Friday, June 22, 2012

Green Credit Scheme

Green Credit Scheme
European Union(EU) has decided to include the emissions from the aviation sector in its Emissions Trading System(ETS) with effect from 2012 . Under the scheme, all non-EU flights entering EU territory will be required to buy emission allowances based on their share of GHG emissions. Exemptions will be provided to some airlines if the frequency of flights is lower than prescribed or the country concerned implements equivalent measures for emissions reduction in this sector within its own territory.

India considers the step as a unilateral measure and in violation of the Chicago Convention and the provisions of United Nations Framework Convention on Climate Change (UNFCCC). The measure is also against the spirit of bilateral air services agreement entered into by India with some of the EU countries. The Government of India has expressed concern to the European Union on this unilateral measure both at multilateral and bilateral level. India took the lead in getting a joint declaration issued with the support of like-minded non EU member states of International Civil Aviation Organisation (ICAO) that are opposed to the EU’s decision. The joint declaration was submitted to ICAO council for consideration. ICAO Council has adopted the declaration with minor modifications.


The Convention on International Civil Aviation, also known as the Chicago Convention, established the International Civil Aviation Organization (ICAO), a specialized agency of the United Nations charged with coordinating and regulating international air travel.

  • The Convention establishes rules of airspace, aircraft registration and safety, and details the rights of the signatories in relation to air travel. The Convention also exempts air fuels from tax.
The document was signed on December 7, 1944 in Chicago, U.S., by 52 signatory states. It received the requisite 26th ratification on March 5, 1947 and went into effect on April 4, 1947, the same date that ICAO came into being. In October of the same year, ICAO became a specialized agency of the United Nations Economic and Social Council (ECOSOC). The Convention has since been revised eight times (in 1959, 1963, 1969, 1975, 1980, 1997, 2000 and 2006).

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