Turbulences Ahead: Market Based Measures to reduce Aviation Emissions

The policy brief examines the climate impact of aviation, which contributes between 5% and 14% of global climate emissions. It critiques the reliance on offsetting, arguing that only a cap-and-trade system with a strict cap can deliver real in-sector reductions. The document analyzes ICAO's proposed measures, including a 'basket of measures' and various market-based options, while warning that low-quality offsets from mechanisms like the CDM and JI undermine environmental integrity. It also details the EU's attempt to include international flights in the EU-ETS and the subsequent 'stop the clock' derogation to allow ICAO to find a global solution.

• Aviation is responsible for 5% of global greenhouse gas emissions from jet fuel, but total climate impact including contrails and cirrus clouds may reach up to 14% of man-made climate change.
• Air traffic emissions are increasing by approximately 4% annually, and without mitigation, international aviation and shipping emissions could increase by 300-400% by 2050, potentially consuming 30% of the 2C global emissions budget.
• The author asserts that a cap-and-trade scheme with a stringent cap and limited offsets is the only market-based solution capable of delivering actual emission reductions in the aviation sector.
• The European Union's decision to include all flights arriving and departing from the EU in the EU-ETS starting in 2012 led to the 'stop the clock' derogation, which temporarily paused the inclusion of intercontinental flights in 2013 to facilitate an ICAO agreement.
• Non-market based measures, such as technological and operational improvements, are considered important for the long term but are insufficient on their own to meet the 2C climate goal.
• Offsetting is criticized as a non-viable long-term solution because it does not reduce emissions within the aviation sector and may increase global emissions if credits are of low quality.
• Analysis of 2012 EU ETS data shows that airlines used 11 million offset credits, with significant portions coming from low-quality projects, such as HFC-23 destruction and N2O adipic acid projects, some of which were subsequently banned by the EU.

APA

Carbon Market Watch (2013). Turbulences Ahead: Market Based Measures to reduce Aviation Emissions. https://carbonmarketwatch.org/wp-content/uploads/2013/05/Aviation-Emissions-Policy-Brief-June-20131.pdf

Chicago

Carbon Market Watch. Turbulences Ahead: Market Based Measures to reduce Aviation Emissions. 2013. https://carbonmarketwatch.org/wp-content/uploads/2013/05/Aviation-Emissions-Policy-Brief-June-20131.pdf.

Wikipedia

{{cite report |author=Carbon Market Watch |title=Turbulences Ahead: Market Based Measures to reduce Aviation Emissions |date=June 2013 |url=https://carbonmarketwatch.org/wp-content/uploads/2013/05/Aviation-Emissions-Policy-Brief-June-20131.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{carbonmarketwatch2013turbulences, author = {{Carbon Market Watch}}, title = {{Turbulences Ahead: Market Based Measures to reduce Aviation Emissions}}, institution = {Carbon Market Watch}, year = {2013}, month = jun, url = {https://carbonmarketwatch.org/wp-content/uploads/2013/05/Aviation-Emissions-Policy-Brief-June-20131.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }