1

THE WAY FORWARDHONG KONG, SEPTEMBER 2011

Commitment on climate change

Geneva, 2008

The four-pillar strategy

1) Invest in new technology Including sustainable aviation biofuels

2) Fly using more efficient operations

3) Build and use efficient infrastructure

4) Use effective economic measures

Global industry targets

2010 2020 20501.5% p/a fuel efficiency

Working towards CNG

CNG from 2020

Implementation of global sectoral approach

50% reduction in net CO2 emissions over 2005 levels

• Goals are at the global level – not States or operators

• Goals do not mean slowing down the growth of aviation

2005 20502020

No action

2030 2040

-50% by 2050

CO2

emissions

2010

“Frozen technology” emissions

Gross emissions trajectory

(schematic)

CNG 2020

Emissions reduction roadmap

2005 20502020

TechOpsInfra

No action

2030 2040

-50% by 2050

CO2

emissions

2010

“Frozen technology” emissions

Known technology, operations and infrastructure measures

Carbon-neutral growth 2020

Gross emissions trajectory

CNG 2020

(schematic)

Emissions reduction roadmap

2005 20502020

TechOpsInfra

No action

CNG 2020

2030 2040

-50% by 2050

CO2

emissions

2010

“Frozen technology” emissions

Known technology, operations and infrastructure measures

Biofuels and additional technology

Carbon-neutral growth 2020

Gross emissions trajectory

Economic measures

Biofuels +

add. Tech

(schematic)

Emissions reduction roadmap

TAXESARE THEANSWER

SOME POLICYMAKERS BELIEVE

Uncoordinated patchwork

“Green” taxes

$ ? $ ? $ ? $ ? $ ?$ 4 mn$ 1-13 bn

$3.5bn $1.2bn $0.2bn $ ? $ ? $ ?$6bn?$100m

Emissions trading

A GLOBALAPPROACH IS THEONLY WAY FORWARD

CONVINCE POLICYMAKERS THAT

Global policy developments

Positives:– First ever global sectoral agreement on CO2

– Reflects aspirational industry goal of carbon-neutral growth from 2020

– Lists 15 principles for MBMs, in line with industry priorities, e.g.

• Transparency and simplicity• No duplication• Minimise leakage and distortion• Appropriate access to all carbon markets

ICAO

Assembly

2010

Political and technical challenges

• Lack of political urgency• EU ETS Distraction• Developed vs. developing

country approaches• CBDR issue• Mitigation vs. adaptation

• Avoid competitive distortion

• Level – playing field• Reward early adopters• Accommodate fast

growth markets

Moving the political agenda

• Remind policy makers of the social and economic benefits of aviation

• Continue to deliver industry contribution to targets

• Call upon governments to deliver on their part

• Work with ICAO to further their agenda

• Above all, work collaboratively across industry, government and civil society

14

THE WAY FORWARDHONG KONG, SEPTEMBER 2011