BA and Virgin propose carbon trading for airlines

BA and Virgin Atlantic are among five groups taking the lead in volunteering to be included in global climate change agreement that could open the way for extending the growing emissions trading system to the airline industry.

By Roland GribbenLast Updated: 6:57PM BST 06 Apr 2009

Air France-KLM, Cathay Pacific and BAA, the airport operator are also members of the Aviation Global Deal Group along with specialist advisers The Climate Change Group.
They tabled the offer at a UN conference in Bonn where 175 nations are discussing the framework for a tougher climate change pact to replace the looser Kyoto Agreement.

Environmental groups have strongly criticised airlines for their reluctance to take a climate change initiative. Airlines are estimated to account for just 2pc of global pollution but with the EU planning to include aviation in its emissions trading scheme from 2012 there is growing pressure for airlines to fall in line.
Yvo de Boer, executive secretary of the UN's climate change group said little progress had been made on the aviation issue and added that there was uncertainty about whether the sector would be included in the final agreement due to be approved in Copenhagen in December.
The BA group's pact covers all the aviation sector, including the US which has its own proposals for curbing airline emissions, but differences with the EU package is said to be hindering a common approach.
The proposals involve setting a global cap on aviation emissions with targets set for individual airlines linked to the carbon content of their yearly fuel purchases. A UN body would administer the system, including the auction of permits.