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AVIATION EMISSIONS TRADING & TAXES

Study finds technology and biofuels will not be enough to meet aviation carbon targets without emissions trading | David Lee,Nancy Young
Study finds technology and biofuels will not be enough to meet aviation carbon targets without emissions trading
Wed 6 March 2013 - The aviation industry regards market-based measures (MBMs) as a temporary fix in achieving the carbon-neutral growth (CNG) goal from 2020 onwards until the benefits of new technology and operational advances, together with the uptake of sustainable biofuels, are realised. However, a new study by Prof David Lee of Manchester Metropolitan University (MMU) concludes that CNG through to 2050 cannot be achieved without MBMs such as emissions trading playing a permanent role. The study attempts to quantify the likely mitigation effects of future technology, operational gains and the impact of biofuels against a backdrop of a fast-growing aviation sector. Lee says the study can help inform the current ICAO negotiations, which are moving into an important phase with the next meeting of government officials making up the High-level Group on International Aviation and Climate Change (HGCC) taking place March 25-27. Read more ...

EU ETS ‘stop the clock’ proposal passes crucial test in the European Parliament but faces legal challenges from European airlines | European Parliament,Peter Liese,Willie Walsh,John Hanlon,Simon McNamara,Abdul Wahab Teffaha,Switzerland,Bill Hemmings
EU ETS ‘stop the clock’ proposal passes crucial test in the European Parliament but faces legal challenges from European airlines
Wed 27 Feb 2013 - The European Commission's 'stop the clock' proposal to temporarily suspend the inclusion of intercontinental flights from the EU ETS has moved an important step forward as MEPs on the all-important Environment Committee of the European Parliament unanimously voted in support of the measure. The proposal was announced last November to allow ICAO states to reach a global agreement on market-based measures. However, the MEPs said the derogation should apply for a maximum of one year and only prolonged if "clear and sufficient" progress was made. Although the move has been largely welcomed by the airline industry, the trade association representing low-fare European airlines, ELFAA, revealed last week at the Aviation Carbon 2013 conference that it was preparing to take legal action if the proposal was formally adopted on the grounds that a partial suspension was discriminatory against the intra-EU carriers that remain in the scheme. Willie Walsh, one of Europe's leading airline chiefs, said the EU's Climate Commissioner had lost all credibility over the international dispute. Read more ...

Airlines could require $1.4 billion of carbon offsets annually to help achieve emissions reduction goals | PwC
Airlines could require $1.4 billion of carbon offsets annually to help achieve emissions reduction goals
Mon 17 Dec 2012 - The aviation sector has made good progress on reducing its average emissions intensity by 1.7 per cent each year since 2000, finds a new analysis by PwC. However, the global economy needs to cut carbon intensity by 5.1 per cent every year to 2050 in order to have a good chance of limiting global warming to 2 degrees C, with every sector having to play a role in meeting this goal, including aviation. The sector's ambitious target of halving net emissions by 2050 on 2005 levels is though broadly consistent with the goal but with annual traffic growth of 5 per cent, this will be tough. Continued technological, operational and infrastructure improvements, the purchase of carbon offsets costing around 1.1 billion euros ($1.4bn) yearly until 2031 and rapidly increasing usage of low-carbon fuels will be required, says PwC. A global solution is needed and a failure to adopt a convincing global framework at ICAO later next year would risk re-igniting wider trade tensions, undermine meaningful efforts to reduce aviation carbon emissions and leave regulation in turmoil. Read more ...

EU looks to broaden EU ETS inclusion of international flights from 2014 as it lays out expectations for a global agreement
EU looks to broaden EU ETS inclusion of international flights from 2014 as it lays out expectations for a global agreement
Tue 11 Dec 2012 - Agreement on one of three market-based measures (MBMs) under consideration at ICAO together with a global framework that has the EU regulating outbound international flights in the EU ETS from 2014 are key aims EU officials will be pressing for in the lead up to next year's ICAO Assembly. To diffuse tensions within the ongoing negotiating process in ICAO and in recognition of the progress being made, the European Commission last month proposed to temporarily 'stop the clock' on reporting and compliance obligations on flights to or from airports in third countries and European airports. The EU appears to accept that a global MBM may not be formally adopted until the following Assembly in 2016, with full implementation possibly not until 2020, so is expecting the Assembly to agree a framework that is in line with states applying MBMs of their own to international aviation until the global MBM comes into force. The first meeting of the High-level Group set up by the ICAO Council to look at complex policy and political elements of MBMs gets underway this week. Read more ...

