David Batchelor DG for Mobility and Transport European Commission 26 September 2010 INTERNATIONAL AVIATION AND CLIMATE CHANGE ICAO/McGill Worldwide Conference

| 2 INTERNATIONAL AVIATION AND CLIMATE CHANGE Outline of presentation. The climate change challenge. The 37th ICAO Assembly. International aviation and emissions trading

| 3 INTERNATIONAL AVIATION AND CLIMATE CHANGE EU climate change policy. Tackling climate change is urgent – action required now. The EU’s objective is to limit global temperature increase to 2°C above pre-industrial levels. EU now has legislation in place to deliver a 20% reduction in CO 2 emissions below 1990 levels by EU will increase target to a 30% reduction below 1990 levels by 2020 in the context of international agreement on climate change. EU leaders recognise that 80 – 95% reductions in the EU’s emissions are necessary by 2050

| 4 INTERNATIONAL AVIATION AND CLIMATE CHANGE Global vision for <2°C: peak by 2020 and deep cuts by 2050

| 5 INTERNATIONAL AVIATION AND CLIMATE CHANGE Aviation emissions: forecasts indicate significant growth for the next decades % to 88% increase % to 667% increase Source: ICAO GIACC/4-IP/1

| 6 INTERNATIONAL AVIATION AND CLIMATE CHANGE The 37th ICAO Assembly Key issues:. Global goal » EU supports global goal of 10% reduction in GHG emissions below 2005 levels by 2020 » Global goal does not attribute specific obligations » Some states will contribute more towards global goal than others. Framework for market-based measures » Technological and operational measures insufficient on their own » Need to facilitate the implementation of market-based measures

| 7 INTERNATIONAL AVIATION AND CLIMATE CHANGE International aviation and emissions trading. In 2004 ICAO endorsed inclusion of aviation in emissions trading systems. Aviation included in EU ETS from Covers all flights departing from and arriving at EU airports (with some exemptions). EU recognises need for global solution

| 8 INTERNATIONAL AVIATION AND CLIMATE CHANGE Flexibility provisions in EU ETS. Where a 3rd country adopts measures to reduce the climate impacts of flights arriving in the EU: » EU will ensure optimal interaction between measures » Legislation enables exemptions for arriving flights from scope of the EU ETS. In case of agreement on global measures, EU would amend Directive as necessary

| 9 INTERNATIONAL AVIATION AND CLIMATE CHANGE Conclusions. Clear that international aviation must contribute to tackling climate change. 37th Assembly presents opportunity for ICAO to demonstrate leadership through: » establishment of clear and ambitious goals » framework for measures. Global framework must facilitate adoption of measures by states