1 An accompanying guidance document provides additional information explaining the provisions contained in this agreement and

alternative approaches that may be considered .

2 Partner I (industry) represents individual or groups of airlines and/or trade associations on behalf of their members (referred to

as ‘participating companies’ in this document). Partner G (governments) represents individual States, regional groups of States,

and/or international organizations on behalf of the States.

3 ICAO Assembly Resolution A33-7

4 Ibid

5 These goals are illustrative only and are shown for the purposes of providing guidance to FESG for its economic analysis of

voluntary measures. It is important to note that these goals are directly linked to projections of fuel efficiency undertaken by FESG.

The current projections based on the FESG base case show a 24 per cent improvement in fuel efficiency over the 12-year period

from 1998-2010. These illustrative goals would increase that fuel efficiency to 30 per cent and 36 per cent over this 12-year period.

Issues related to selection of a goal and the choice of a metric are discussed in detail in the accompanying guidance document.

TEMPLATE AND GUIDANCE ON VOLUNTARY MEASURES

PART I — TEMPLATE AGREEMENT 

MEMORANDUM OF UNDERSTANDING1

I. INTRODUCTION

A. This Memorandum of Understanding (MOU) is a voluntary agreement between

PARTNER I and PARTNER G2

. PARTNER I and PARTNER G are hereinafter referred to as the “Partners.”

B. The ICAO Assembly has expressed its commitment to limit or reduce the environmental

impact of aircraft engine emissions and has directed the ICAO Council “to facilitate actions . . . including

[develop] a template voluntary agreement, as appropriate, and to work to ensure that those taking early

action would benefit from such actions and would not subsequently be penalized for so doing.”3

C. The purpose of this Partnership is to limit or reduce emissions of carbon dioxide (CO2)

from aviation. It represents an important step towards addressing aviation’s contributions to global climate

change. In order to ensure continuity, achievements resulting from the Partnership should be taken into

account in the design and implementation of any future policy measures pursuing a similar purpose.

D. The template supports ICAO’s aim to encourage harmonized efforts. Specifically, it

encourages States taking action to limit or reduce emissions that impact climate change, to do so “in a

consistent manner to both domestic and international aviation emissions.”4

II. PARTNERSHIP GOAL

The Partnership Goal is [1⁄2 per cent or 1 per cent] annual improvement in fuel/RTK above

the FESG base case scenario over a 12-year period from 1998-2010.5
- 2 -

III. BACKGROUND AND GENERAL PRINCIPLES

A. The Partners recognize that aviation is an integral part of society and the global economy.

The Partners also recognize the projected continued growth of air transport demand worldwide and that

efforts must be taken to address the environmental impacts associated with that growth. Further, Partners

recognize the unique and critical safety and security requirements for aviation.

B. The Partners will use this MOU to support the global efforts to limit or reduce CO2

emissions from aviation worldwide. The Partners recognize that to the extent practicable an industry-wide

approach will result in greater environmental improvement by this highly globalized industry and will lessen

negative competitive impacts.

C. Nothing in this MOU shall constrain the Partners from taking actions relating to CO2

emissions or fuel use that are authorized or required by law.

IV. PARTNER I RESPONSIBILITIES

A. Emission Reductions. PARTNER I will monitor progress toward the Partnership Goal

and will support the Partners’ efforts to limit or reduce CO2 emissions by: 

(1) sharing information about operational opportunities and technologies that are not

considered confidential; 

(2) adopting technically feasible, cost-effective and commercially available techniques

and strategies for improving fuel efficiency for aircraft including, but not limited to,

the strategies included in the attachment where these are cost effective and can be

employed in a manner consistent with safety and security requirements; 

(3) recognizing the need to achieve CO2 reductions when considering future purchases

of aircraft taking emissions into account; and 

(4) if appropriate, achieving creditable emissions reductions in other industry sectors

through mechanisms such as emissions trading. 

B. Emissions Reporting. PARTNER I will collect the data and report to PARTNER G

annually on [insert date]. The Report will include RTK information and other information deemed appropriate

by the Partners.

