Azara Blog: EU ministers want aviation in the EU emissions trading scheme

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Date published: 2007/12/20

The BBC says:

EU ministers have agreed to impose carbon emissions quotas on airlines in an attempt to fight climate change.

The Environment Commissioner, Stavros Dimas, said a strong signal had to be sent, although MEPs had wanted carriers to be included in the EU emissions trading scheme in 2011, not 2012.

The United States opposes the idea and has threatened legal action.

And the airline industry fears the cost of the carbon trading scheme could force some carriers out of business.

But Mr Dimas, said that aviation was responsible for 3% of carbon emissions, more than the steel industry which was already part of the trading scheme.

He said aviation emissions had doubled since 1990 and were predicted to double again by 2020.

Under the trading system, the EU limits the amount of carbon dioxide that industry is allowed to emit.

The airlines would have to meet their quotas, either by cutting their emissions or by buying credits from other industries.

Environment ministers meeting in Brussels agreed that airlines would have to buy 10% of permits upfront at auction in 2012, substantially lower than the proportion suggested by the European Parliament.

They also set the cap on emissions at the average level from 2004-2006.

Smaller operators would be exempt from the scheme because of the potential threat to their survival.

So far the EU carbon trading scheme has been a bit of a disaster, with companies making huge pots of money for nothing. But hopefully the EU will sort this aspect out. It is certainly reasonable that airlines are included, but if the EU ends up only being able to impose this on EU airlines then it will not be fair. And hopefully with this additional taxation imposed on aviation, which bears some relationship to carbon emissions, the UK will reduce its arbitrary air passenger duty (which has nothing to do with carbon emissions and everything to do with the government wanting to rake money in).

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