Commission requests swift decision on EU ETS suspension proposal as Obama passes prohibition bill | ICAO,S. 1956
Commission requests swift decision on EU ETS suspension proposal as Obama passes prohibition bill
Fri 30 Nov 2012 - After announcing it would be "stopping the clock" for one year of enforcing the EU ETS on international flights to and from Europe so as to allow ICAO to move forward on developing a global agreement regulating international aviation emissions, the European Commission has published its proposal for a Decision by EU member states and the European Parliament. The Decision temporarily defers enforcement of the EU ETS in respect of incoming and outgoing flights to Europe for one year, pending the outcome of the ICAO Assembly next September. Flights between EEA states, including their dependent territories, plus flights between EEA countries and Switzerland and Croatia are still covered by the scheme and all aircraft operators, regardless of nationality, conducting such flights will still be required to comply with MRV and surrender the necessary allowances by next April. Meanwhile, President Obama signed into law this week the EU ETS Prohibition Act giving the US Secretary of Transportation the authority to prohibit US aircraft operators from taking part in the scheme. Read more ...

ICAO appoints 17 countries to new High-level Group to hammer out important policy issues on aviation MBMs | MBMs,ICAO,Raymond Benjamin
ICAO appoints 17 countries to new High-level Group to hammer out important policy issues on aviation MBMs
Wed 28 Nov 2012 - More details have been released of the High-level Group (HLG) that is being set up to primarily work on political and policy issues surrounding the controversial application of market-based measures (MBMs) to address international aviation emissions. Officials from 17 countries will form the group, representing all geographical regions of the world and include all the major aviation nations. The EU will be represented by Jos Delbeke, Director-General of the European Commission's DG Climate Action, and it is believed Todd Stern, the US Special Envoy for Climate Change, will act for the United States. The HLG will meet for the first time on December 12/13 and will provide recommendations to the ICAO Council and develop a draft resolution on climate change action for submission to the next ICAO Assembly that gets underway in September 2013. Read more ...

Despite EU concession, US Congress passes bill aiming to halt US airline compliance with EU carbon scheme | S. 1956
Despite EU concession, US Congress passes bill aiming to halt US airline compliance with EU carbon scheme
Wed 14 Nov 2012 - Less than 48 hours after the EU had announced it was suspending the inclusion of flights to and from Europe from the EU ETS, the US House approved a Senate version (S. 1956) of a bipartisan bill that aims to prevent US aircraft operators from complying with the EU legislation. The bill, which authorises the Secretary of Transportation to prohibit compliance if deemed in the public interest, was one of the first to be considered after the elections recess and now goes to the President for signature. An amendment by the Senate calls for pursuance through international negotiations of a worldwide approach to address aircraft emissions. Republican co-sponsors of the original House bill, John Mica and Tom Petri, said a positive outcome could still be achieved through ICAO, although Mica warned on the House floor yesterday that ICAO did not set US policy. The final passing of the EU ETS prohibition bill by Congress has been welcomed by US airline and aviation representatives, although US NGOs said the bill was superfluous and counterproductive. Read more ...

European Commission backs down on EU ETS and agrees to 'stop the clock' on international aviation emissions
European Commission backs down on EU ETS and agrees to 'stop the clock' on international aviation emissions
Mon 12 Nov 2012 - EU Climate Commissioner Connie Hedegaard announced this morning the EU will suspend enforcement of the EU Emissions Trading Scheme (EU ETS) to airlines flying to and from Europe in order to allow ICAO to continue its progress towards a global emissions reduction scheme. The EU ETS will continue to apply to intra-EU traffic so European carriers will still be required to monitor, report and verify their CO2 emissions on flights within the EU, and surrender the required allowances by 30 April 2013. However, Hedegaard made clear that the suspension of the scheme applying to international flights would automatically be lifted in a year's time if ICAO failed to deliver an agreement on "meaningful international action" over aviation emissions. The move comes after what the EU sees as significant progress at Friday's meeting of ICAO's governing Council, which agreed to set up a High-level group of 15 senior government representatives to provide guidance on policy issues to the expert group currently working on market-based measure (MBM) options and an implementation framework. (updated Nov 13Read more ...

