By Rob Starr, Content Manager, Big4.com
New analysis by PwC, The Future of Aviation Regulation, highlights the pressure on airline sector officials in the International Civil Aviation Organisation (ICAO) High Level Group, met recently for the first time. The group is expected to develop recommendations for a global emissions framework to be adopted in October 2013. Failure to do this will leave aviation regulation in turmoil.
Roger de Peyrecave, partner, PwC said:
“The aviation sector, which represents only 2.1% of emissions globally, has made good progress on reducing their average emissions intensity by 1.7% each year since 2000, and the industry body IATA has set ambitious targets to halve net emissions from the sector by 2050. The analysis finds that these targets are broadly consistent with a 5.1% rate of global decarbonisation suggested by PwC’s Low Carbon Economy Index, needed to limit global warming to 2°C.”
Jonathan Grant, Director, PwC said:
“It is likely that carbon offsets will feature, at least as an interim solution. We could see offset demand from the aviation sector growing to more than 100 megatonnes of CO2 a year by 2020, which would provide a significant boost to the carbon markets. This is more than one-quarter of the CERs issued in 2012.The Clean Development Mechanism has been in the doldrums throughout 2012 since the economic downturn in Europe. Progress in Doha on the idea of a CDM reserve bank or fund was limited, but this could rescue the CDM. “