International transport: turning an emissions problem into a finance opportunity (June 2011)Summary:
• Emissions from international aviation and shipping must be controlled to give a good chance of limiting warming to 1.5oC or 2oC.
• Policies to control them could raise $24 billion annually, according to the AGF . In WWF's view the large majority of this should be used for financing climate action in developing countries through the UNFCCC.
• Co-operative global policies can be in line with the UN Climate Convention if designed appropriately, e.g., if they ensure that developing countries incur no incremental costs (have 'no net incidence').
• A promising approach in the shipping sector is a universal mechanism with a rebate for developing countries to neutralize any economic burden.
• In the aviation sector options to be explored include a rebate mechanism and limiting the policy to flights into and/or out of particular countries – e.g., developed countries or those with a significant share of air traffic.
• The overall impacts of these policies on trade and prices would be very small: a potential increase in costs of imported goods of only around 0.2% from a shipping mechanism.
• The COP should take a decision in Durban that encourages swift action from ICAO and IMO to implement policies, and that generates revenue and channels it to climate finance.