Calls for decision-making and commitment as ICAO Council gathers for important meeting on MBM progress | T&E,ICAO Council
Calls for decision-making and commitment as ICAO Council gathers for important meeting on MBM progress
Thu 8 Nov 2012 - A meeting tomorrow of the ICAO Council, the governing body of the International Civil Aviation Organisation, will consider progress by an expert working group set up to study options and a framework on global market-based measures (MBMs) to cap international aviation emissions. Consensus by the Council's 36 member states on implementation is required before a proposal can be put to ICAO's triennial Assembly next September. Despite hopes earlier in the year for an agreement to be reached by the end of 2012, there is little expectation of a major breakthrough in this session, leaving the following meeting next March as crucial. On the eve of tomorrow's meeting, 25 NGOs from Europe, Australia and the United States have sent an open letter to ICAO's top officials and member state representatives calling on them to redouble efforts and take the necessary decisions on key parameters for agreement by the March meeting. Read more ...

Failure to solve US aviation dispute with Europe over EU ETS would pose enormous international trade and climate risks | Climate Advisers,GMF,S.1956
Failure to solve US aviation dispute with Europe over EU ETS would pose enormous international trade and climate risks
Wed 7 Nov 2012 - The United States dispute with Europe over the inclusion of its carriers in the EU ETS is a test case on a matter of truly historic importance, says a policy brief from Washington, DC-based consultancy Climate Advisers. Failure to reach a solution would pose enormous risks not only for transatlantic trade relations but also for the global climate and trade systems. Many of the perceptions over the "transatlantic turbulence" have rested on a number of myths in the US, say the authors. They warn policymakers that in their attempts to protect the nation's airlines, the United States risks establishing a trade principle it will deeply regret later. With Europe, the US and the major emerging economies led by China far apart on when aviation emissions should be capped, there is little evidence that the 15-year stalemate at ICAO is likely to be broken in favour of a global consensus solution "any time soon", they add, and the US and Europe should seek a bilateral agreement. Read more ...

Carbon offsetting rather than emissions trading becoming favoured route as ICAO looks towards a global scheme  | British Airways,LOT,AACO
Carbon offsetting rather than emissions trading becoming favoured route as ICAO looks towards a global scheme
Fri 5 Oct 2012 - As ICAO expert groups continue their work on a global market-based approach to limiting the growth of international aviation emissions, it is beginning to emerge that carbon offsetting, rather than emissions trading, is the favoured option for States and industry. Emissions trading is technically the correct instrument but offsetting could be an interim approach on the road to a global emissions trading scheme, believes British Airways' Environment Policy Manager, Andy Kershaw. However, difficult challenges still face the ICAO process and will require strong political will to achieve an agreement by the time of its Assembly later next year, he told a Brussels conference. At the same conference, Abdul Wahab Teffaha, Secretary General of the Arab Air Carriers Organisation, called on the EU to halt its unilateral inclusion of foreign airlines into its carbon emissions scheme and give the ICAO process a chance. According to reports, Saudi Arabia has joined China and India in instructing its national airline not to comply with the EU ETS legislation. Read more ...

Senate unanimously passes bill to protect US airlines from EU ETS but elections will slow down progress | S. 1956,H.R. 2594,EDF,Thune,McCaskill
Senate unanimously passes bill to protect US airlines from EU ETS but elections will slow down progress
Mon 24 Sept 2012 - In the early hours of Saturday morning, the US Senate passed the bipartisan S. 1956 bill that gives power to the US Secretary of Transportation to prohibit the nation's civil aircraft operators from participating in the EU Emissions Trading Scheme. A similar bill (H.R. 2594) has already passed through the House but because of Senate amendments the bill must now go back to the House for approval. However, both are now in recess until after the congressional and presidential elections on November 6 and the legislation, if passed, will then require presidential signature. The amendments call for a reassessment of prohibition in the event the EU amends its own Directive, an international agreement to address aircraft emissions is reached or if the United States enacts its own rules to address the issue. Trade body Airlines for America (A4A) commended the successful passage of the bill through the Senate while EU Climate Commissioner Connie Hedegaard welcomed the bill's call for pursuance of a global deal but said the US would need to change its approach in ICAO. Read more ...

