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(Version as at 1830 hours 29 June 2020) Draft – Council Decision on CORSIA Design Features and COVID-19 Pandemic (as part of 220th C-DEC text, for C-WP/15053, Section 2 Only) 1. In recognition that: a) COVID-19 has had a significant negative impact on international air transport, with ICAO forecasting global international aviation capacity in 2020 to be down by up to 63 per cent, and airlines losing up to USD400 billion of revenue in 2020; b) the full impact of COVID-19 on international civil aviation is not yet clear, and consequences for States and airlines around the world may differ, but all airlines in all regions of the world are being significantly impacted; c) COVID-19 and the global slowdown of aviation will cause a substantial reduction in CO2 emissions from aviation in 2020 and, in all likelihood in 2021 as well; d) the use of the average of 2019-2020 emissions as the CORSIA baseline was established with data and forecasts that could not envisage exceptional circumstances such as those deriving from the impact of COVID-19; e) notwithstanding the uncertainty of forecast data for the remaining part of 2020 and for 2021, an offsetting calculation based on the 2019-2020 baseline would generate a substantial unexpected increase in offsetting requirements in 2021 and following years, with negative implications for the recovery of air transport during and after COVID-19; f) CORSIA remains a key part of the basket of measures to achieve the global aspirational goal of carbon neutral growth; g) operative clause 16 of Assembly Resolution A40-19 recalls the need to provide for safeguards in the CORSIA to ensure the sustainable development of the international aviation sector and avoid inappropriate economic burden on international aviation, and requests the Council to decide the basis and criteria for triggering such action and identify possible means to address these issues; h) such decisions taken by the Council to avoid inappropriate economic burden on international aviation will be necessary and essential considerations in the periodic review of CORSIA in accordance with paragraph 17 of Assembly Resolution A40-19; and i) in giving effect to operative clause 16 of Assembly Resolution A40-19, it is desirable that Council address the CORSIA baseline, the reference year for calculating offsetting requirements for the pilot phase, and the new entrant threshold (together, the three CORSIA design features);  2 2. The Council: a) agreed that the COVID-19 situation constituted a situation warranting action by the Council to avoid inappropriate economic burden on international aviation; b) agreed, in order to safeguard against inappropriate economic burden on aeroplane operators, that actual 2020 emissions should not be used for the three CORSIA design features, and decided that during the pilot phase actual 2019 emissions shall be used for 2020 emissions and published in all relevant ICAO CORSIA Documents referenced in Annex 16, Volume IV; c) agreed that the Council will upon further analysis, consider amendments to Assembly Resolution A40-19 to also use only 2019 emissions for the three CORSIA design features beyond the pilot phase, to be presented to the 41st Session of the Assembly for decision; d) decided to initiate the process for establishing the 2022 periodic review of CORSIA in accordance with operative clause 17 of Assembly Resolution A40-19, and requested the Secretariat to present a review structure, process and methodolog for Co ncil s consideration at its 222nd Session, incl ding a ork programme for CAEP s technical and anal tical contrib tions to the re iew; e) confirmed that the Co ncil s 2022 periodic re ie of the implementation of CORSIA, incl ding its impact on the growth of international aviation, will serve as an important basis for the Council to consider whether it is necessary to make adjustments to the next phase or compliance cycle and, as appropriate, to recommend such adjustments to the Assembly for its decision. In the context of this periodic review of CORSIA, the Council will also examine, with the technical contribution of CAEP, the impact of COVID- 19 on CORSIA - including inter alia its impact on the baseline beyond the pilot phase, on the different phases of CORSIA implementation, and on the growth factors - in order to contribute to the sustainable development of the international aviation sector and the effectiveness of the scheme, in line with Assembly Resolution A40-19; and f) requested CAEP to continue to analyse the impact of COVID-19 on CORSIA, drawing upon ICAO s ongoing ork to anal se the economic impact of COVID-19 on aviation including the regional breakdown and recovery scenario modelling, and to provide an update for Co ncil s consideration d ring the 222nd Session, including: i. quantification of the volume of CO2 emissions from international aviation that will not have been emitted due to the reduction in aviation activity compared to forecast activity each year until such time as international aviation fuel burn and emissions equals or exceeds 2019 levels; and ii. an analysis of the cost implications of CORSIA offsetting requirements, taking into consideration the current and expected emission unit prices offered by the Emissions Unit Programmes approved for CORSIA by the Council. END Saatja: Vuokila Samuli <[email protected]> Saadetud: 30.06.2020 23:48 Adressaat: Kåre Clemmesen <[email protected]>; <[email protected]>; <[email protected]>; Tupamäki Matti <[email protected]>; <[email protected]>; Pöntinen Jari <[email protected]>; Māris Gorodcovs <[email protected]>; Rait Kalda <[email protected]>; Ljungberg Gunnar <[email protected]>; Jón Gunnar Jónsson <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; Tom Andersen <[email protected]>; ' Valdís (NORDICAO-Iceland) ' <[email protected]>; <[email protected]>; Kea Toi <[email protected]>; Moonika Käst <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; <[email protected]>; Lohko-Soner Katja <katja.lohko- [email protected]>; Laitila Jyrki <[email protected]>; <[email protected]> Teema: ICAO Council Decision on CORSIA to address COVID-19 impact Manused: CORSIA-draft-C-DEC 300620.pdf Dear all, The ICAO Council has just adopted the attached Decision on CORSIA after difficult discussions, compromises and eventually voting with 25 in favour, 3 against and 8 abstaining. Decision will become official after normal Council Decision process but as it was voted upon, no comments are expected on this part of the meeting agenda. Enjoy the rest of the week and holidays! Brgds Samuli Mr Samuli Vuokila Representative of Finland on the Council of ICAO NORDICAO - Nordic Delegation to the International Civil Aviation Organization Denmark, Estonia, Finland, Iceland, Latvia, Norway, Sweden 999 Robert-Bourassa Boulevard, Suite 15.25 Montréal, Quebec H3C 5J9 Phone: +1 514-954-8290 Cell phone: +1 514-794-1206 [email protected] [email protected]