ICAO 2013 Environmental Report - page 168

icao environmental report
ICAO Secretariat
Assembly Resolution A37-19 requested the ICAO Council to
study, identify and develop processes and mechanisms to
facilitate the provision of technical and financial assistance,
as well as facilitate access to existing and new financial
resources, technology transfer, and capacity building for
developing countries. It also requested the initiation of
specific measures to assist developing States, as well as to
facilitate access to financial resources, technology transfer,
and capacity building.
To fulfill the request of the Assembly, ICAO has developed
and implemented a robust capacity building programme to
assist Member States in the preparation and submission
of their action plans within the 2010 to 2013 timeframe
(see Chapter 5
State Action Plans To Reduce Aviation
, in this report). ICAO also organized the
“Assistance for Action – Aviation and Climate Change”
(ACLI) Seminar which addressed, among other things, the
needs identified by States in their respective action plans
Figure 1
The ACLI Seminar highlighted the synergies and constructive
engagement among ICAO, its Member States, stakeholders,
and other international organizations during the action
plan initiative. It also showcased the possible financial
mechanisms related to climate change to which the
international aviation sector could gain access.
Challenges and Opportunities
for Financing the Aviation Sector
Currently, international aviation has no dedicated financial
mechanism related to climate change, such as the Climate
Investment Fund (CIF)
or Clean Development Mechanism
of the Kyoto Protocol. However, the current
absence of such a mechanism does not mean that there are
no initiatives or specific examples of financial contributions to
support aviation-related climate change mitigation measures.
Financial support for mitigation measures can be originated
from public, private, and public-private sectors, and can be
channelled through various intermediaries. These channels
include bilateral financing institutions (BFIs), multilateral
financing institutions (MFIs), development cooperation
agencies, the United Nations Framework Convention on
Climate Change (UNFCCC) process, as well as various
funds, such as those managed by the Global Environment
Facility (GEF), non-governmental organizations and the
private sector directly
. Currently, private financing sources
from foreign direct investment provide a large part of the
total funding. Most of the public international financing for
mitigation measures is provided through BFIs and MFIs.
The major sources of multilateral financing include the
Global Environment Facility (GEF)
, World Bank (WB)
European Bank for Reconstruction and Development
, Asian Development Bank (ADB)
, European
Investment Bank (EIB)
, African Development Bank (AfDB)
and Inter-American Development Bank (IDB)
. These funding
bodies, among others, have allocated resources to emission
mitigation measures.
A number of concrete opportunities were identified during
the ICAO ACLI Seminar including possible partnerships that
will provide the financial assistance required to implement
the measures selected. This Chapter will showcase a
number of opportunities identified for financing through
various sources, to assist States in the development
and implementation of different mitigation measures, as
identified in the State action plans.
For example, the Inter-American Development Bank (IDB)
is the leading source of development financing for Latin
America and the Caribbean (LAC), with local offices in
all its 26 borrowing Member Countries. In early 2011, it
launched the Regional LAC Aviation Biofuels Initiative to
help public and private institutions develop a sustainable
biojet fuel industry in LAC employing different kinds of
local feedstocks. This initiative involved a variety of start-up
activities, all with the goal of demonstrating their feasibility
for the local aviation sector, and as a potential export. (see
Financing the Development of Aviation Biofuels in
Latin America and the Caribbean
, Chapter 6 in this report).
At the ICAO ACLI Seminar, the United Nations Development
Programme (UNDP), the implementing agency for the
GEF, expressed its support for potential projects under
ICAO, using as a reference case the project which was
implemented in conjunction with the International Maritime
Organization (IMO) and financed by GEF. The “GloBallast”
programme aimed at the maritime shipping industry’s
handling of ballast water, and can be used as a model for
the aviation sector (see article
UNDP: Leveraging Climate
Finance for Sustainable Future
, Chapter 6 in this report).
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