EU states deny reports that their Airbus ministers seek suspension of EU ETS until ICAO agreement
EU states deny reports that their Airbus ministers seek suspension of EU ETS until ICAO agreement
Thu 13 Sept 2012 - Reports by Reuters and other media that government officials from the four EU states that have a stake in Airbus aircraft manufacturing - the so-called 'Airbus ministers' - are seeking a suspension of the Aviation EU Emissions Trading Scheme (EU ETS) have been described as inaccurate by two of the governments concerned. According to the reports, British and German junior ministers attending a meeting at this week's ILA Berlin Air Show, along with their French and Spanish counterparts, will urge their governments to push for a suspension until the next ICAO Assembly in September 2013, when a global agreement on carbon emissions is hoped to be reached. The ministers have been persuaded that the threat of retaliatory action by countries opposed to the application of the EU ETS to their airlines, such as China, could lead to a loss of lucrative Airbus orders.  Read more ...

Washington meeting reaffirms opposition to EU ETS and commits to ICAO progress but a global MBM some way off | Coalition of unwilling,Delhi,Moscow,Article 84,S.1956
Washington meeting reaffirms opposition to EU ETS and commits to ICAO progress but a global MBM some way off
Thu 2 Aug 2012 - The 17 countries attending the meeting held in Washington that concluded yesterday have reaffirmed their opposition to the application of the EU ETS to non-EU carriers and say they remain committed to the actions to reduce international aviation emissions agreed in the ICAO Assembly Resolution A37-19 of 2010. They said significant steps have been taken since then in implementing the resolution and they intended to move forward, nationally and in ICAO, on elements such as the aspirational 2020 carbon-neutral growth goal and the "appropriate role" of market-based measures. However, in a briefing afterwards, a senior US Administration official present at the meeting said the 2010 resolution did not call for the production of such a measure, only to explore the feasibility, and he believed it would take "a substantial period of time" before a global measure could be agreed and there was no basis for expecting an agreement by the 2013 Assembly. No plans had been taken by the US to file an Article 84 complaint at ICAO over the EU scheme, he said. Read more ...

Senate bill to block US airlines and aircraft operators from EU ETS compliance takes major step forward | S.1956,EDF,Senate,Thune,Kerry
Senate bill to block US airlines and aircraft operators from EU ETS compliance takes major step forward
Wed 1 Aug 2012 - A confrontation between the United States and Europe over the EU Emissions Trading Scheme (EU ETS) has moved a step closer with the unanimous approval by a US Senate Committee of legislation that aims to block US airlines and aircraft operators from participating in the scheme. The S.1956 bipartisan bill does not automatically enact the prohibition but instead provides the Secretary of Transportation with the authority to do so if considered in the public interest and taking into account other impacts. In order to satisfy some potential Committee members who were not entirely supportive, notably Democrat Senators John Kerry and Barbara Boxer, the bill has been amended to direct US officials to conduct international negotiations "to pursue a worldwide approach to address aircraft emissions". With a similar bill having already been approved in the House of Representatives, the bill now passes to the Senate floor, where its sponsors intend to press for a quick passage. Read more ...

European airlines criticise moves to artificially inflate price of carbon allowances under EU ETS auction proposal | AEA
European airlines criticise moves to artificially inflate price of carbon allowances under EU ETS auction proposal
Tue 31 July 2012 - The Association of European Airlines (AEA), which represents 33 European network carriers, has condemned proposals by the European Commission to change the timing of EU ETS allowance auctions in an effort to boost a flagging carbon price, which has now fallen below the seven euro mark. By delaying auctions of Phase III (2013-20) allowances until later in the period, the Commission is hoping to stem the flood of surplus allowances in a market that is already oversupplied. However, the AEA argues that this interference fundamentally changes the principles of a trading scheme defined as a market-based measure. It claims the proposal, announced by Climate Action Commissioner Connie Hedegaard last week, would have a further detrimental effect on European airlines already forecasted to lose 1.5 billion euros this year. Read more ...

Rio, Kyoto, Brussels and Chicago: Reconciling principles related to international air transport emissions | Chris Lyle
Rio, Kyoto, Brussels and Chicago: Reconciling principles related to international air transport emissions
Fri 27 July 2012 – Last month’s Rio+20 summit was notable for its lack of ambition and goals although it did reaffirm the principle of ‘common but differentiated responsibilities’ (CBDR), despite recorded objections from Japan and the United States. The principle evolved under the Kyoto Protocol into responsibility for pursuing limitation or reduction of GHGs falling on the industrialised States, not the developing world. Reconciling this with the ICAO non-discrimination principle has proved extremely difficult in moves towards a global agreement through the UN agency on mitigating international aviation emissions. However, as an ICAO Ad hoc Working Group makes progress on an all-important market-based mechanism to limit the growth of net emissions, consensus needs to be found on a global model that reflects the differing circumstances of States. The concept of differentiation by route grouping has come under consideration at ICAO. Chris Lyle (right) explains how this might work in practice, and also looks at the formidable challenges that still lie ahead. Read more ...