C. Data Quality. PARTNER I will provide its annual RTK [and any additional reporting

parameters] including a written explanation of the methodology used for the reporting. This information will

be made available to PARTNER G. In order to allow the Partners to have continued confidence in the

reliability of the reports, a qualified auditor will be given access [each year or periodically] to audit the

reports and supporting documentation. PARTNER G and PARTNER I will select the appropriate auditor

capable of independently verifying the reports for quality.
- 3 -

V. PARTNER G RESPONSIBILITIES

A. Support for Emission Reduction Efforts. PARTNER G will support efforts to limit or

reduce CO2 and towards achieving the Partnership Goal by:

1) participating in and supporting activities to share information; 

2) addressing barriers that may impede voluntary improvements of fuel efficiency for

aircraft; 

3) recognizing PARTNER I and the participating companies for their emission reduction

commitment and technical leadership; and 

4) endeavoring to ensure appropriate credit is given for such action.

B. Data Quality. PARTNER G will work with PARTNER I and participating companies

to record and verify data and to ensure that emissions inventories are reliable, accurate and transparent. In

all cases, PARTNER G will work to ensure that data are evaluated and reported in such a way as to protect

confidential business information.

C. Baseline Credit/Credit for Early Action. PARTNER G will seek to ensure that proper

credit is given to PARTNER I for efforts achieved under this MOU in any future system established to limit

or reduce CO2 emissions from aviation.

D. International Harmonization. PARTNER G will support efforts to encourage the use

of coordinated international approaches to limit or reduce the environmental impacts of aviation. 

E. Industrial Harmonization. PARTNER G will endeavor to support efforts to encourage

the uses of coordination across industrial sectors to limit or reduce the environmental impacts of CO2

emissions. 

VI. OTHER ISSUES

A. Modification. This MOU can be modified only by means of a document signed by both

parties.

B. Effective Date and Termination. The Partners agree that the terms outlined in this MOU

will become effective when signed by both Partners. The Partners agree that either Partner may terminate this

MOU at any time, for any reason, with no penalty by giving notice in writing six months prior to the date of

requested early termination. This MOU in any case terminates on the date the annual report for the last year

covered by the agreement is provided to PARTNER G. 

C. Interim Progress. The Partners agree to publish progress reports [every second year,

annually, periodically] detailing the progress that has been made toward achieving the Partnership Goal. Such

reports will include information provided by PARTNER I as well as other appropriate documentation.

However, measures will be taken to ensure that all confidential information is protected. The Partners agree

to inform the Committee on Aviation Environmental Protection on progress towards meeting the Partnership

Goal at meetings of the CAEP, its Steering Group, and appropriate Working Groups.
- 4 -

D. Technical Assistance. Where relevant, the Partners may provide or arrange for technical

assistance for participating companies that seek assistance in meeting goals or reporting results. 

E. Role of Third Parties. The Partners shall work with airports, air traffic control providers,

aviation manufacturers and environmental organizations to facilitate the goals of this agreement.

F. Enforceability. This is a voluntary MOU that expresses the good-faith intentions of the

Partners and is not enforceable by any party.

G. Authority. The undersigned hereby execute this MOU on behalf of the Partners. 

For PARTNER I:

Signature:________________________Date: __________________

Name: 

Title: 

For the PARTNER G:

Signature:________________________Date: __________________

Name: 

Title: 

General notes:

If Partner I is a trade association, a list of names of the ‘participating companies" may be required. Also,

provisions may be required for companies to be allowed to drop out or to join the agreement.
- 5 -

6 The following list is illustrative of possible actions that some Partners might take on a voluntary basis to limit emissions toward

an agreed upon goal. It contains both operation and technological options for reducing emissions of CO2. The operational measures

were drawn from Circ 303, Operational Opportunities to Minimize Fuel Use and Reduce Emissions, CAEP/5-IP4.

