AviationClimateAviation&ClimateChangeFrameworkaddressingGlobalFrameworkforaddressingaviationaviationCO2emissionsemissionsICAODGCIC‐216‐18June,2010_MontréalPaul SteelePaul SteeleExecutive Director, ATAGExecutive Director, ATAGOn behalf of ACI, CANSO, IATA, ICCAIA,On behalf of ACI, CANSO, IATA, ICCAIA,Aviationisakeydriverofsocial&economicdevelopment2.2BillionPassengers32MillionJobs8%ofGlobalGDP(US$3.5Trillion)2%ofGlobalMan‐madeCO2emissionsMajordriveroftourismandtradeAviationemissionschallengeCO2emissions fromthe global fuel burnof commercialairlines0200400600800100012001400160019901993199619992002200520082011201420172020202320262029

Million tonnes CO 22009F593mTPre-recessionICAO forecastPost-recessionIATAforecast2005 levelOurtargetsareambitious2010202020501.5% p/a fuelefficiencyWorkingtowards CNGCNG from 2020Implementation ofglobal sectoralapproach50% reduction innet CO2emissions over2005 levelsEmissions reduction roadmapNo actionCO2emissionsBusiness as usual emissionsGross emissions trajectory-50% by2050(schematic)205020102005202020302040Emissions reduction roadmapNo actionTechOpsInfraCO2emissions-50% by2050Business as usual emissionsKnown technology, operations and infrastructuremeasuresCarbon-neutral growth 2020Gross emissions trajectoryCNG 2020(schematic)205020102005202020302040Emissionsreductionroadmap200520502020TechOpsInfraNo actionCO2emissionsBusiness as usual emissionsKnown technology, operations and infrastructuremeasuresBiofuels and additional technologyCarbon-neutral growth 2020Gross emissions trajectoryEconomic measuresBiofuels +add. TechCNG 2020-50% by2050(schematic)201020302040IndustryisunitedbehindthesetargetsIATA AGM Resolution1.EndorseeffortsforglobalcarbonemissionsframeworkunderICAO2.EnsureresponsibilityformeetingcollectiveCNG2020target–Equitablyandfairlydistributed–Considerearlyactionbyairlinesinadvanceof2020–Levelplayingfieldamongstairlines–Considerspecialneedsofdevelopingcountries3.ICAO37thAssembly:ÀAgreeglobalframeworkconsistentwithindustryproposalsMonitoringandreportingagreed•Robustandtransparentmonitoringandreportingoffuel&CO2–MandatoryreportingbyIATAairlinesasfrom2010•DatarequirementsTonne‐kilometersFuelconsumptionAlternativefueluseCarbonoffsetsIndustry1.5%efficiencytargetCO2from commercial airline fuel burn1990199319961999200220052008201120142017202040050060070080090010001100 CO 2 million tonnes728 million tonnes ofadditional cuts required by2020 tomake -1.5% paefficiency targetCO2Frozen technologyat 2010 fuelefficiencyIndustry1.5%efficiencytargetNew aircraftdeliveries020040060080010001200140020072008200920102011201220132014201520162017201820192020

Number of aircraftScheduled delivery of new jet aircraftNew aircraft required for'normalreplacement' and forecast growth12,000 new aircraft to buy at cost of$1.3 trillionIndustryisplayingitspartGovernmentshavetheirparttoplaytooInvestmentsinATMimprovements‐e.g.NextGen,SESARinR&DfundingintechnologyOurbiggestopportunityisbiofuels•With the potential toreduce our carbonfootprint by 80%•Full certification isimminent•Next step: scaling up andcommercialisationPromotionofaviationbiofuelsR&DfundingPilotprojectsFiscal&investmentincentivesTransport&energypolicyGovernmentshavetheirparttoplaytooWhatisneededisaglobalapproachWhatisemergingisafragmentedapproachAviationincreasinglyfacedwithIncoherentpoliciesDoublechargingCashgrabsUncoordinated Patchwork ̧ETS legislation ̧EU ̧NZ ̧Proposals for ETS in: ̧Australia ̧South Korea ̧USA ̧Japan ̧Direct Taxation ̧UK ̧Ireland ̧Germany ̧George Soros 5% ticket tax proposalDouble‐counting,counting,complexitycostandcomplexityThe37thICAOGeneralAssemblyisauniqueopportunityforgovernmentstoagreeonaglobalframework.......basedonsoundprinciples•Emissionsaccountedforatgloballevel•Emissionsaccountedforonce•Considerspecialneedsofdevelopingcountries•Equaltreatmentofoperatorsonroutes•Emissionsaddressedthroughcombinationoftechnology,operations,infrastructureandeconomicmeasures•Openarchitecture– accesstoglobalcarbonmarkets/mechanisms•EventualrevenuesprioritisedforreinvestmentinaviationcarbonreductionWhilereflectingaviationrealities• Worldcommercialairtraffic(RTK)–60%basedonAnnexI–40%basedinnon‐AnnexI• 90%oftrafficisprovidedby33countries– 18AnnexI– 15non‐AnnexI•Non‐AnnexIcountriesaccountfor– 4outof10largestand9outof20largestaviationpowersBridgesmustbebuiltAvailabledesigns:•Technologytransfer•Technicalsupport•Financialsupport•Differentiatedtiming•Deminimisrules•ImplementationframeworksCBDRFailure at ICAO will lead to governmentstaking morefragmenteddecisions.....which could question the orderlygrowth of civil aviationGovernments and industrymust work together throughICAO ......Goals+4PillarStrategy+GlobalFramework...to assure a soundsustainable future for aviation.AviationClimateAviation&ClimateChangeFrameworkaddressingGlobalFrameworkforaddressingaviationaviationCO2emissionsemissionsICAODGCIC‐216‐18June,2010_MontréalPaul SteelePaul SteeleExecutive Director, ATAGExecutive Director, ATAGOn behalf of ACI, CANSO, IATA, ICCAIA,On behalf of ACI, CANSO, IATA, ICCAIA,