Change of direction promised by US as talks start in Washington of countries opposed to international aviation inclusion in EU ETS | US DOT,LaHood,Petsonk,Hedegaard,US Senate,EDF
Change of direction promised by US as talks start in Washington of countries opposed to international aviation inclusion in EU ETS
Tue 31 July 2013 - The third meeting of countries opposed to the inclusion of the airlines into the EU Emissions Trading Scheme (EU ETS) starts today in Washington DC with a pledge by a senior US Administration official that the tone will different on this occasion. Speaking to reporters yesterday, he said the purpose would be to try to explore whether there might be a basis for a global solution on aviation greenhouse gas emissions. He said an aspirational goal had been agreed at ICAO in 2010 of limiting the growth of emissions from 2020 and should a global solution be found, the EU would have to set aside its scheme in the near term. The two-day meeting is expected to be attended by 16 so far unnamed countries, down from the 26 that attended the first meeting in Delhi last September. The EU's Climate Commissioner, Connie Hedegaard, challenged the countries to come up with concrete proposals for a substantial reduction in aviation emissions. Meanwhile, a US Senate hearing today will decide the next step in progress of a bill to prohibit US carriers from participating in the EU ETS. Read more ...

ICAO Council agrees to further narrow down MBM options as work towards a global emissions deal progresses | ICAO Council,MBMs
ICAO Council agrees to further narrow down MBM options as work towards a global emissions deal progresses
Mon 2 July 2012 - Last week's meeting of the ICAO Council has resulted in the dropping of one of the four market-based measures under consideration by a special working group as the UN agency seeks to deliver a global agreement on limiting the growth of international aviation emissions. Originally six measures were under consideration but a global departure levy and a carbon levy were dropped as options at the previous Council meeting in March. A fourth option, an emissions trading baseline and credit system, has now also been discounted as it is seen as similar to one of the other options, a global mandatory offsetting scheme. Despite hopes being raised of an agreement being in place before the end of the year, there is still much work to be done by the group before a proposal can be agreed by the Council - which itself is far from unanimous on this controversial issue - and put forward to the ICAO Assembly in late 2013. Read more ...

Switzerland draws up regulation to include international aviation in its ETS as it negotiates linkage with the EU ETS | VerifAvia,Green Aviation Solutions,Switzerland
Switzerland draws up regulation to include international aviation in its ETS as it negotiates linkage with the EU ETS
Mon 25 June 2012 - Switzerland is to demand all aircraft operators, domestic and international, serving its airports to record tonne-kilometre (TK) data from 1 January 2013, with the submission of monitoring plans for approval required by the end of this September. The move follows ongoing discussions between the European Union and Switzerland on linking the EU ETS and the Swiss ETS from 2014, with the EU insisting that Switzerland includes civil aviation emissions as well as those from stationary installations in the Swiss scheme. In anticipation that the negotiations prove successful, all aircraft operators operating to and from Swiss airports above the de minimis set under the EU ETS will be required to join the Swiss ETS from 2014. While there should be little administrative burden as most airlines likely to be impacted will be already monitoring and reporting the data to their relevant EU authority, airlines from countries already in dispute with the EU will be faced with another dilemma as non-compliance carries potential Swiss fines. Read more ...

Encouraging progress at ICAO on developing a market-based measure should not be undermined by Europe, says IATA | Rio+20,IATA AGM
Encouraging progress at ICAO on developing a market-based measure should not be undermined by Europe, says IATA
Fri 15 June 2012 - With countries focused as never before on reaching a global agreement on economic measures to reduce aviation emissions, Europe should seize the moment and take action to diffuse the current international conflict over the EU ETS, said Tony Tyler, IATA's Director General, at the airline association's AGM in Beijing earlier this week. He said Europe's unilateral and extra-territorial inclusion of international aviation in its scheme was creating discord when harmony was needed at a time when recent progress at ICAO on proposals for a solution was very encouraging. As a key driver of growth, jobs and prosperity, he called on governments to be stronger partners in maximising the economic and social benefits aviation can bring as it grows by an expected 5 per cent annually to 2030. IATA revealed that preliminary data showed average fuel efficiency across the industry improved 2.4 per cent from 2009 to 2011 compared to its goal of an average 1.5 per cent annually to 2020. Read more ...

