FAA has a five-pronged plan to understand and combat aviation's contribution to climate change, a senior agency official said last week in Washington.

FAA is crafting a "careful plan" to study the issue and to move toward a "carbon neutral future," said Daniel Elwell, FAA assistant administrator for aviation policy, planning and environment. The plan is in contrast to the "internationally unpopular path" the European Union is going down with its proposal to include aviation in its emissions trading scheme, he said.

The first prong of FAA's plan is to improve the scientific understanding of the effect aviation has on climate change, Elwell said. Beyond carbon dioxide, the science is unclear on the effect altitude and other gases and emissions may have on climate change, he said.

FAA must accelerate air traffic management reform and step up the system's efficiency to reduce fuel burn, Elwell said. NextGen is critical to the FAA's plan, although such measures as reduced vertical separation and East Coast airspace reform are steps in the right direction, he said.

Third, FAA must work with scientists and aircraft manufacturers to "hasten the improvement" and development of environmentally friendly aircraft, Elwell said. The fourth measure is to step up research on alternative fuels. Elwell noted that FAA's research into coal-to-liquid technology is yielding results.

Fifth, Elwell said FAA is considering market-based measures, such as emissions trading, tax incentives and carbon offsets. The U.S. has never been opposed to emissions trading, Elwell said, but it is opposed to a unilateral decision, such as the EU's. Instead, the FAA and the U.S. believe ICAO should mediate and administer any future emissions trading system, he added.

Yet, noting the remarkable gains in fuel efficiency the industry has made since 2000, Elwell said that the price of fuel is better at motivating airlines to become more efficient than any government policy.

Elwell next month will represent the U.S. at the Group on International Aviation and Climate Change, an ICAO-convened body to study the issue