Will the Clock Run out on “Stop the Clock” for Business Aviators?
For those of you unfamiliar with the cap-and-trade system called the European Union Emissions Trading System (EU-ETS), you may need to read this – it could come into play in a major way this year.
The EU-ETS Backstory
European nations have long wanted the United Nations (UN) to establish global standards governing carbon emissions for all industry. But time and again, a consensus on what those standards should look like and how they should be instituted has proven elusive. The EU decided to take matters into their own hands – at least in regards to meeting carbon emission reduction targets for Europe.
The EU instituted EU-ETS in 2012. It basically levels fees on businesses for carbon (CO2) emissions for all its member states, and it applies to all industry, including aviation. EU-ETS established a cap-and-trade approach to the buying and selling or auctioning of carbon credits, which in turn funded further research and development. Heavy, heavy protests from non-European airlines – namely those from the U.S., China and India arose, citing the scheme would ignite trade wars and negatively impact national sovereignty.
Based on these protestations and an overriding desire for a comprehensive global approach to reducing carbon emissions, the EU decided in 2013 to delay the implementation for aircraft operating to and from destinations outside of the EU until 2017. The EU-ETS rules would still apply, however, to flights operating within the European economic area.
This compromise, authored by the European Commission and endorsed by the European Parliament, is called “Stop-the-Clock.” It was considered a reprieve that would allow the UN’s International Civil Aviation Organization (ICAO) enough time to develop a global agreement on market-based measures (MBMs). The provision would be extended by one year and re-extended only if significant progress was made toward establishing meaningful MBMs.
Some European airlines were furious with the provision, however, and threatened legal action on the grounds that it discriminated against intra-EU carriers that were participating in EU-ETS. They felt it placed unfair financial burdens on them and hampered them in planning for and attaining operational stability – not to mention the various legal uncertainties involved.
The State of Current Affairs
On February 8, 2016, the ICAO codified global CO2 emissions standards for the aviation industry. During its annual meeting, ICAO’s Committee on Aviation Environmental Protection (CAEP), made up of 170 international member experts, recommended measures for environmental improvements that would begin taking effect in 2020.
The plan consists of three main components:
1. Develop a CO2 efficiency standard for new aircraft
2. Develop guidance documents on operational measures
3. Develop and test alternative sustainable drop-in fuels from non-fossil sources
The new emissions standards would not only apply to new aircraft types equipped with the latest technological advancements, but it would apply to new aircraft deliveries of current, in-production types starting in 2023. Additionally, the committee recommended a 2028 cut-off date for the production of aircraft types that do not comply fully with the new standards.
A small side note: In June 2015, the U.S. Environmental Protection Agency (EPA) also began formulating national CO2 emissions regulations, but little is known about what those will entail. This move by the EPA came about in part from the failed efforts of the legislative branch to pass into law a cap-and-trade system, similar to EU-ETS in 2009. Though the House of Representatives passed the American Clean Energy and Security Act (also known as the Waxman-Markey Bill), the Senate never brought it to the floor for discussion.
The new CAEP standards are especially rigorous for larger aircraft types, 60 tons or greater, whose operations account for more than 90 percent of international aviation emissions. Keep in mind: Worldwide aviation emissions account for roughly 2 percent of total emissions, but that amount is predicted to increase significantly by 2030 due to projected increases in passenger air travel. That said, the standards developed in February 2016 cover all aircraft of all sizes involved in international aviation.
Since the February meeting, there hasn’t been much published on behalf of CAEP, the European Commission, or the European Parliament on this matter. The Stop-the-Clock provision of EU-ETS is due to expire by the end of this year. Yet it remains unclear what further actions and implementation processes will take effect for the newly defined CAEP measures. If the clock runs out on Stop the Clock before the new CAEP standards are formalized, the global aviation community may find itself right back where it was in 2013 when the furor erupted over EU-ETS.
