News Content
UN's International Civil Aviation Organisation sets up carbon credit tax
THE UN's International Civil Aviation Organisation (ICAO) has approved an accord on to set up a carbon credit tax that will cost as much as US$23.9 billion by 2035, Bloomberg reports.
But member states must first put teeth into the deal said Reuters. Russia and India have said they will not participate. China has said it will.
Brazil, which had previously expressed concerns, voiced support for the deal, but did not say whether it would join the first phases.
ICAO's global carbon credit scheme, the first one for a single industry, is supposed to slow the growth of emissions from commercial flights, reports Reuters.
ICAO estimates it will cost 1.8 per cent of industry revenues in 2035 or US$1.5 billion and $6.2 billion at year in 2025, depending on carbon credit prices.
The idea is that the system will be voluntary from 2021 to 2026 and mandatory from 2027 onwards for states with larger aviation industries.
Airlines will have to buy carbon credits from designated environmental projects around the world to offset growth in emissions.
"It's a document arising from compromises and consensus," said ICAO president Olumuyiwa Benard Aliu.
The Montreal assembly of ICAO's 191 member states approved the deal, which will apply to international passenger and cargo flights.
Previous negotiations came close to provoking a trade war ahead of the 2013 ICAO assembly as the European Union, which was frustrated with slow progress, ordered foreign airlines to buy credits under its scheme. China and other countries said that violated their sovereignty.
But member states must first put teeth into the deal said Reuters. Russia and India have said they will not participate. China has said it will.
Brazil, which had previously expressed concerns, voiced support for the deal, but did not say whether it would join the first phases.
ICAO's global carbon credit scheme, the first one for a single industry, is supposed to slow the growth of emissions from commercial flights, reports Reuters.
ICAO estimates it will cost 1.8 per cent of industry revenues in 2035 or US$1.5 billion and $6.2 billion at year in 2025, depending on carbon credit prices.
The idea is that the system will be voluntary from 2021 to 2026 and mandatory from 2027 onwards for states with larger aviation industries.
Airlines will have to buy carbon credits from designated environmental projects around the world to offset growth in emissions.
"It's a document arising from compromises and consensus," said ICAO president Olumuyiwa Benard Aliu.
The Montreal assembly of ICAO's 191 member states approved the deal, which will apply to international passenger and cargo flights.
Previous negotiations came close to provoking a trade war ahead of the 2013 ICAO assembly as the European Union, which was frustrated with slow progress, ordered foreign airlines to buy credits under its scheme. China and other countries said that violated their sovereignty.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
