On 04 October, Member States of the International Civil Aviation Organization (ICAO) agreed, at its 38th Assembly in Montreal, to develop a global market-based measure (MBM) for international aviation. 

ICAO’s States agreed to report back in 2016 with a proposal for a global MBM scheme capable of being implemented by 2020. The agreement also puts in place a fair and equitable solution that respects the special circumstances and respective capabilities of certain countries. Therefore efforts will need to be undertaken in order to address the challenges and accommodate specific concerns of developing countries in moving forward.

 The market based mechanism will be accompanied by a series of technical and operational measures to reduce emissions and will go hand in hand with new procedures to promote more advanced technology, including the use of better alternative aviation fuels and to promote better procedures, including in the area of air navigation.

The agreement was welcomed by Commission Vice President Kallas, responsible for Transport and EU Climate Change Commissioner Connie Hedegaard.

Following this agreement, the European Commission, in coordination with the European Parliament and the EU Member States, will assess the decision taken today at ICAO in more detail before deciding on the next steps with respect to the EU ETS.

More details on the contents of the agreement are available here.

The official EU press release is available here.