Finnair and the other airlines belonging to the Aviation Global Deal Group, together with The Climate Group, today explained the emissions reduction targets that the group will propose for inclusion in the air transport emissions trading agreement that will possibly arise at the Copenhagen Climate Conference. The AGD Group will propose a worldwide sector agreement for air transport, covering the carbon dioxide emissions of all internationally operating airlines. Emissions reductions would be achieved with the aid of global targets. The AGD proposal includes three scenarios in which emissions will be reduced by 50-80 per cent by 2050. In the different scenarios, growth of air transport emissions would be halted or emissions reduced by five or 20 per cent by 2020 compared with their 2005 levels. The three scenarios are based on policies as well as the sector's and organisations' views on the role and opportunities for air transport in climate change measures. In all of the scenarios, the airlines would participate in international carbon dioxide trading so that adjustment to emissions restrictions and emissions reductions would be financially sustainable and so that emissions trading would act as a financial means of control towards more ecological operating practices. The AGD proposal emphasises the equality of the emissions trading model. Revenue from the auction of emissions rights would be directed in the AGD model to measures to combat climate change in developing countries. “To really achieve a reduction in air transport emissions, the emissions trading agreement must be worldwide. An agreement covering only certain airlines or areas will cause carbon leakage, i.e. it will support operating practices that increase environmental loading, such as stopovers in the wrong places for the flight journey, outside the emissions trading area,” observes Finnair's VP Sustainable Development Kati Ihamäki. According to the scenarios, annual auction revenue could be up to five billion dollars, which could be used for measures to combat climate change in developing countries, such as preventing the destruction of forests. Forest destruction is a significant source of greenhouse gases. The AGD Group includes, in addition to Finnair, The Climate Group as well as the airlines Air France-KLM, British Airways, Cathay Pacific, Virgin Atlantic, Qatar Airways, the ground handling company BAA, and now Virgin Blue Airlines, which has joined as a new member. Finnair Plc Communications 9.6.2009 Further information: Finnair Media Desk, tel. +358 (0)9 818 4020 or media.desk[a]finnair.com Kati Ihamäki, Finnair, tel. +358 (0)9 818 4101 Tom Howard-Vyse, The Climate Group, tel. +44 (0)297 960 2991, +44 (0)7800 933 831 or thoward-vyse[a]theclimategorup.org The AGD Group's Draft Proposal - “Ambitious, equitable and effective” - International aviation CO2 emissions should be addressed through a global sectoral agreement, rather than a patchwork of regional initiatives, in order to avoid carbon leakage and maintain a level playing field. - A global target is set for the sector, to ensure it plays its part in global CO2 emissions reductions. - This is achieved through a ‘cap and trade' emissions trading mechanism, where the sector has open access to global carbon markets. - An airline's CO2 emissions is based on the carbon content of its annual fuel purchases and the use of sustainable, lower life-cycle carbon alternatives are incentivised. - An international body administers the system. - Revenue generated from auction of a proportion of CO2 allowances is used for climate change adaptation and mitigation activities in developing countries and also research into greener aviation technology. AGD Group's website: http://www.agdgroup.org/ Finnair blogs: http://blogs.finnair.com Image bank: www.finnair.com/gallery Finnair Group website: www.finnairgroup.com via.Helsinki: www.viahelsinki.com