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New routes threat from ETS opponents
Countries opposed to the European Union’s emissions trading scheme (ETSEmissions Trading Scheme: Effectively an emissions market where allowances are traded as units of volume e.g. one tonne of carbon dioxide. Participating companies are allocated a number of allowed emissions units of each gas. A company may emit more by purchasing units from the market. Similarly, a company may sell units if they are in excess. The total number of allocation units is fixed and regulated by central and EU government. An ETS imposes a limit on the total emissions according to reduction targets, while allowing companies flexibility. (Source: www.defra.gov.uk)) could ban its airlines from taking part or refuse to discuss new routes with European carriers.
The two options are part of a “basket” of measures agreed at a meeting in Moscow of 26 nations opposed to this year’s introduction of ETS for airlines flying in and out of airports in the EU.
Russia, US, China and India were among the nations taking part in this week’s meeting to decide on the next steps against the EU’s stance on including aviation within ETS.
Other measures which the 26 countries could take include the imposition of retaliatory taxes on EU airlines and lodging formal complaints with the UN’s International Civil Aviation Organisation (ICAOThe International Civil Aviation Organization (ICAO): A UN agency which acts as the global forum for civil aviation. Its main goal is to achieve safe, secure and sustainable development of civil aviation. ).
But the countries have not vowed to take joint action as each government will decide which method of protest against ETS they will adopt individually.
Russia’s deputy transport minister Valery Okulov told a press conference in Moscow: “Every state will choose the most effective and reliable measures that will help to cancel or postpone the implementation of the EU ETS.”
Russian officials also said it was considering a ban on its airlines taking part in ETS – China has already ordered its airlines not to take part. Russia could also impose limits on EU-based airlines flying through its Siberian airspace.
EU officials have said they may be willing to “moderate” their stance on ETS if a deal for a global system can be reached through ICAO. The EU will not start collecting permits for CO2 emissions made by airlines until April 2013.
The countries opposed to ETS are planning to meet again in the summer in Saudi Arabia, according to reports.
Comments
The sooner the EU drop this the better. It has to be a global agreement - trying to go it alone isn't going to achieve anything and will be massively damaging to European Business and Aviation - at a time when it needs all the support it can get - not hindrance.
The statement from today's Moscow meeting is vacuous posturing.
An urgent reality check is needed to offset the notion that the entire aviation industry is a collection of anti-environment ETS-refuseniks. They aren’t: there are already a significant amount of global airlines in full compliance with the EU Aviation ETS regulations.
In fact, “significant” in this case means 100%, as every single airline that flies in and out of the EU has already registered under every aspect of the ETS with their respective regulator in each EU member state; they have met every deadline along the way; and many are active in carbon markets. They have effectively already surrendered.
And here is a snapshot of how ticket prices are already being impacted:
• Etihad Airways, Abu Dhabi's carrier, has increased the fuel surcharge on all its flights to Europe to counter the costs of the EU's Emissions Trading Scheme by USD$3 per passenger for flights into and out of Europe and 0.03 cents per kilogram for cargo shipments. • Delta Air Lines, American Airlines, United Continental and US Airways say they have already added a $3 surcharge each way on tickets for flights between the United States and Europe • ryanair introduced a 0.25 Euro levy per passenger per flight from 17th January to cover its’ ETS costs • Air France/KLM, British Airways and Lufthansa have each added ETS costs to ticket prices via an increase in their existing fuel surcharge although the actual amount is a little opaque • and many other airlines, such as Thai Airways, have already been buying carbon permits, taking advantage of the current record low prices of around 7.9Euros per tonne of carbon. • and earlier this month, Qantas said it would raise fares by A$3.50 ($3.77) per passenger each way on flights to London and Frankfurt, to cover the cost of the EU ETS.
These are low, low pass through levels that will not bring about the collapse of air transport as we know it! Now call me naive but this is compliance, is it not? It is sad but true that all the countries meeting in Moscow later this week appear simply to want to bring about the complete collapse of the EU ETS, nothing more, nothing less.
We know today that growth in global aviation fuel use and emissions through to 2050 unfortunately outpaces the very best that airframe/engine technology, improved ATM systems and smart operational techniques have to offer. And this includes the rather witless promotion of unsustainable biofuels as part of the industry’s PR-led attempt to manufacture consent for unlimited growth. They have nothing to offer but a high carbon future. This is not a destination we should all be hurtling towards at 39,000 feet and 500 miles per hour.
The EU rightly continues to stand firm to protect the integrity of the aviation ETS which clearly should be developed as the global market-based element in a worldwide programme to control and reduce damaging climate change emissions from civil aviation.
Jeffrey Gazzard Board Member Aviation Environment Federation LONDON
Jeff. There is 1 simple solution to the whole debate. Carbon should be taxed at source - i.e. when we pull it out of the ground. The producers have to pay this and the costs will then work work there way up and be passed on to the consumer in whatever form the carbon is taken. This is the most efficient way to do it - but again we would need a global framework for this. You are right the costs as they stand are low - but look at how APD has exploded in price since it's inception. Yes you are right Bio-fuels should be stoppped dead in it's tracks now but as the world population continues to grow you can't stop 7bn people on the planet gaining greater mobility and wanting to see friends, family or do business in other parts of the world. Travelling by air is the only way for people to do this in many cases and the most efficient way.
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