1. Update on the ICAO work on a Global Market-based Measure N-ALM, 3-4 November 2015 Therése Sjöberg, Transportstyrelsen (Swedish Transport Agency)

2. Background At the ICAO Genera Assembly in 2013, ICAO decided to develop a global MBM scheme for international aviation The work on the development of the GMBM should be reported for a decision to be made at the 39 th ICAO Assembly in 2016 The GMBM should be implemented from 2020

3. Suggested goal of the GMBM A mandatory offsetting approach to attain carbon neutral growth from 2020 for international aviation. Offsetting is accomplished through the purchase of certified emission reduction units. Operators will need to purchase emission units corresponding to the increase of emissions above the baseline (2018-2020). How the distribution of the offsetting obligations will look like between states, regions, routes, operators is not yet decided.

4. EAG (Environment Advisory Group) – A group of 17 Council Members established to only discuss policy matters related to the development of the GMBM. – At the moment discussing different options for the overall design of the scheme and how to distribute the offset obligations amongst the accountable entities (Aircraft Operators). – Some countries have expressed their wish to have states as the accountable entities, not Aircraft Operators. – The work is very politically sensitive and the members are quite far from reaching an agreement at the moment.

5. GMTF (Global Market-based Measure Technical Task Force) – A group established under CAEP to provide recommendations on Monitoring, Reporting and Verification (MRV); Emission Unit Eligibility Criteria (EUC) and Registries. – Seven GMTF meetings held since March 2014, the latest one held in Montreal 26-30 October. – The group has already agreed upon several recommendations to be adopted by CAEP/10 in February 2016. Still some work needed on some issues. Several issues deferred to EAG as they are of more policy character, such as the overall governance structure, vintage restrictions, registries, etc. – CAEP has been asked to create an example on how the MRV requirements can be transferred into a SARP

6. EU/ECAC MBM CG (Market-based Measure Coordination Group) – The European Coordination Group for issues related to the establishment of the GMBM. – European MBM experts discusses and develops common European positions and strategies aiming at the ICAO Assembly 2016. The group shares information on analyses made on the different approaches of the scheme. – The group has started to develop an excel spreadsheet to outline key elements of the GMBM that Europe needs to have a common position around, out lininig our preferred options, potential flexibilities and pink/red lines. – A smaller Pool of Advisors provides Lines To Take to the European EAG members.

7. Global Aviation Dialogs (GLADs) The objectives of the GLADs are to: – share information regarding MBMs – provide up-to-date information on the work of ICAO on the development of GMBM scheme; – serve as an opportunity to receive feedback from Member States and relevant organizations 4 GLADs held in 2015 in Lima, Nairobi, Cairo, Singapore, Madrid – Totally 362 participants from 79 States and 22 Organizations Administrative Simplicity, Environmental Integrity and Cost Effectiveness were raised most often as the design concerns for a global MBM for international aviation. 4 new GLADs are planned to be held in March/April 2016