Latest News
Chinese airlines can apply for exemption from EU ETS
- Chinese airlines have been told by the European Union that they can win an exemption from the EU's carbon market if they follow Europe's lead in cutting greenhouse gas emissions from aviation, according to a report in Reuters.
From January 1, 2012, the EU will require all airlines flying to Europe to be included in the Emissions Trading Scheme (ETS), a system that forces polluters to buy permits for each tonne of carbon dioxide they emit above a certain cap. China’s aviation authority have opposed the measure saying that the cost to Chinese airlines will be 800 million yuan (US$123) in the first year and more than triple that by 2020. China maintains that Europe should adjust the ETS to reflect the differences between rich and poor countries.
Many airlines have expressed anger over the proposals fearing higher costs and raising the spectre of a trade fight. The EU scheme covers aircraft emissions from the point of departure, a particular concern for non-EU long-haul carriers.
The row over inclusion of aviation emissions in the EU scheme is a major focus of the June 5-7 annual meeting of the International Air Transport Association in Singapore. The association is the aviation sector's main trade body.
The European Commission, which manages the ETS, wrote a letter to the China Air Transport Association last recently offering a solution -- using provisions in the ETS rules to exempt the airlines of any country that can prove it is taking equivalent steps to cut emissions from aviation.
"The legislation contains provisions which enables the removal of all arriving flights from the scope the EU ETS in the event the third countries implement measures of their own to limit the climate change impact of these flights," said the letter to CATA, sent on May 31.
"The Commission is open to discussing further regarding measures that are being developed to limit the climate impacts of international flights departing China, with a view to these measures being considered equivalent."
US airlines also oppose their inclusion in the ETS but some of Europe’s biggest airlines express satisfaction with the move. The US industry group Air Transport Association of America is challenging the move in EU courts.
