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WORKING PAPER

ASSEMBLY — 39TH SESSION
EXECUTIVE COMMITTEE
Agenda Item 22: Environmental Protection – International Aviation and Climate Change – Policy,
Standardization and Implementation Support
CONSOLIDATED STATEMENT OF CONTINUING ICAO POLICIES AND PRACTICES
RELATED TO ENVIRONMENTAL PROTECTION – GLOBAL MARKET-BASED MEASURE
(MBM) SCHEME
(Presented by the Council of ICAO)
EXECUTIVE SUMMARY
Submitted for adoption is a proposal for the Assembly Resolution text relating to a global market-based
measure (MBM) scheme, Consolidated statement of continuing ICAO policies and practices related to
environmental protection – Global Market-based Measure (MBM) scheme, which will supersede the
MBM-related provisions of Assembly Resolution A38-18, Consolidated statement of continuing ICAO
policies and practices related to environmental protection – Climate change.
The proposed Assembly Resolution text has been developed in light of the work of the Organization
towards the development of a global MBM scheme since the 38th Session of the Assembly. For
reference purpose, each paragraph of the proposed Assembly Resolution text is accompanied by
explanatory text.
Action: The Assembly is invited to:
a) acknowledge the activities undertaken by the Organization in response to the request of the
38th Session of the ICAO Assembly with respect to the development of a global MBM scheme for
international aviation, as summarized in Appendix A; and
b) adopt the proposed Assembly Resolution on the consolidated statement of continuing ICAO policies
and practices related to environmental protection – Global Market-based Measure (MBM) scheme,
presented in the Appendix B.
Strategic
Objectives:

This working paper relates to Strategic Objective E, Environmental Protection.

Financial
The activities referred to in this Assembly working paper will be undertaken subject to
implications: the resources available in the 2017 – 2019 Regular Programme Budget and/or from extra
budgetary contributions.
References:

Doc 10022, Assembly Resolutions in Force (as of 4 October 2013)

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1.

INTRODUCTION

1.1
The 38th Session of the ICAO Assembly in 2013, through Resolution A38-18
(paragraphs 18 and 19), decided to develop a global MBM scheme for international aviation, and
requested the Council, with the support of Member States, to:
a) finalize the work on the technical aspects, environmental and economic impacts and
modalities of the possible options for a global MBM scheme, including on its
feasibility and practicability, taking into account the need for development of
international aviation, the proposal of the aviation industry and other international
developments, as appropriate, and without prejudice to the negotiations under the
UNFCCC;
b) organize seminars, workshops on a global scheme for international aviation
participated by officials and experts of Member States as well as relevant
organizations;
c) identify the major issues and problems, including for Member States, and make a
recommendation on a global MBM scheme that appropriately addresses them and
key design elements, including a means to take into account special circumstances
and respective capabilities as provided for in paragraphs 20 to 24 below, and the
mechanisms for the implementation of the scheme from 2020 as part of a basket of
measures which also include technologies, operational improvements and sustainable
alternative fuels to achieve ICAO’s global aspirational goals; and
d) report the results of the work in sub-paragraphs a), b) and c) above, for decision by
the 39th Session of the Assembly.
1.2
Since the 38th Assembly, extensive efforts were made by the Organization, including the
establishment of the Environment Advisory Group (EAG) of the Council that held 15 meetings from
March 2014 to January 2016 to assess various approaches for a global MBM scheme, with technical
support provided by the Committee on Aviation Environmental Protection (CAEP) and the Secretariat.
1.3
In addition, the Secretariat conducted two rounds of Global Aviation Dialogues (GLADs)
during April 2015 and March-April 2016, covering all ICAO regions, to provide all States with
information on the relevant ICAO work and receive their feedback on the development of the scheme.
1.4
The EAG/15 meeting in January 2016 considered a draft Assembly Resolution text on a
global MBM scheme, which was developed taking into account the progress achieved and views
expressed during previous EAG deliberations. The Council endorsed the EAG recommendation to
establish the High-level Group on a Global MBM Scheme (HLG-GMBM), which met twice (February
and April 2016) to make progress towards improving and clarifying the draft Assembly Resolution text.
1.5
In May 2016, the High-level Meeting on a Global MBM Scheme (HLM-GMBM) was
convened to discuss the draft Assembly Resolution text and make recommendations, for consideration by
the Council to finalize the draft text, for submission to the 39th Session of the Assembly.
1.6
In August 2016, the Friends of the President meeting was convened to consider the
results of bilateral and multilateral consultations by States related to the draft Assembly Resolution text,
with a view to developing compromise text for consideration by the Council.
1.7
More detailed information on the work of the Organization on a global MBM scheme
since the 38th Session of the ICAO Assembly is provided in Appendix A.