Meanwhile, the National Business Aviation Association (NBAA) is standing strong in its opposition to EU-ETS’s CO2 emission standards for civil aviation. They also provided input for ICAO’s Committee after its February 2016 recommendations came out. NBAA is optimistic that the CAEP-recommended measures would empower civil aviation (including business aviation) to reduce global emissions through performance improvements while sustaining economic growth. Ultimately, the Washington, DC-based organization seeks to promote business aviation while actively advocating for ways to minimize its impact on the environment – both in regards to emissions, effects on the ozone, etc. and with aircraft noise.
For more updates throughout the year on what will happen next with EU-ETS, visit UAS Blog and NBAA’s website.
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Mitch Launius
Instructor Pilot for 30 West IP
Mitch is the CEO of 30 West IP where he is also an instructor providing pilot training on international procedures. With an illustrious career of over 34 years in the cockpit, Mitch has acquired over 13,000 hours of flight time flying worldwide, with over 9,000 hours of this in Challenger and Gulfstream aircraft. He is an experienced safety officer and was also an IS-BAO project manager for a fortune 500 flight department. He has presented on Safety and Operations topics at the NBAA International Operators Conference and the Canadian Business Aviation Association Convention and is currently on the NBAA International Operators Committee and serves as the North Atlantic Regional Lead. Mitch is also a member of an FAA working group on General Aviation International Authorizations and Tabletop Exercises (GIATE). He was recently selected to represent IBAC as a member of the ICAO Personal Training and Licensing Panel (PTLP) and was also recently named as a 2020 recipient of the NBAA Tony Kern Professionalism in Aviation Award for his contribution to the business aviation community.
Henry ‘Duke’ LeDuc
Director Of Operations, Americas, UAS International Trip Support
Duke has been a dearly respected member of UAS Americas team and the UAS global family for more than five years. A safety-oriented, FAA-licensed aircraft dispatcher, he oversees all of the operations of the elite UAS Operations Team. With twenty-five years of experience in aviation overall with more than fifteen years of experience in international flight planning and VVIP trip coordination, he is responsible for the development of the dispatch training program and involved in the strategic development of UAS Americas. With a myriad of rich aviation experience behind him, he has extensive experience in worldwide operations with both corporate and charter environments, including seven years as Operations/Dispatch Manager in an industry-leading, Fortune 500, IS-BAO Stage III Certified corporate flight department. Duke is frequently asked shares his knowledge at major industry events and is currently serving on the NBAA’s International Operators Conference (IOC) Planning Committee.
Dudley King
President and Founder, FlightBridge
Dudley is the Founder and President of FlightBridge, which he established in 2011 and has been focused on technology solutions for the private aviation industry since 2006. Since he graduated from Dartmouth in 1988, he has worked with an array of companies listed anywhere from VentureWire to the Fortune 100. A rare blend of executive, entrepreneur, and consultant, Dudley’s executive roles have included acting CIO positions for several companies and tech advisory services to CEOs trying to rebuild their technology organizations or looking for an external, professional point of view. Highly skilled at deeply understanding his customer’s business challenges and drawing from a long and varied experience in information technology services, Dudley excels at designing technology solutions to solve their problems.
Dr. Paulo Alves
Global Medical Director, Aviation Health, Medaire
Paulo has extensive experience in medical advisory in the aviation industry. As a cardiologist, he provides technical guidance and analysis for MedAire’s MedLink medical advisory service and is MedAire’s liaison with civil aviation regulators and industry associations. Paulo worked with Varig Brazilian Airlines for 23 years, 10 of which were spent as General Medical Manager. A member of the MedAire Medical Advisory Board, Paulo is also President of the Ibero-American Aerospace Medical Association, a member of the International Academy of Aerospace Medicine, a member of the National Business Aviation Association (NBAA) Safety Committee, a Fellow of the Aerospace Medical Association (AsMA), and a Fellow of the Civil Aviation Medical Association. Throughout his illustrious career, Paulo has held industry leadership roles including Chairperson of the AsMA’s Air Transport Medicine Committee, President of the Airlines Medical Directors Association, President of the Brazilian Society of Aerospace Medicine and was a member of the IATA Medical Advisory Group from 2002 to 2006.
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