World's first airline climate plan signed by Canada

Garneau called it a "historic agreement," and said that Canada had played a leading role in the backrooms at the Montreal-based International Civil Aviation Organization (ICAO) to bring on board as many countries as possible.

But some disappointed environmental groups say the agreement will not go far to help fight global warming.

"In the same week that the Paris agreement crosses its crucial threshold to enter into force, countries sent a worrying signal by deleting key provisions for the aviation agreement that would align its ambitions with the Paris agreement's aim of limiting global temperature rise to well below two degrees with best efforts to not exceed 1.5 degrees Celsius," reads a statement from the International Coalition for Sustainable Aviation.

Sources said that airlines make up roughly two per cent of all greenhouse gas emissions, and environmental groups say an uptake of 80 to 90 per cent of the world's emitters is required to slow global warming.

According to the agreement, in spite of increase in civil aviation and international flights, they will be carbon neutral beyond 2020 requiring airlines to buy carbon credits and 85 percent of the world's emitters will participate in a voluntary carbon-offset system beginning in 2021, said Garneau.

It's the first global carbon offset system for a single industry.

Although Canadian airlines’ agreement with the plan could lead one to 1.5 percent of increase in airfares, "Canadian aviation companies, airlines, are prepared to sign up to this, the global market-based measures." Garneau said.

The new carbon neutral agreement for airlines system will remain voluntary from 2021 to 2026 and become mandatory for most countries beginning in 2027, said Garneau.

Aviation was excluded from the Paris climate agreement, which was on the verge of approval on Wednesday. The agreement will go into force Nov. 4, with Canada among the 191 signatories.

"What was a visionary approach seven years ago has today become a reality," said Michael Gill, the executive director of the Air Transport Action Group.

(Reporting by Asha Bajaj)