US senators urge Obama Administration to back their EU ETS airline prohibition bill and file ICAO Article 84 challenge | ECJ,EDF,A4A,NBAA,ALPA,Delbeke,LaHood
US senators urge Obama Administration to back their EU ETS airline prohibition bill and file ICAO Article 84 challenge
Tue 12 June 2012 - The United States government remains strongly opposed on both legal and policy grounds to the inclusion of US airlines into the EU ETS, Transportation Secretary Ray LaHood (left) told a Senate hearing last Wednesday. An approach from himself and State Secretary Hillary Clinton to the European Commission and EU member states over the issue had met with a disappointing response, he said. Despite the EU's "Lone Ranger" unilateral application of a "lousy" policy, LaHood said no decisions had been made by the Administration on what to do next and rebuffed repeated attempts by senators to get him to back an Article 84 challenge at ICAO or a bipartisan bill before the Senate that would prohibit US aircraft operators from joining the EU scheme. Also appearing before the hearing was the Commission's Climate Action Director-General, Jos Delbeke, but he failed to persuade senators that the scheme was not a tax and that revenues would be used for environmental purposes. Also providing testimony to the committee were aviation industry representatives, including A4A, and US environmental organisation EDF. Read more ...

European airline chiefs slam "arrogant" bureaucrats over ETS and also EU governments for hindering single sky progress | Willie Walsh,Christoph Franz,Steve Ridgway,Bernard Gustin,AEA,Association of European Airlines
European airline chiefs slam "arrogant" bureaucrats over ETS and also EU governments for hindering single sky progress
Mon 28 May 2012 - At a time when the European airline industry could help stimulate economic growth, politicians and regulators were holding back development through damaging regulations such as the EU Emissions Trading Scheme (ETS) and stifling progress on a Single European Sky. This was the message from a press conference held by European airline CEOs meeting in Brussels on Thursday, who are particularly angered by a perceived EU failure to avoid an impending trade war over the ETS. IAG's Willie Walsh called on the Commission to put aside its "posturing" and "arrogant approach" over the current stand-off with countries such as India and China and help negotiate a global solution to aviation carbon emissions. Bernard Gustin, Chairman of the Association of European Airlines (AEA), said Europe had decided to teach the world a lesson on the environment but instead had invited retaliation. Read more ...

Indian and Chinese airlines set one-month compliance deadline having failed to submit emissions reports on time | China,India,coalition of the unwilling
Indian and Chinese airlines set one-month compliance deadline having failed to submit emissions reports on time
Tue 15 May 2012 - According to the European Commission, 1,200 aircraft operators have submitted their 2011 EU ETS emissions reports by the 31 March 2012 deadline but it appears Indian and Chinese airlines have heeded instructions from their authorities and failed to comply. Letters have been sent out today to the 10 airlines involved by the competent authorities of the relevant EU member states requesting receipt of their reports by June 15 in accordance with EU and national legislation. The Commission points out that almost all commercial airlines with significant operations to or from EU airports have reported on time and the 10 airlines concerned represent less than 3 per cent of aviation emissions covered by the scheme. Elsewhere in Brussels today, EU finance ministers have agreed that revenues from the auction of EU ETS aviation allowances could be used to support climate action in developing countries. (Updated May 16 & 18Read more ...

International Airline Group and easyJet in no rush to pass on EU ETS charges as they reveal costs in latest accounts | EasyJet,IAG,Lufthansa
International Airline Group and easyJet in no rush to pass on EU ETS charges as they reveal costs in latest accounts
Mon 14 May 2012 - Whereas some major international airlines flying to Europe like Delta, American, United, US Airways and Qantas have already added specific surcharges to their European routes to cover their EU ETS costs, apart from Ryanair, the larger EU carriers have yet to declare their hand. However, with the scheme now in operation and carriers already purchasing permits to cover the anticipated shortfall in their 2012 emissions permit requirements, the costs are finding their way onto airline balance sheets. Two of Europe's biggest airline operators, easyJet and International Airlines Group (IAG, the parent company of British Airways and Iberia), have both quoted EU ETS costs in their latest accounts that cover the first quarter of 2012. Both though remain reluctant to spell out when, and by how much, they intend to pass on the costs to customers. Read more ...