ATTACHMENT

OPERATIONAL OPPORTUNITIES AND TECHNOLOGY OPTIONS6

a) fly the most fuel efficient aircraft type for the mission;

b) taxi the most fuel efficient route;

c) fly the most fuel efficient route;

d) fly at the most fuel-efficient speed;

e) operate at the most fuel efficient altitude;

f) maximize the aircraft’s load factor;

g) minimize the empty weight of the aircraft;

h) load the minimum fuel to safely complete the flight;

i) minimize the number of non-revenue flights;

j) maintain a clean and efficient airframe and engines;

k) reduce aerodynamic drag by efficiently distributing load on board;

l) install winglets where appropriate;

m) engine retrofits and/or upgrades;

n) re-engine aircraft;

o) use polished aircraft; and

p) more regular maintenance to correct aerodynamic deterioration.
- 6 -

PART II — VOLUNTARY MECHANISMS:

A GUIDANCE DOCUMENT FOR THE

TEMPLATE MEMORANDUM OF UNDERSTANDING

1. INTRODUCTION

1.1 Background

1.1.1 This guidance provides interested parties with a description of key elements of a Voluntary

Agreement, options within each of these elements, and a checklist to use in developing a voluntary agreement.

1.1.2 Voluntary agreements between public and private sector partners encourage comprehensive,

cost-effective energy efficiency and pollution prevention actions and allow companies the flexibility to

achieve environmental goals at the least possible cost. A voluntary agreement can be particularly attractive

as a first step toward demonstrating to governments and the public that the aviation industry is acting

responsibly to address the concerns about global warming.

1.1.3 At the outset, it is useful to set out the essential characteristics that should be sought from

an effective voluntary agreement; these include:

a) administrative simplicity — to encourage partners to enter into agreements;

b) flexibility — to enable partners to take those actions that will most effectively reduce

emissions and to encourage innovation in emissions reduction;

c) partnership and shared values — working cooperatively to achieve common goals;

d) transparency and robustness — to further ensure the effectiveness of an agreement; and

e) features that complement or at a minimum do not detract from other efforts to improve

overall environmental performance.

1.1.4 Successful voluntary agreements minimize costs especially compared with the perceived cost

of regulatory actions. As the action that needs to be taken to achieve a target becomes more costly — as costly

as potential “command and control” regulations could be, the incentive to pursue a voluntary agreement

diminishes. Therefore, successful voluntary agreements should be cost-effective.

1.2 Policy objectives and tools

1.2.1 Voluntary agreements can take many forms. The draft template agreement accompanying

this guidance document (Part I) is a Memorandum of Understanding (MOU) between government (G) and

industry (I). It sets forth the expectations of the partners, the goals, reporting requirements, and milestones.

By its very nature, it is not legally enforceable; however, by entering such an agreement, partners are assumed

to undertake good faith efforts to comply with the terms and conditions. If one or more partners are unable

to comply with the agreement, the agreement can be terminated and alternative methods for reducing

emissions can be pursued.
- 7 -

1.2.2 Another approach is a voluntary agreement that is itself legally binding, but where the

partners enter into it voluntarily, this is sometimes referred to as a “negotiated agreement.” This type of

agreement may be more suitable to certain types of circumstances. An MOU without legally binding

consequences may be more likely to gain broad participation and serve as a first step. But a negotiated

agreement may be more effective in controlling emissions. It is important to recognize that some parties may

prefer a binding agreement and that neither the template nor this guidance is intended to preclude such

agreements.

1.2.3 The policy objective of this Partnership (as presented in the MOU) is to voluntarily limit or

reduce emissions of carbon dioxide (CO2) from aviation by meeting a specified goal. It represents an

important step driven by the ICAO process towards fulfilling aviation’s commitment to address contributions

to global climate change. In order to ensure continuity, achievements resulting from the Partnership should

be taken into account in the design and implementation of any future policy measures pursuing a similar

purpose.

1.2.4 Credibility is essential to all successful voluntary agreements. It requires that the agreements

be developed and implemented in a manner that is transparent and accountable by the Partners directly

involved and other interested stakeholders. The agreements must contain quantifiable goals that can be

achieved in a verifiable manner. 

1.3 Partners

1.3.1 Governments and industry interested in pursuing voluntary agreements should determine who

would be the most appropriate partners for such an agreement. This document and the accompanying template

were drafted with the greatest degree of flexibility concerning who the Partners in the agreement would be.

Those entering into an agreement should be legally recognized entities. There are many examples of

voluntary programmes in other sectors where the partners are trade associations, individual companies,

regional government entities, or individual national or international entities.

1.3.2 It may be appropriate for a representative body, such as a trade association to sign an

agreement. This arrangement can be administered more easily, allow for greater flexibility across the industry,

and reduce the concerns that could arise if some companies enter an agreement and competitors do not. Other

options include creating an agreement that all governments and all companies can enter without modification

(a “one size fits all” approach) or one that establishes general principles and language, while allowing for each

individual agreement between airlines and governments to vary in specific ways (a tailored approach).