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MAIN ISSUES

2.1
The approach for phased implementation of a global MBM scheme would be on the basis
of voluntary participation by States in the pilot phase (from 2021 through 2023) and first phase (from
2024 through 2026), followed by the second phase (from 2027 through 2035) in which all other States
except for exempted ones would participate.
2.2
In operationalizing this approach, the following issues were considered: 1) options for
States that participate in the pilot phase; 2) scope of exemptions for the second phase; 3) review of the
phased implementation; 4) dynamic approach for distribution of offsetting requirements; 5) baseline
emissions for calculation of offsetting requirements.
Options for States that participate in the pilot phase
2.3
Some States expressed the view that offset requirements during the pilot phase (from
2021 through 2023) should be calculated on the basis of Nationally Determined Contributions by each
participating State. There was convergence of views that, for the pilot phase, each participating State
could choose the basis of calculating their operator’s offsetting requirements from two options: either the
operator’s emissions in a given year (i.e. 2021, 2022 and 2023) or the operator’s emissions referring back
to a single year of 2020.
2.4
In addition, there should not be a list of volunteer States attached to the Assembly
Resolution itself, and the Secretariat would make public updated information on the States that
volunteered to participate in the pilot and first phases. Those States that notify to voluntarily participate in
the scheme (opt-in) should also be able to voluntarily opt-out from the scheme, as reflected in paragraphs
7 c) and 7 e).
Scope of exemptions for the second phase
2.5
Regarding the scope of exemptions from the second phase of the scheme in paragraph 7
of the draft Assembly Resolution text, there was convergence of views on the exemptions applied to Least
Developed Countries (LDCs), Small Island Developing States (SIDS) and Landlocked Developing
Countries (LLDCs). Convergence of views was also reached on the exemptions to additional States on the
basis of an individual share of international aviation activities in RTKs in year 2018 below 0.5 per cent of
total RTKs or cumulative share of 90 per cent RTKs. It was noted that exempted States are encouraged to
voluntarily participate in the scheme.
Review of the phased implementation
2.6
The importance of the periodic review of the CORSIA every three years starting in 2022
was highlighted, which will allow the Council to make informed decisions on whether it is necessary to
make adjustments to the next phases of the scheme. The importance of providing clarity to design
elements of the scheme from 2021 through 2035 as a package was also highlighted.
Dynamic approach for distribution of offsetting requirements
2.7
The concept of a dynamic approach for the distribution of offsetting requirements
(paragraph 9 of the draft Assembly Resolution text) was considered, starting from 100 per cent sectoral
rate (and 0 per cent individual rate) and moving gradually to higher percentages of an individual rate,
starting from the second compliance cycle of the second phase, as follows:

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-4a) for the pilot and first phases as well as the first compliance cycle of the second phase
(from 2021 through 2029), 100 per cent sectoral rate (and 0 per cent individual rate)
would be applied; and
b) from the second compliance cycle of the second phase, at least 20 per cent individual
rate would be applied from 2030 to 2032; and at least 70 per cent individual rate
would be applied from 2033 to 2035.

2.8
Some States were of the view that the percentages of sectoral and individual rates in the
later compliance cycles of the second phase would need further consideration of their implications.
Baseline emissions for calculation of offsetting requirements
2.9
Regarding the baseline emissions of operators to calculate annual increase of emissions,
and thus to calculate offsetting requirements (paragraph 9 of the draft Assembly Resolution text), there
was convergence of views on the use of average emissions covered by CORSIA “between 2019 and
2020”, taking into account the time needed for the development and implementation of MRV features.
Other Issues
2.10
States also exchanged views on whether it would be necessary to specify which States are
expected to take the lead by voluntarily participating in the scheme. Two proposals for new Assembly
Resolution text under paragraph 7 were considered:
a) some States were of the view that the Assembly Resolution text should encourage
developed States to take the lead, as follows:
“All States are strongly encouraged to voluntarily participate in the scheme,
recognizing that the developed States will take the lead;”
b) Other States felt that such a call for voluntary participation should be addressed to all
States, on account of the fact that some developing States had already informed of
their intention to voluntarily participate in the pilot phase, thus taking the lead
themselves, as follows:
“Urges all States to voluntarily participate in the pilot phase and first phase of the
scheme, recognizing that developed States and some developing States are taking the
lead;”.
2.11

Further consultations would be needed toward possible compromise text on this issue.

2.12
It was also recognized that the work in the areas of: Monitoring, Reporting and
Verification (MRV); Emissions Unit Criteria (EUC); and Registries will continue after the Assembly, and
technical material will be developed by CAEP. Therefore, current text should not go into unnecessary
prescriptive details. In this regard, the importance of sharing information on further progress of technical
work and providing adequate capacity building for implementation to all States was emphasized. The
importance of linkage between ICAO’s work and the work under the UNFCCC process was also
emphasized, while recognizing that the Paris Agreement has not yet entered into force. The following
paragraph was considered for the draft Assembly Resolution text, but there were different views with
regard to what extent such linkage should be reflected in the text, and further consultations would be
needed toward possible compromise text on this issue:

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“17bis. Decides that emissions units generated from mechanisms established under the
UNFCCC and the Paris Agreement are eligible for use in CORSIA, provided that they
align with decisions by the Council, with the technical contribution of CAEP, on eligible
vintage and timeframe; {Eligible emissions units} ”.
2.13
Regarding paragraph 4 of the draft Assembly Resolution text on the implementation of a
global MBM scheme, some States were of the view that other options for a global MBM scheme should
not be excluded for further evaluation, proposing specific amendments to draft text:
“4.
Decides to implement and evaluate a GMBM scheme in the form of the Carbon
Offsetting and Reduction Scheme for International Aviation (CORSIA) as one of the
possible options to address any annual increase in total CO2 emissions from international
civil aviation (i.e. civil aviation flights that depart in one country and arrive in a different
country) above the 2020 levels, taking into account special circumstances and respective
capabilities; {GMBM is Carbon Offsetting and Reduction Scheme for International
Aviation (CORSIA)} ”
2.14
There were different views on the proposed amendments above, as a number of different
options for a global MBM scheme had been considered and evaluated prior to the decision on the
CORSIA, and that further evaluation would be undertaken as part of its review process following the
implementation of the scheme. Therefore, the Council decided to maintain paragraph 4 of the draft
Assembly Resolution text as contained in Appendix B, and further consultations would be needed toward
possible compromise text on this issue.

3.

CONCLUSION

3.1
Significant work has been undertaken by ICAO and its Member States, in cooperation with the
aviation industry and other stakeholders, in responding to the request by the 38th Session of the Assembly
to develop a global MBM scheme for international aviation. The Appendix B to this working paper
presents the draft Assembly Resolution text, for consideration by the 39th Session of the Assembly.
Among others, paragraph 7 (phased implementation) and paragraph 9 (distribution of offsetting
requirements) of the draft text continue to be the most crucial component that the Assembly is invited to
further consider, together with other issues described in paragraph 2 above, with a view to adopting the
best possible consensus text at the Assembly toward the full operationalization of the scheme.
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Appendix A

APPENDIX A
ICAO WORK ON THE DEVELOPMENT OF
A GLOBAL MARKET-BASED MEASURE (MBM) SCHEME

1.

ENVIRONMENT ADVISORY GROUP

1.1
Following the 38th Assembly, the ICAO Council established the Environment Advisory
Group (EAG), which was composed of 17 Council Members to oversee all work related to the
development of a global MBM scheme, with technical support provided by CAEP and the Secretariat.
The EAG held 15 meetings from March 2014 to January 2016.
1.2
The EAG achieved initial progress using a “Strawman” approach, which started with a
basic proposal for a global MBM scheme with a view to generating discussion and analyses on
advantages and disadvantages of design elements thus allowing for improvements of the Strawman
proposal.
1.3
The initial set of technical analyses on the Strawman proposal requested by the EAG and
Council included the assessment of: volumes of future CO2 emissions from international aviation and
overall cost impacts to achieve the carbon neutral growth from 2020; cost impacts of using combinations
of the individual operator’s growth factor of emissions and the international aviation sector’s average
growth factor, for distribution of offsetting requirements; adjustments of offsetting requirements, such as
for fast growers, early movers and new entrants; and technical exemptions and exemptions of routes
to/from low emitting States. The CAEP completed the initial analyses and presented the related results to
the EAG/7 meeting in October 2014.
1.4
Additional analyses were requested in late 2014 that focused on the assessment of various
approaches for distribution of offsetting requirements, including:
a) refinement of technical analyses presented to the EAG/7 meeting, including the use
of variable (dynamic) growth factors over time;
b) analyses of a route-based approach, including the definition of routes, using different
criteria, as well as metrics for categorization of routes;
c) analyses of an accumulative approach based on historical emissions; and
d) comparison of various approaches for distribution of offsetting requirements.
1.5
The CAEP completed the additional analyses and presented the results of all technical
analyses to the EAG/15 meeting in January 2016.
1.6
In addition, the EAG was frequently kept updated of CAEP’s work in developing
recommendations on technical design elements of a global MBM scheme, namely: Monitoring, Reporting
and Verification (MRV); Emissions Unit Criteria (EUC); and Registries. The CAEP/10 meeting in
February 2016 accepted the recommendations, as submitted to the meeting, to be used as the basis of
CAEP future work, and subject to further decisions on a global MBM scheme by the Council and the
39th Assembly.

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Appendix A

2.

A-2

HIGH-LEVEL GROUP AND DRAFT ASSEMBLY
RESOLUTION TEXT

2.1
The EAG/15 meeting in January 2016 considered a draft Assembly Resolution text on a
global MBM scheme, which was developed taking into account the progress achieved and views
expressed during previous EAG deliberations.
2.2
The EAG/15 meeting recommended, and the Council endorsed, that a High-level Group
on a Global MBM Scheme (HLG-GMBM) be established to facilitate the convergence of views in order
to finalize draft Assembly Resolution text on a global MBM scheme, to be later considered by the
Council. The Group was composed of high-level aviation and/or transport representatives of
18 Member States of the Council, taking into account geographical representation.
2.3
The High-level Group met twice (24 to 25 February and 13 to 15 April 2016) to review
the draft Assembly Resolution text, and make progress towards improving and clarifying a number of
provisions in the draft text. The Group recognized that paragraphs 7, 8 and 9 of draft Assembly
Resolution text would be the most crucial component for which divergent views remained, and for which
all States were encouraged to undertake bilateral and multilateral consultations with other States with a
view to bridging the views and developing possible compromise text, to be presented to the High-level
Meeting in May 2016 (see paragraph 4).

