Since 2011 all major importing countries have adopted strong policies on carbon emissions and vehicle efficiency.
The World Business Council for Sustainable Development (WBCSD) places climate change mitigation in a much broader agenda of sustainable development, and its workforces and task groups of major international businesses creates the compost for ‘bottom-up’ growth in new business opportunities.
The transport sector is the largest market for liquid fuels. Over 50% of world oil production in 2009 went to transport, Almost 95% of the energy used in transport worldwide was supplied by petroleum in 2009. By 2030 oil’s dependence on the transport market may rise to around 60%, depending on the scenarios for climate change policies.
However, policies designed to reduce the emission of greenhouse gases inevitably also reduce the use of oil in transport, which generated 23% of all estimated CO2 emissions from fuel combustion in 2009 In 1996 the Intergovernmental Panel on Climate Change estimated that the aviation sector consumed 13% of all transportation fuels and produced almost 3% of anthropogenic CO2.
Because of the effect of other gases released by aircraft, the total global warming impact may be two to four times higher than that of CO2. The European Union requires, from 2012, all aircraft using EU airports to participate in the EU emissions trading system (ETS); initially international airlines will be monitored, and eventually they will be brought into the allowance system.
Meanwhile, the aviation industry is working to anticipate policy by achieving carbon-neutral growth from 2020. Carbon markets in 2010 were estimated at $135 billion. Prices have fallen since. The ‘carbon price’ has proved somewhat unstable and a stabilizing mechanism is being considered. Credits will be allowed, under conditions, for emission reductions achieved by investment outside the EU under the Kyoto Protocol CDM.