1.4 Role of ICAO

1.4.1 While ICAO will not be a Partner to a voluntary agreement to reduce CO2, there are

significant and continuing roles that ICAO could pursue to support a voluntary agreement programme in the

aviation sector, such as: 

a) providing a framework for agreements; 

b) encouraging consistency between such agreements; and

c) providing a forum to develop, review and promote the use and recognition of voluntary

agreements. 
- 8 -

1.4.2 Furthermore, ICAO’s current role, providing a venue to develop and encourage the use of

voluntary approaches, is invaluable.

2. PARTNERSHIP GOAL

2.1 Introduction

2.1.1 Government and industry interested in voluntary programmes should first establish a policy

objective and a goal that meets that objective. The policy objectives and associated goals need to be clearly

defined. Agreements based on unclear objectives, such as a desire to reduce emissions without any specified

level of reduction are unlikely to be successful.

2.1.2 There are two related elements of the goal presented in the template MOU: 

a) the actual level of the targeted emissions reduction; and

b) the metric used to measure that reduction.

2.1.3 The goal must be chosen on the basis of technically sound information as well as open

discussion concerning environmental benefits, technical feasibility, and economic costs. It is important to

consider historical performance, future projections and potential future technological changes. While

voluntary agreements necessarily involve costs in meeting a goal, industries are interested in agreements

where there are lower costs than if other approaches are pursued, and where there are flexible mechanisms

available for meeting environmental goals. Therefore, while the environmental goals must be challenging,

the projected costs of meeting those goals should be more cost-effective than the projected potential costs of

a regulatory programme.

2.1.4 When setting a goal, it is important to consider what the impacts will be on other emissions

and on noise, just as it is important to ensure that meeting that goal will not compromise safety and secure

operations.

2.1.5 A quantitative goal is important for ensuring that the MOU is as simple and transparent as

possible. If an agreement covers a long period of time, milestones, in the form of intermediate goals are

necessary to ensure that progress towards meeting the goal is made. Often the goals are reviewed at agreed

intervals -- such as biannually. Intermediate goals can facilitate triggering reviews and possibly consequential

corrective action. A voluntary agreement that spans many years (e.g., 15 years) is more likely to include

intermediate goals than a voluntary programme with a shorter timeframe (e.g., 3 years).

2.2 Selecting a metric

Absolute or relative goals

2.2.1 Choosing the proper metric for expressing a goal (e.g., percent below a base year, relative

to a growth scenario, benchmarking, etc.) is a key element of any voluntary agreement. Depending on the

approach taken in the voluntary programme, improvements in emissions can be measured as absolute or

relative reductions and can be expressed using a variety of terms.
- 9 -

2.2.2 Voluntary agreements recognize actions taken to reduce emissions that exceed expectations.

Such achievements can be evaluated against a baseline of actual past emissions or a projection of baseline

forecasted emissions. Environmental improvements can be measured against future benchmarks or measured

against past or current performance.

2.2.3 There are advantages and disadvantages with using either a relative goal or an absolute goal.

The goals tend to emphasize different aspects of the overall environmental goal of improving fuel efficiency.

The relative goals generally recognize improvements that can be realized whether the absolute emissions

continue to grow or not. Absolute goals can demonstrate real reductions in actual emissions. The metric

chosen must reflect the overarching goals of the programme.

2.2.4 Often a voluntary programme is based on reducing emissions to a level compared to the

reported emissions for a given year. The given year, is the base year, and the target level of emissions (e.g.,

base year minus a percentage) is the goal that the voluntary partners agree to meet. Establishing an acceptable

baseline is an important undertaking. Clearly there are always uncertainties that must be considered.