3.

GLOBAL AVIATION DIALOGUES

3.1
In response to the Assembly request to organize seminars and workshops on a global
MBM scheme for international aviation (A38-18, paragraph 19 b)), the Secretariat concluded two rounds
of Global Aviation Dialogues 1 (GLADs) during April 2015 and March-April 2016, covering all ICAO
regions. The objective of the GLADs were to: share information regarding MBMs and their role in a
basket of measures to address CO2 emissions from international aviation; provide up-to-date information
on the ICAO work to develop a global MBM scheme; familiarize participants with the draft Assembly
Resolution text; provide opportunities to receive feedback from Member States and relevant
organizations; and serve as preparation for the High-level Meeting (see paragraph 5) and subsequently for
the 39th Assembly.
3.2
The major considerations for the design of a global MBM scheme, as identified during
the 2015 GLADs, such as administrative simplicity, environmental integrity, cost effectiveness and
differentiation/non-discrimination, were highlighted in the 2016 GLADs as being closely linked to
specific paragraphs of the draft Assembly Resolution text, in particular paragraphs 7 (phased
implementation), 8 (route-based exemptions) and 9 (distribution of offsetting requirements). Most
participants indicated that the draft text would be a good basis to move forward, while further
improvements and clarification of text would be needed, in particular those paragraphs specified above.
3.3
The participants also discussed the roles of different stakeholders and there was high
commonality in all GLADs in their roles for various aspects of implementing a global MBM scheme,
such as MRV system and Registries. There was also convergence on the need for ICAO to provide
capacity building and training, as well as the need for Standards, guidance, tools, toward the full
implementation of a scheme.

1

All material related to 2015 and 2016 GLADs is available at: http://www.icao.int/meetings/GLADs-2015/Pages/default.aspx
and http://www.icao.int/Meetings/GLADs-2016/Pages/default.aspx, respectively.

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Appendix A

HIGH-LEVEL MEETING ON A GLOBAL MBM SCHEME

4.1
The High-level Meeting on a Global MBM Scheme 2 (HLM-GMBM) was convened in
Montréal, Canada from 11 to 13 May 2016 to discuss draft Assembly Resolution text on a global MBM
scheme and make recommendations to the Council. The Meeting was attended by 311 representatives
from 65 Member States and 17 international organizations.
4.2
The Meeting clarified and improved a number of provisions in the draft text, while it
recognized a number of concerns and possible alternative approaches and ideas, in particular for
paragraph 7 (phased implementation) and paragraph 9 (distribution of offsetting requirements).
4.3
The Meeting recognized that paragraphs 7 and 9 of the draft Assembly Resolution text
would continue to be the most crucial component that remained divergent views, for which Member
States were encouraged to continue bilateral and multilateral consultations to bridge their views and find
possible compromise text.

5.

FRIENDS OF THE PRESIDENT INFORMAL GROUP MEETING

5.1
The Friends of the President Informal Group Meeting 3 was convened in Montréal,
Canada from 22 to 23 August 2016 to consider the results of the bilateral and multilateral consultations by
States related to the draft Assembly Resolution text, in particular related to paragraphs 7 and 9 of draft
text, with a view to developing compromise text for consideration by the Council.
5.2
Based on the outcome of bilateral and multilateral consultations that had taken place prior
to the meeting, a new approach for the phased implementation was presented and well-received by the
meeting: voluntary participation by States in the pilot phase (from 2021 through 2023) and first phase
(from 2024 through 2026), followed by the second phase (from 2027 through 2035) in which all other
States except for exempted ones will participate.
5.3
The meeting focused on how to operationalize the approach, and concentrated its
discussion on the following five issues: 1) options for States that participate in the pilot phase; 2) scope of
exemptions for the second phase; 3) review of the phased implementation; 4) dynamic approach for
distribution of offsetting requirements; 5) baseline emissions for calculation of offsetting requirements.
The results of the meeting were reported to the Council, for its consideration in approving the draft
Assembly Resolution text, for submission to the 39th Session of the Assembly.

