Greenhouse gas plan irks airlines

By Nikki Tait in Brussels
Published: June 27 2008 01:01
A proposed EU deal, which could force airlines to start paying for greenhouse gas emissions in four years’ time, was on Thursday described by industry operators as “unacceptable”.
The provisional agreement is understood to have been reached among lawmakers in Brussels but will still require approval from member states and the European Parliament over the next few weeks.
It would cover airlines flying routes within the EU as well as those operating internationally which landed or took off within the bloc.
These operators would face a cap on emissions and have to buy some of their carbon permits through the emissions trading scheme.
According to one person close to the situation Thursday, the quota will be set at 97 per cent of average historic emission levels when airlines first join the scheme, although the percentage will reduce over time. Airlines will have to buy 15 per cent of the quota at auction.
Sources said the agreement also meant aviation would be included in the ETS from 2012, instead of 2011 for some flights as previously proposed.
The news brought a strong response from industry organsations. “Fifteen per cent auctioning in 2012 is unaffordable and unacceptable for our airlines given today’s high fuel prices and weakening demand,” said Sylviane Lust, director-general of the International Air Carrier Association, which represents leisure carriers like Air Berlin and First Choice.
The deal is now due to be put to top diplomats from EU member states – where it is believed to have a good chance of being accepted – and could reach a plenary vote in the European Parliament early next month.
The EU has been anxious to expand emissions trading to curb CO2 discharges. But any deal that includes non-European airlines is likely to run into strong opposition internationally.
Copyright The Financial Times Limited 2008