However, given the tragic events of 11 September 2001, there are particular concerns and uncertainties that

should be considered when determining an appropriate baseline for a voluntary agreement with the aviation

industry. If for example, the decision is made to pursue a voluntary programme with an absolute goal, the goal

could be based on the emissions data for 2000, or some other representational year and include a goal that

is a certain percentage above or below the emissions for 2000. One advantage to this approach is that there

is usually solid information concerning past emissions. However, it is not always appropriate to tie a

voluntary programme to a stagnant set of data. As an industry evolves, its emissions will change. If a baseline

year approach is used then the focus should be on selecting a proper year or group of years. Some agreements

use absolute reductions in emissions (e.g., 10 per cent below 1990 levels). These have the advantage of

greater certainty, but may be inappropriate given the expected growth in aviation. An alternative is to seek

improvements in emissions per unit.

Improvements per unit

2.2.5 To successfully adopt a goal based on per unit improvements in efficiency, it is important

to agree on the unit measurement and to agree on the anticipated future growth projections. Historic trends,

economic analysis, technological advancements and more, can be used to construct future baseline emissions

scenarios. Voluntary programmes can be established based on anticipated behaviors derived from such

scenarios. The advantage to using such a projection is that it permits the voluntary programme to more closely

track a likely growth scenario. However, the uncertainties surrounding such scenarios are disadvantages to

their use.

2.2.6 Different improvement or reduction units (fuel intensity and fuel efficiency) can be

considered. It is important to distinguish between them. For example, fuel intensity expresses the amount of

fuel consumed per available seat kilometer (ASK), passenger kilometer (PK) or tonne kilometer (TK). Both

fuel efficiency and fuel intensity are metrics used to characterize the amount of fuel required for a quantity

of aircraft of productivity. Several important questions arise in considering the choice of metrics. For

example, should the productivity metric be based on transport capability where the predominant aim is

improvements based on technological progress (e.g. ASK) or both technological and operational

improvements (e.g., revenue-tonne kilometer, RTK).

2.2.7 International Air Transport Association (IATA) fuel efficiency goal uses RTKs as the

preferred metric. This metric was chosen because in combination with fuel use data it is thought to provide

a better indication of the actual social-economic performance of the sector and would therefore also be better

suited for communication with the public. A potential drawback of using RTK as a metric is that when a
- 10 -

declining economy results in lower load factors, the industry could be blamed for a perceived deterioration

of environmental performance.

2.2.8 To be credible, the goal must reflect actions beyond those that would otherwise be taken in

the absence of any agreement. Therefore, the Partners must discuss and agree on likely future base case

scenarios. Flexibility to revise the goals based on changes in industry and the economy can be built into the

programme. That is why periodic review and record-keeping is so necessary.

2.2.9 The accompanying template expresses the goal measured in fuel use per RTK, but other

metrics such as ATKs or ASKs (used in a voluntary programme established by the Japanese government and

their airlines) could be considered.

Other approaches

2.2.10 Another approach is a staged or tiered voluntary agreement. In this case the Partners agree

on a specific target and timetable; however, they also agree that if certain market conditions develop, a more

or less challenging goal would be pursued instead. These programmes can be structured by including two

different implementation dates for the two different targets.

2.2.11 Finally, an alternative approach is to establish a voluntary programme that requires the use

of specific technologies or the adoption of specific operating practices rather then a specified quantitative

goal. In such cases, the programmes by their very nature may be more prescriptive. 

3. BACKGROUND AND GENERAL PRINCIPLES

3.1 When developing a voluntary programme, Partners must recognize the need for uniform

understanding of the programme and recognition of what falls under the programme and what does not. A

clear and mutually understood definition of what constitutes fulfillment of the agreement is essential. All

Partners should be committed to meeting the goals and any terms established by the agreement.

3.2 Partners also must recognize that any voluntary agreement exists within the greater realm of

regulatory and non-regulatory commitments. Therefore, entering a voluntary agreement does not negate the

need to still comply with any applicable legally binding requirements.

3.3 Partners are expected to conduct, as appropriate, and share any necessary economic and

policy analysis. The types of analysis will likely vary according to the needs of the individual parties and the

degree to which more general analysis is readily available. A successful programme should seek to adopt

technically feasible, cost-effective and commercially available techniques and strategies for improving fuel

efficiency for aircraft and can be employed in a manner consistent with safety and security requirements.

4. INDUSTRY RESPONSIBILITIES

4.1 Emissions reduction

4.1.1 Several approaches to implementing voluntary agreements could be considered. For example,

partners could agree to undertake specific actions, or they could agree to achieve a quantitative goal without

stipulating in the agreement itself how the goal will be achieved. A further alternative is for the agreement
- 11 -

to set a target and provide a “menu” of options to limit or reduce emissions to meet the goal from which

relevant Partners can select.