————————

2
3

All material related to HLM-GMBM is available at: http://www.icao.int/Meetings/HLM-MBM/Pages/default.aspx
All material related to Friends of the President Informal Group Meeting is available at:
http://www.icao.int/Meetings/GMBMFP/Pages/default.aspx

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Appendix B

APPENDIX B
Resolution A39-XX: Consolidated statement of continuing ICAO policies and practices related to
environmental protection – Global Market-based Measure (MBM) scheme
Whereas Assembly Resolution A38-18 decided to develop a global market-based measure
(GMBM) scheme for international aviation, for decision by the 39th Session of the Assembly; {Existing
text from A38-18, paragraph 18}
Recalling that Assembly Resolution A38-18 requested the Council, with the support of Member
States, to finalize the work on the technical aspects, environmental and economic impacts and modalities
of the possible options for a GMBM scheme, including on its feasibility and practicability, taking into
account the need for development of international aviation, the proposal of the aviation industry and other
international developments, as appropriate, and without prejudice to the negotiations under the UNFCCC;
{Existing text from A38-18, paragraph 19 a)}
Also recalling that Assembly Resolution A38-18 requested the Council, with the support of
Member States, to identify the major issues and problems, including for Member States, and make a
recommendation on a GMBM scheme that appropriately addresses them and key design elements,
including a means to take into account special circumstances and respective capabilities, and the
mechanisms for the implementation of the scheme from 2020 as part of a basket of measures which also
include technologies, operational improvements and sustainable alternative fuels to achieve ICAO’s
global aspirational goals; {Existing text from A38-18, paragraph 19 c)}
Recognizing that ICAO is the appropriate forum to address emissions from international aviation,
and the significant amount of work undertaken by the Council, its Environment Advisory Group (EAG)
and its Committee on Aviation Environmental Protection (CAEP) to develop a recommendation for a
GMBM scheme and its design elements and implementation mechanisms, including the analyses of
various approaches for distribution of obligations; {New text to reflect the work since A38}
Further recalling that Assembly Resolution A38-18 requested the Council, with the support of
Member States, to organize seminars, workshops on a GMBM scheme for international aviation
participated by officials and experts of Member States as well as relevant organizations; {Existing text
from A38-18, paragraph 19 b)}
Recognizing the convening of two rounds of Global Aviation Dialogues (GLADs) seminars held
in 2015 and 2016 for all regions; {New text to reflect the work since A38}
Noting the support of the aviation industry for a single global carbon offsetting scheme, as
opposed to a patchwork of State and regional MBMs, as a cost effective measure to complement a
broader package of measures including technology, operations and infrastructure measures; {Existing
text from A38-18 preamble}
Recognizing that MBMs should not be duplicative and international aviation CO2 emissions
should be accounted for only once; {Based on text from A38-18, Annex paragraph f) }
Emphasizing that the decision by the 38th Session of the Assembly to develop a global MBM
scheme for international aviation reflects the strong support of Member States for a global solution for the
international aviation industry, as opposed to a possible patchwork of State and regional MBMs;
{Reflecting the background for a global solution compared to patchwork of MBMs}

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Appendix B

B-2

Reaffirming the concern with the use of international civil aviation as a potential source for the
mobilization of revenue for climate finance to the other sectors, and that MBMs should ensure the fair
treatment of the international aviation sector in relation to other sectors; {Based on text from A38-18,
paragraph 30, and guiding principle h)}
Recalling the UNFCCC and the Paris Agreement and acknowledging its principle of common but
differentiated responsibilities and respective capabilities, in light of different national circumstances;
{Updated to reflect Paris Agreement }
Also acknowledging the principles of non-discrimination and equal and fair opportunities to
develop international aviation set forth in the Chicago Convention; {Existing text from A38-18 preamble}
Welcoming the adoption of the Paris Agreement under the UNFCCC and recognizing that the
work related to a global MBM scheme for international aviation and its implementation will contribute to
the achievement of the goals set out in the Paris Agreement; {Recognition of the Paris Agreement}
Whereas the UNFCCC and the Paris Agreement provide for mechanisms, such as the Clean
Development Mechanism (CDM) and a new market mechanisms under the Paris Agreement, to contribute
to the mitigation of GHG emissions to support sustainable development, which benefit developing States
in particular; {New text reflecting Paris Agreement}
Welcoming the cooperation between the United Nations Framework Convention on Climate
Change (UNFCCC) and ICAO on the development of CDM methodologies for aviation; {New text on
CDM methodologies}
The Assembly:
1.
Resolves that this Resolution, together with Resolution A39-YY: Consolidated statement of
continuing ICAO policies and practices related to environmental protection - General provisions, noise
and local air quality and Resolution A39-ZZ: Consolidated statement of continuing ICAO policies and
practices related to environmental protection – Climate change, supersede Resolutions A38-17 and A3818 and constitute the consolidated statement of continuing ICAO policies and practices related to
environmental protection;
1bis. Acknowledges the progress achieved on all elements of the basket of measures available to
address CO2 emissions from international aviation, including aircraft technologies, operational
improvements, sustainable alternative fuels and a GMBM scheme and any other measures, and affirms the
preference for the use of aircraft technologies, operational improvements and sustainable alternative fuels
that provide the environmental benefits within the aviation sector; {Basket of measures and preference
for non-MBM measures}
2.
Also acknowledges that, despite this progress, the environmental benefits from aircraft
technologies, operational improvements and sustainable alternative fuels may not deliver sufficient CO2
emissions reductions to address the growth of international air traffic, in time to achieve the global
aspirational goal of keeping the global net CO2 emissions from international aviation from 2020 at the
same level; {Recognition of not achieving CNG 2020 by non-MBM measures}
3.
Emphasizes the role of a GMBM scheme to complement a broader package of measures to
achieve the global aspirational goal, without imposing inappropriate economic burden on international
aviation; {Complementary role of GMBM to achieve CNG 2020}

