EU to include airlines in emissions trading system
European Union officials have reached a preliminary deal to include airlines flying to and from the EU in the bloc's strategy to cut carbon dioxide emissions - a move that could raise the cost of flying and provoke a dispute with the United States.
By Agencies |
BRUSSELS-BELGIUM: European Union officials have reached a preliminary deal to include airlines flying to and from the EU in the bloc's strategy to cut carbon dioxide emissions - a move that could raise the cost of flying and provoke a dispute with the United States.
Under the deal, reached by representatives of the Slovenian EU presidency and the European Parliament late Thursday, all flights starting or landing in the EU, including intercontinental flights, will be included in the EU's emission trading system from 2012.
Pollution permits granted to airlines would initially be capped at 97 per cent of their average emissions for 2004-2006. From 2013 the cap would drop to 95 per cent.
Eighty-five per cent of those emission certificates will be allocated for free, while the rest will be auctioned. Airlines that want to fly - and pollute - more will buy more permits.
Small airline companies producing low emissions will be excluded from the program. The revenues generated by the auctioning will be used to finance the fight against climate change, research into clean aircraft and other environment-friendly policies, according to the deal, which still needs to be formally approved by the EU governments and the European Parliament, which will vote in July.
The EU assembly had originally pushed for more stringent terms, while the governments were more lenient.
For airlines, the emissions trading would set a limit on how much carbon dioxide they can release, allowing them to sell surplus permits if they fly less or use greener technology and punishing them with extra costs if they want to use more fuel. Each permit would be good for 1.1 ton (1 metric ton) of carbon dioxide per year.
Faced with higher fuel costs, some airlines are already cutting fuel consumption and carbon. They say tighter limits will burden them with extra costs of euro4 billion (US$6.3 billion) a year and wipe out potential future profits and growth.
Aviation is expanding rapidly - particularly in Europe where low-fare airlines have encouraged people to fly more often and in greater numbers.
The United States believes the Europeans have no right to force airlines using European air space to participate in their emissions caps program and prefers a voluntary agreement among nations.
US officials say the EU will likely break international aviation rules if it insists on including non-European airlines in the program _ even though the EU says it is certain its system would be legal.
The deal reached Thursday says the EU "has an obligation to seek an agreement on global measures to reduce greenhouse gas emissions from aviation. Bilateral agreements, for example with the US, could be a first step."
Under the deal, reached by representatives of the Slovenian EU presidency and the European Parliament late Thursday, all flights starting or landing in the EU, including intercontinental flights, will be included in the EU's emission trading system from 2012.
Pollution permits granted to airlines would initially be capped at 97 per cent of their average emissions for 2004-2006. From 2013 the cap would drop to 95 per cent.
Eighty-five per cent of those emission certificates will be allocated for free, while the rest will be auctioned. Airlines that want to fly - and pollute - more will buy more permits.
Small airline companies producing low emissions will be excluded from the program. The revenues generated by the auctioning will be used to finance the fight against climate change, research into clean aircraft and other environment-friendly policies, according to the deal, which still needs to be formally approved by the EU governments and the European Parliament, which will vote in July.
The EU assembly had originally pushed for more stringent terms, while the governments were more lenient.
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The EU's carbon emissions trading program was introduced in 2005 and so far applies only to major manufacturing industries like steel as well as to power plants. For airlines, the emissions trading would set a limit on how much carbon dioxide they can release, allowing them to sell surplus permits if they fly less or use greener technology and punishing them with extra costs if they want to use more fuel. Each permit would be good for 1.1 ton (1 metric ton) of carbon dioxide per year.
Faced with higher fuel costs, some airlines are already cutting fuel consumption and carbon. They say tighter limits will burden them with extra costs of euro4 billion (US$6.3 billion) a year and wipe out potential future profits and growth.
Aviation is expanding rapidly - particularly in Europe where low-fare airlines have encouraged people to fly more often and in greater numbers.
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The EU pledged in 2007 to cut its greenhouse gas emissions by at least 20 per cent below 1990 levels by 2020. The United States believes the Europeans have no right to force airlines using European air space to participate in their emissions caps program and prefers a voluntary agreement among nations.
US officials say the EU will likely break international aviation rules if it insists on including non-European airlines in the program _ even though the EU says it is certain its system would be legal.
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The deal reached Thursday says the EU "has an obligation to seek an agreement on global measures to reduce greenhouse gas emissions from aviation. Bilateral agreements, for example with the US, could be a first step."
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