4.1.2 The last approach has several distinct advantages. First, it permits individual companies to

analyze their unique situations and decide what options are most suited to their business objectives. Second,

it allows for sharing of ideas amongst the partners as the menu of options is developed and expanded over

time, should new options become possible. Third, it permits individual companies to utilize both technical

and operational solutions.

4.1.3 The options themselves in a menu could come from a variety of sources and include both

shorter and longer term technical and operations improvements. Engine and airframe manufacturers advance

technologies incrementally as well as by large-scale improvements. There are some opportunities available

today based on previous research efforts as well as after-market product development. Further, there is

potential for increased use of certain technologies such as winglets and “best operational practices” such as

those identified in Operational Opportunities to Minimize Fuel Use and Reduce Emissions – ICAO

Circular 303. These are summarized in the annex to the MOU and described below.

4.1.4 To meet the agreement’s goals, the partners will benefit from sharing information about

operational opportunities and technologies that are not considered confidential. The partners will want to

make their own assessments and decisions about technically feasible and cost-effective techniques and

strategies for improving fuel efficiency for aircraft in a manner consistent with all appropriate safety and

security requirements.

4.1.5 ICAO Circular 303 on operational practices focuses on a compilation of operational measures

that achieve near-term reductions in aircraft emissions, and in supporting ground operations. The circular is

based on the understanding that the most effective way to minimize aircraft emissions is to minimize the fuel

used in operating each flight. It identifies areas where improvements can be made. It is intended to inform

and describe the knowledge gained by the civil aviation industry and not to be used as the basis for any

regulatory action. According to the Circular 303 the operational opportunities and techniques to minimize

aircraft fuel use can be categorized as follows:

a) fly the most fuel efficient aircraft type for the sector;

b) taxi the most fuel efficient route;

c) fly the most fuel efficient route;

d) fly at the most fuel-efficient speed;

e) operate at the most economical altitude;

f) maximize the aircraft’s load factor;

g) minimize the empty weight of the aircraft; 

h) load the minimum fuel to safely complete the flight; 

i) minimize the number of non-revenue flights; and

j) maintain a clean and efficient airframe and engines.
- 12 -

4.1.6 There are other operational options (e.g., reduce aerodynamic drag through efficient

distribution of load) and technological options that should be considered as well. Clearly not all of these

options will necessarily be practicable or cost effective, but some may offer useful approaches to reducing

fuel use. Technological options could include:

a) installation of winglets on a greater number of aircraft;

b) engine retrofits and/or upgrades;

c) re-engining aircraft;

d) use of polished aircraft; and

e) more regular maintenance to correct aerodynamic deterioration.

4.1.7 Some of the options listed above are more easily accomplished by the airlines. However,

others require actions by other organizations that are not controlled by the airlines. For example, some options

may require the involvement of airline employee unions, air traffic controllers, manufacturers, or other

stakeholders. However, some airlines may find these options attractive and therefore choose to pursue them

with the appropriate stakeholders.

4.1.8 This template agreement also allows the flexibility for industry partners to meet their goals

through the purchase of emission reductions (or credits) from other sectors. Where appropriate, creditable

emissions reductions in other industry sectors through mechanisms such as emissions offsets or trading may

be considered. Partners will need to develop guidelines for what are and what are not creditable reductions.

4.2 Emissions reporting

4.2.1 Reporting should correspond directly to what the agreement is seeking to achieve. The

accompanying template requires that the industry partners report progress towards achieving the goal on an

annual basis. The reporting requirements are minimal and transparent. Ideally there will be global consistency

with reporting requirements and procedures.

4.2.2 Many airlines already collect data regarding their environmental performance for their

internal business planning purposes and some include detailed data as part of their public annual reports.

Generally, data collection should be a by-product of good environmental and management practices. The

more connected to the normal practices of the airline, the more likely the success of the data collection

processes. Data collection should not be cumbersome, and should assist with operating the voluntary

agreement. Therefore, the option included in the template seeks to build on current industry practices thus

reducing burden.

4.2.3 There are many different options with regards to the type of information a partner in a

voluntary programme may be asked to collect and report. However, it may be reasonable to limit requests.