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Appendix B

B-3

4.
Decides to implement a GMBM scheme in the form of the Carbon Offsetting and Reduction
Scheme for International Aviation (CORSIA) to address any annual increase in total CO2 emissions from
international civil aviation (i.e. civil aviation flights that depart in one country and arrive in a different
country) above the 2020 levels, taking into account special circumstances and respective capabilities;
{GMBM is Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)}
5.
Requests the Council to continue to ensure all efforts to make further progress on aircraft
technologies, operational improvements and sustainable alternative fuels be taken by Member States and
reflected in their action plans to address CO2 emissions from international aviation, and to monitor and
report the progress on implementation of action plans, and that a methodology should be developed to
ensure that an aircraft operator’s offsetting requirements under the scheme in a given year can be reduced
through the use of sustainable alternative fuels, so that all elements of the basket of measures are
reflected; {Further progress on non-MBM measures}
5bis. Request the Council to continuously monitor the implementation of all elements of the basket of
measures, and consider the necessary policies and actions to ensure that progress is achieved in all of the
elements in a balanced way with an increasing percentage of emissions reductions accruing from nonMBM measures over time;
6.
Acknowledges special circumstances and respective capabilities of States, in particular developing
States, in terms of vulnerability to the impacts of climate change, economic development levels, and
contributions to international aviation emissions, among other things, while minimizing market distortion;
{Recognition of special circumstances of States} – Support Differentiation
7.
Decides the use of a phased implementation for the CORSIA to accommodate the special
circumstances and respective capabilities of States, in particular developing States, while minimizing
market distortion, as follows: {Phased implementation} – Support Differentiation
a)

Pilot phase applies from 2021 through 2023 to States that have volunteered to participate in the
scheme. States participating in this phase may determine the basis of their aircraft operator’s
offsetting requirements from paragraph 9 e) i) below; {Pilot phase for volunteer States, with
options for calculation of offsetting requirements}

b)

First phase applies from 2024 through 2026 to States that voluntarily participate in the pilot
phase, as well as any other States that volunteer to participate in this phase, with the calculation of
offsetting requirements in paragraph 9 a) below; {1st phase for volunteer States}

c)

The Secretariat will make public on the ICAO website updated information on the States that
volunteered to participate in the pilot phase and first phase; {Update of information reflecting
voluntary participation}

d)

Second phase applies from 2027 through 2035 to all States that have an individual share of
international aviation activities in RTKs in year 2018 above 0.5 per cent of total RTKs or whose
cumulative share in the list of States from the highest to the lowest amount of RTKs reaches 90
per cent of total RTKs, except Least Developed Countries (LDCs), Small Island Developing
States (SIDS) and Landlocked Developing Countries (LLDCs) unless they volunteer to
participate in this phase; {2nd phase for all States with 0.5%, 90% RTK, with exemptions of
LDCs, SIDS and LLDCs unless they volunteer}

e)

States that are exempted or have not yet participated are strongly encouraged to voluntarily

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Appendix B

B-4

participate in the scheme as early as possible, in particular those States that are members of a
regional economic integration organization. States who decide to voluntarily participate in the
scheme, or decide to discontinue the voluntary participation from the scheme, may only do so
from 1 January in any given year and they shall notify ICAO of their decision by no later than 30
June of the preceding year; {Voluntary participation, and 6 month notification}
f)

Starting in 2022, the Council will conduct a review of the implementation of the CORSIA every
three years, including its impact on the growth of international aviation, which serves as an
important basis for the Council to consider whether it is necessary to make adjustments to the
next phase or compliance cycle and, as appropriate, to recommend such adjustments to the
Assembly for its decision; {Review for adjustments}

8.
Decides that the CORSIA shall apply to all aircraft operators on the same routes between States
with a view to minimizing market distortion, as follows:
a)

all international flights on the routes between States, both of which are included in the CORSIA
by paragraph 7 above, are covered by the offsetting requirements of the CORSIA;

b)

all international flights on the routes between a State that is included in the CORSIA and another
State that is not included in the CORSIA by paragraph 7 above are exempted from the offsetting
requirements of the CORSIA, while retaining simplified reporting requirements; and – Support
Differentiation

c)

all international flights on the routes between States, both of which are not included in the
CORSIA by paragraph 7 above, are exempted from the offsetting requirements of the CORSIA,
while retaining simplified reporting requirements; {Minimize market distortion} – Support
Differentiation

