International transport: turning an emissions problem into a finance opportunity (June 2011)
Posted on June, 04 2011
One of the most promising innovative sources of public financing for adaptation and mitigation actions in developing countries is measures to address emissions from international aviation and shipping. This paper presents options for such measures, in line with the obligations and principles of the relevant conventions and with a focus on the appropriate use of finance generated.
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.