Any data collected should be used to gauge progress under the agreement. Furthermore, the Partners should

establish safeguards (e.g., through aggregation) to limit how collected information may be used and to protect

information that may be considered sensitive.

4.2.4 The data collection should accurately reflect the degree of detail within the agreement. If an

agreement that varies significantly from the template includes actions that industry Partners agreed to

undertake under specified conditions or at specified times, then reasonably the Partners may be asked to keep
- 13 -

records or report all relevant action taken to permit an assessment of the success of the agreement. However,

a programme based on less specificity should require far less record-keeping and reporting, though still

sufficient to enable the effect of the agreement to be judged.

4.2.5 The partnership nature of voluntary agreements makes it almost imperative that this approach

produces publicly available reports of progress against commitments. Many existing voluntary programmes

release annual progress reports. The public at large, may be an important audience for these reports. Their

positive/negative reactions could be an added incentive for progress under an agreement. An important

consideration is the extent to which any data is made available for public scrutiny. These decisions will partly

depend on how detailed and commercially sensitive the agreements themselves are.

4.2.6 Appropriate procedures and practices for data collection improves reporting and can be used

to evaluate progress. The general public and interested parties such as environmental NGOs will likely review

available reports as well. The airline community itself will also have an interest in reviewing information. The

accompanying template requires that the industry partners report progress towards achievement of the goal

on an annual basis but recognizes the need to fully consider confidentially issues. The reporting requirements

are minimal and transparent.

4.3 Data quality

4.3.1 The industry partners will need to ensure the quality of the data reported. The template

suggests that each company will need to provide information concerning RTKs (and any other metrics as

agreed by the Partners) including a written explanation of the methodology used for the reporting.

4.3.2 To ensure continued confidence in the reliability of the reports, it may be apt for a qualified

auditor to be given access to audit the reports and supporting documentation. The partners will need to select

qualified auditors capable of independently verifying and auditing the reports for quality. The partners could

develop a list of potential auditors in advance of the agreement or on an ad hoc basis. It is also possible that

an international organization familiar with data collection may be available and agree to perform such

functions.

5. GOVERNMENT RESPONSIBILITIES

5.1 Support for emissions reductions efforts

5.1.1 Voluntary agreements require genuine commitment from all partners. Governments must be

willing to take a proactive role in seeking partners and establishing programmes. Governments must also

support the efforts, recognize the partners for their commitment, and to the extent possible, ensure that credit

for early action/baseline protection is provided, and in a harmonized approach across industries.

5.1.2 The template states that government partners should seek to address barriers that may impede

improvements in fuel efficiency. One such impediment could be regulatory action that results in trade-offs

between improvements in fuel efficiency and other emissions. Governments should seek to encourage actions

that if possible both reduce emissions and produce fuel efficiency gains.
- 14 -

5.2 Data quality

5.2.1 Governments should ensure that aviation emissions inventories are reliable, accurate, and

practical. Government partners should work with industry to develop agreed upon methodologies and

reporting formats to record and verify data and ensure that data are evaluated and reported in such a way as

to protect confidential business information.

5.3 Credit for early action/baseline protection

5.3.1 In Assembly Resolution A33-7 ICAO urges the Council to “work to ensure that those taking

early action would benefit from such action and would not subsequently be penalized for so doing.”

Government partners should ensure that proper credit is given to those that participate in voluntary efforts

to reduce or limit emissions. The accompanying template states that baseline protection or appropriate credit

should seek to be ensured in any future system established to reduce CO2 emissions from aviation.

5.4 Industrial and international harmonization

5.4.1 Governments should encourage the use of coordinated international approaches to limit or

reduce the environmental impacts of aviation. Such approaches should limit competitiveness issues. At the

same time, governments should also encourage the use of coordination across industrial sectors to limit or

reduce the environmental impacts of CO2 emissions.

6. OTHER ISSUES

6.1 Modification of an agreement

6.1.1 Both governments and industry are unlikely to sign agreements that do not allow responses

to changing economic and environmental circumstances. Given that flexibility is one of the main advantages

for voluntary approaches, mechanisms to modify agreements are important. The agreement should allow for

modification at request of either partner through a signed document. However, changes should only occur

if agreed to by both the partners. 