9.
Decides that the amount of CO2 emissions required to be offset by an aircraft operator in a given
year from 2021 is calculated every year as follows:
a) an aircraft operator’s offset requirement = [ % Sectoral × (an aircraft operator’s emissions
covered by CORSIA in a given year × the sector’s growth factor in the given year)] + [ %
Individual × (an aircraft operator’s emissions covered by CORSIA in a given year × that aircraft
operator’s growth factor in the given year);
b) where the sector’s growth factor = (total emissions covered by CORSIA in the given year –
average of total emissions covered by CORSIA between 2019 and 2020) / total emissions covered
by CORSIA in the given year;
c) where the aircraft operator’s growth factor = (the aircraft operator’s total emissions covered by
CORSIA in the given year – average of the aircraft operator’s emissions covered by CORSIA
between 2019 and 2020 ) / the aircraft operator’s total emissions covered by CORSIA in the
given year;
d) where the % Sectoral = (100% – % Individual) and;
e) where the % Sectoral and % Individual will be applied as follows:
i)

from 2021 through 2023, 100% sectoral and 0% individual, though each participating State

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may choose during this pilot phase whether to apply this to:
a) an aircraft operator’s emissions covered by CORSIA in a given year, as stated above, or
b) an aircraft operator’s emissions covered by CORSIA in 2020;
ii)

from 2024 through 2026, 100 % sectoral and 0% individual;

iii) from 2027 through 2029, 100 % sectoral and 0% individual;
iv) from 2030 through 2032, at least 20% individual, with the Council recommending to the
Assembly in 2028 whether and to what extent to adjust the individual percentage;
v)

from 2033 through 2035, at least 70% individual, with the Council recommending to the
Assembly in 2028 whether and to what extent to adjust the individual percentage;

f) the aircraft operator’s emissions and the total emissions covered by CORSIA in the given year do
not include emissions exempted from the scheme in that year;
g) the scope of emissions in paragraphs 9 b) and 9 c) above will be recalculated at the start of each
year to take into account routes to and from all States that will be added due to their voluntary
participation or the start of a new phase or compliance cycle; {Distribution with dynamic
approach} – Support Differentiation
10.
Decides that a new entrant 4 is exempted from the application of the CORSIA for three years or
until the year in which its annual emissions exceed 0.1 per cent of total emissions in 2020, whichever
occurs earlier. From the subsequent year, the new entrant is included in the scheme and treated in the
same way as the other aircraft operators. {New entrants} – Support Differentiation
11.
Decides that, notwithstanding with the provisions above, the CORSIA does not apply to low
levels of international aviation activity with a view to avoiding administrative burden: aircraft operators
emitting less than 10,000 metric tonnes of CO2 emissions from international aviation per year; aircraft
with less than 5,700 kg of Maximum Take Off Mass (MTOM); or humanitarian, medical and firefighting
operations; {Technical exemptions}
12.
Decides that the emissions that are not covered by the scheme, as the results of phased
implementation and exemptions, are not assigned as offsetting requirements of any aircraft operators
included in the scheme; {No redistribution of exempted emissions} – Support Differentiation
13.
Notes the work of the Council, with the technical contribution of CAEP, on: a) the monitoring,
reporting and verification (MRV) system; b) recommended criteria for emissions units to be purchased by
aircraft operators that take into account developments in the UNFCCC process; c) and registries under the
CORSIA, and requests the Council, with the technical contribution of CAEP, to complete its work as
soon as possible including the provision of capacity building and assistance, so as to enable the full
implementation of the CORSIA from 2020; {MRV, EUC, Registries – CAEP recommendations}

4

A new entrant is defined as any aircraft operator that commences an aviation activity falling within the scope of the scheme on
or after its entry into force and whose activity is not in whole or in part a continuation of an aviation activity previously
performed by another aircraft operator.

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14.
Decides a three year compliance cycle, starting with the first cycle from 2021 to 2023, for aircraft
operators to reconcile their offsetting requirements under the scheme, while they report the required data
to the authority designated by the aircraft operator’s State of registry every year; {Compliance cycle}
15.
Decides on the need to provide for safeguards in the CORSIA to ensure the sustainable
development of the international aviation sector and against inappropriate economic burden on
international aviation, and requests the Council to decide the basis and criteria for triggering such action
and identify possible means to address these issues; {Cost safeguard}
16.
Decides that a periodic review of the CORSIA is undertaken by the Council, for consideration by
the Assembly, every three years from 2022 for the purpose referred to in paragraph 7 f) above and to
contribute to the sustainable development of the international aviation sector and the effectiveness of the
scheme. This will involve, inter alia:
a)

assessment of: progress towards achieving the ICAO’s global aspirational goal; the scheme’s
market and cost impact on States and aircraft operators and on international aviation; and the
functioning of the scheme’s design elements;

b)

consideration of the scheme’s improvements that would support the purpose of the Paris
Agreement, in particular its long-term temperature goals; and update the scheme’s design
elements to improve implementation, increase effectiveness, and minimize market distortion,
taking into account the consequential impact of changing the scheme’s design elements, e.g., to
MRV requirements; and

c)

a special review by the end of 2032 on termination of the scheme, its extension or any other
improvements of the scheme beyond 2035, including consideration of the contribution made by
aircraft technologies, operational improvements and sustainable alternative fuels towards
achieving the ICAO’s environmental objectives; {Duration and Review}

