapter six contains information on emissions from international aviation and discusses the availability and quality of data as well as some recent efforts to improve data quality. Chapter seven describes some selected aircraft emission inventories and reporting guidelines, focusing mainly on the European Corinair emission inventory guidelines, and discusses briefly how these can be used to improve the quality of data reported on emissions from international aviation. Chapter eight describes recent airline reporting on average overall yearly fuel intensity and discusses why improved reporting may be needed if the international community agrees upon implementing control options such as voluntary agreements with airlines on future targets for improving their average fuel efficiency or an open emissions trading scheme allowing the airline industry to trade emissions permits with other sectors. Chapter nine describes different methodologies for allocating emissions from international aviation to Parties and assesses the impact, in terms of carbon added to each country's inventory, of choosing each type of methodology as well as the data requirements and data availability for different allocation options. Furthermore, the chapter briefly discusses the data requirements of different control options that may be implemented at the global level. This latter solution could be part of a scheme where emissions from international aviation are not allocated to Parties leaving the responsibility for reducing emissions to the international community, i.e. for example implemented and administered through the International Civil Aviation Organisation (ICAO). Chapter ten summarises the main conclusions of the report. Appendixes A through K contain information on aviation fuel consumption and related emissions reported to the UNFCCC and the International Energy Agency (IEA) as well as information on air transport volumes in different geographical regions.
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