6.2 Termination

6.2.1 The progress reviews and modification provisions should always be used first to allow,

perhaps with agreed revisions, for the continuation rather than premature termination of an agreement where

possible. Nevertheless, terms should allow either party to terminate the agreement subject to reasonable

written notification. The template includes six months written notification, and assumes that if either partner

gives notice, a period of review and perhaps revisions could be agreed that would allow for the continuation

of the agreement rather than termination. 

6.3 Interim progress

6.3.1 The Partners should agree to publish reports on a regular schedule detailing the progress that

has been made toward achieving the goal. The aim of these reviews should be to assess progress to date, and,

if necessary, to determine whether and what actions are necessary to get the agreement back on track.

However, if fundamental changes have occurred, these reviews also provide an opportunity for the partners

to assess possible changes in the goal (either increases or decreases) or in the timeframe covered by the

agreement. Recent events that have dramatically impacted the industry underscore the need to periodically
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review progress and the applicability of the existing interim and final goals. However any changes to the

original agreement can only take place if agreed to by all the relevant partners.

6.3.2 The template suggests that the Partnership Goal and progress towards meeting the goal could

be used to inform meetings of the CAEP, its Steering Group, and all appropriate Working Groups regarding

the progress towards meeting the partnership goals.

6.4 Technical assistance

6.4.1 Auditors could provide assistance in data quality through auditing and could provide

technical assistance for individual partners regarding meeting the goals of the MOU. 

6.5 Role of third parties

6.5.1 While this MOU is envisioned as an agreement between governments and airlines clearly

there are potential roles for other parties. For example, governments may pursue agreements with these third

parties or the third parties may take direct or indirect action as a response to an agreement between airlines

and governments.

6.5.2 Aircraft manufacturers (including airframe and engine manufacturers) are critical to

achieving long term reductions in aviation emissions. Any agreement between governments and

manufacturers would look quite different to that with airlines - their actions in relation to achieving goals

would differ, complying with an agreement also would differ. However, it is possible that a side agreement

between airlines and manufacturers could be established; or that the airlines, as customers could urge the

development of new emission-reducing technologies by the manufacturers to assist the airlines in meeting

their commitments. Another example could include airports; especially those no longer owned or operated

by government. Airports could become partners in assisting airlines to comply with their obligations under

a side agreement. Or, governments could pursue agreements with airports that may urge modernization of

facilities perhaps including the electrification of gates to minimize emissions from auxiliary power units. Air

navigation service providers are obviously potentially important to the airlines’ ability to meet commitments

too. This is an area where governments could usefully consider taking steps to improve the contribution that

ATC makes to achieve emission reductions. 

6.6 Enforceability

6.6.1 The accompanying template is an MOU, which by nature is not enforceable. However, it is

believed that the governments and industry that are willing to enter into such agreement do so with the

intention of fully complying with all of the terms of such agreement.

6.6.2 If a legally binding agreement were used, it would include agreed enforceability provisions.

Such provisions could be financial, the introduction of more stringent regulatory programmes, or other

mechanisms. The remedies for non-compliance with such an agreement would be established prior to the

implementation of such an agreement.

6.7 Authority

6.7.1 Those entering into an agreement must have proper authority. Partners could be trade

associations, individual companies, regional government entities, individual national or international entities.
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ATTACHMENT

CHECKLIST

The following checklist may be used as a guide for establishing voluntary programmes.

C Policy Objective: Is there a clearly defined policy objective? 

C Partners: Are the Partners clearly identified? Are they legal entities? Can they negotiate in good faith a

potential agreement?

C Partnership Goal: Do the Partners agree on a quantifiable goal? Are base case, projections, and actions

required clearly defined and well understood by the Partners?

C Type of Agreement: Is an MOU or some other type of agreement appropriate?

C Arrangements for information exchange: Are recording and reporting mechanisms established and clear?

If necessary, are third-party auditors identified?

C Timetable: Is there a clear timetable for implementing the voluntary programme? Are the dates for all

reporting clearly identified? Are the dates for meeting the goal and dates for meeting any interim goals

established?

C Recognition of partners: Are the methods clear for recognizing the actions of the partners?

C Fulfilment of the Agreement: Are the terms of successful fulfilment of the agreement clear?

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