16bis. Determines that the CORSIA or any other scheme decided by the Assembly is to be the marketbased measure applying to CO2 emissions from international aviation; {No duplicative application of
MBMs beyond CORSIA}
17.
Requests the following actions be taken, with a view to establishing necessary mechanisms for
implementation of the CORSIA from 2020:
Regarding the implementation of the MRV system,
a)

the Council to develop, with the technical contribution of CAEP, the SARPs and related guidance
material for the implementation of the MRV system under the CORSIA, including simplified
MRV procedures, for adoption by the Council by 2018; {MRV rules development}

b)

all Member States whose aircraft operator undertakes international flights to develop the
necessary arrangements, in accordance with the MRV SARPs, for implementation from 1 January
2019; {MRV rules implementation}

Regarding the Emissions Unit Criteria (EUC),
c)

the Council to develop, with the technical contribution of CAEP, the SARPs and related guidance
material for Emissions Unit Criteria (EUC) to support the purchase of appropriate emissions units

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by aircraft operators under the scheme, taking into account relevant developments in the
UNFCCC and Article 6 of the Paris Agreement, for adoption by the Council as soon as possible
but not later than 2018; {EUC guidance development}
d)

the Council to establish, with the technical contribution of CAEP, a standing technical advisory
body on the Emissions Unit Criteria (EUC) to make recommendations to the Council on the
eligible emissions units for use by the CORSIA; {Eligible programmes}

e)

the Council, with the technical contribution of CAEP, to periodically review the EUC SARPs and
related guidance material, as appropriate, to promote compatibility with future relevant decisions
under the Paris Agreement; {EUC review}

Regarding the establishment of Registries,
f)

the Council to develop, with the technical contribution of CAEP, policies and related guidance
material to support the establishment of registries under the scheme, for adoption by the Council
by 2018; {Registry guidance development}

g)

the Council to establish a consolidated central registry under the auspices of ICAO, for
operationalization no later than 1 January 2021; {Central registry establishment}

h)

Member States to develop necessary arrangements for the establishment of their own registries or
group registries established by groups of States, or to arrange for participation in other registries,
in accordance with the ICAO guidance; {Registry establishment for States}

Regarding the governance of the CORSIA,
i)

the Council to oversee the functioning of the CORSIA, with support provided by the standing
technical advisory body and CAEP as needed; {Governance}

Regarding the regulatory framework,
j)

Member States to take necessary action to ensure that the necessary national policies and
regulatory framework be established for the compliance and enforcement of the scheme by 2020.
{Regulatory framework}

18.
Decides that ICAO and Member States take all necessary actions in providing the capacity
building and assistance and building partnerships for implementation of the CORSIA from 2020,
including: – Support Differentiation
Regarding the implementation of the MRV system,
a)

the Council to take necessary action to expand the provision of capacity building and assistance
for the preparation and implementation on Member States’ action plans, in order to accommodate
capacity building and assistance for implementation of the MRV system by Member States from
1 January 2019, including organization of seminars and training in all regions from 2017, and
facilitation of financial support where needed, in particular for those States that volunteer to
participate in the pilot phase and require support to do so; {Capacity building on MRV}

b)

Member States to build partnerships among themselves to cooperate on the implementation of the

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MRV system; {Partnerships on MRV}
Regarding the establishment of Registries,
c)

the Council to take necessary action to expand the provision of capacity building and assistance
for the preparation and implementation on Member States’ action plans, in order to accommodate
capacity building and assistance for establishment of registries by States, including organization
of seminars and training in all regions from 2017, and facilitation of financial support where
needed, in particular for those States that volunteer to participate in the pilot phase and require
support to do so; {Capacity building on Registry }

d)

Member States to build partnerships among themselves to cooperate on the establishment of their
own registries or group registries established by groups of States, and possible pilot
implementation; {Partnerships on Registry}

19.
Decides that the CORSIA will use emissions units that meet the Emissions Unit Criteria (EUC) in
paragraph 17 above; {Eligible emissions units}
19bis. Requests the Council to promote the use of emissions units generated that benefit developing
States, and encourages States to develop domestic aviation-related projects; {Further actions on the use
of emissions units} – Support Differentiation
20.
Requests the Council to explore further development of aviation-related methodologies for use in
offsetting programmes, including mechanisms or other programmes under the UNFCCC, and encourages
States to use such methodologies in taking actions to reduce aviation CO2 emissions, which could further
enable the use of credits generated from the implementation of such programmes by the CORSIA,
without double-counting of emissions reduction; {Further actions on aviation-related methodologies }

— END —