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Brussels to Beijing - commodities policy in Europe and Asia

Global aviation emissions accord to push fuel efficiency, not cuts

October 11, 2016 (6:16 mins)



The aviation industry has agreed for the first time to start offsetting its greenhouse gas emissions from 2021 under a voluntary, global market-based system. Siobhan Hall, Caroline Knight and Frank Watson discuss how this ICAO agreement is likely to reinforce airlines' commitment to improving their fuel efficiency and could spark longer term interest in renewable fuels if oil prices recover. The accord could also persuade the EU to extend its "stop the clock" exemption from the EU Emissions Trading System for flights into and out of Europe.


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