Airlines and governments oppose EU’s Emissions Trading Scheme
January 2012
An airline trade association will continue to challenge efforts by the European Union to move forward with its plans to include airlines in its Emissions Trading Scheme. The inclusion of airlines beginning January 2012 has created a backlash throughout the world from airlines, governments and trade groups. Will the EU ease off, or dig in?
Europe's highest court has upheld an EU law designed to include airlines in a scheme to curb carbon emissions, known as the Emissions Trading Scheme (ETS). Airlines For America (A4A and formerly the Air Transport Association), has vowed to continue the fight against the European ETS which is designed to curb greenhouse gasses but has been criticized as being punitive and excessive. The industry does not oppose the concept of cleaner skies. The problem that the airlines have with the EU plan is that it's just the EU imposing additional costs for merely flying to, from or over European airspace. A4A argues that a global approach should be taken so that standards and practices are consistent and not unilaterally implemented by one nation or region.
The Emissions Trading Scheme, or ETS, imposes charges on the heaviest polluters in various industries. Companies that pollute the most either pay a fine, or purchase "permits" that they can use against their excess emissions. Businesses that produce fewer emissions than the standards can sell their "credits" on the open market to companies that pollute more. For the first time, airlines will be included in this program. This includes every airline flying to, from or within Europe. Therein lies the problem with the industry.
The airline industry decries ETS as locally crafted but globally punitive. Led by U.S. charges of international trade violations, the opposition is growing louder. Accusations of stepping over a nation's sovereignty have led to threats of trade wars and other retaliatory measures from various nations. Despite the outcry, the EU is moving forward. Court challenges will continue, including A4A which will comply with the law "under protest" as it continues the fight on behalf of the airlines.
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