The inclusion of international airlines into the EU ETS is largely compatible with world trade rules, finds study | Lorand Bartels,World Trade Organization,WTO,ECJ,Robert Howse
The inclusion of international airlines into the EU ETS is largely compatible with world trade rules, finds study
Thu 3 May 2012 - The legal case against the inclusion of international aviation into the EU Emissions Trading Scheme (EU ETS) has centred on whether the EU has the power to regulate emissions produced outside the EU. Another question is whether the EU's scheme is consistent with its obligations under applicable bilateral and multilateral agreements governing air transport services. A third question, which has been raised by India, amongst others, is whether it is compatible with the EU's World Trade Organization (WTO) obligations. This latter challenge is the subject of a paper by Dr Lorand Bartels of the Faculty of Law at the University of Cambridge. Bartels concludes that despite the complexities of WTO law, the EU scheme in the main is justifiable on environmental grounds and it is likely a WTO panel would lack jurisdiction to determine on a violation until ICAO remedies had been exhausted. Read more ...

US representative to ICAO says general consensus remains that market measures should only be implemented from 2020 | Duane Woerth,US Chamber of Commerce
US representative to ICAO says general consensus remains that market measures should only be implemented from 2020
Fri 27 Apr 2012 - The general consensus within ICAO since 2007 has been that market-based measures (MBMs) to limit the growth of aviation emissions will not come into play until 2020, said the United States permanent representative and ambassador to ICAO, Duane Woerth, at a recent US Chamber of Commerce aviation conference in Washington. That consensus, although not unanimous, has so far remained the same, he believed. Whether the 2013 Assembly produced a different consensus, "we will all have to wait and see," said the unconvinced US envoy. He was critical of the slow progress at ICAO to deliver on a CO2 standard for airframes and engines that is due to be produced in 2013, which was, in his opinion, being held up by a failure to agree on variables and metrics. Read more ...

US and India warn Europe that row over Aviation EU ETS could derail global climate change negotiations | Delhi Declaration,Moscow Declaration,India,Todd Stern
US and India warn Europe that row over Aviation EU ETS could derail global climate change negotiations
Wed 18 Apr 2012 - The US special envoy for climate change, Todd Stern, has warned that the inclusion of foreign airlines in the EU Emissions Trading Scheme (EU ETS) could hold up global climate change talks. Speaking at an energy and climate forum of major economies in Rome yesterday, Stern said that just because progress on a global agreement over aviation emissions reductions at ICAO had proved difficult, "it did not mean the multilateral approach should be thrown away." Last week, India's environment minister, Jayanthi Natarajan, said the EU scheme was "a deal-breaker" for the global talks on climate change. While US carriers continue to comply under protest with the EU ETS, Indian airlines serving Europe have been forbidden to take part and it is understood the two airlines involved, Air India and Jet Airways, have failed to submit their 2011 emissions reports by the March 31 deadline, leaving open the possibility of fines by their UK authority. Read more ...

US airlines give up on legal case against inclusion into the EU ETS but call on their government to step up retaliatory action | ATA,EDF,Liese,Hedegaard,Groote
US airlines give up on legal case against inclusion into the EU ETS but call on their government to step up retaliatory action
Thu 29 March 2012 - The two-year-long lawsuit brought against the UK government by three major US airlines and their trade association over their inclusion in the EU Emissions Trading Scheme has formally come to an end. The case had been referred to the European Court of Justice (ECJ), which found against the US arguments last December and ruled the scheme was consistent with international law. It had been expected that new claims would be submitted by the plaintiffs when the case was heard again by the High Court in London today but instead they withdrew the lawsuit, with Airlines for America explaining only that it had been "appropriately ended". A4A said it and its members remained steadfastly opposed to the scheme being applied to US airlines and aircraft operators and were committed to seeing it overturned. Environmental NGOs that sided with the EU in the case welcomed the ending of the case but expressed concern that the battlefield was being moved elsewhere. Read more ...

South African tourism minister calls for two-year suspension of aviation EU ETS to allow global deal at ICAO | Aviation & Environment Summit 2012,South Africa,Marthinus van Schalkwyk
South African tourism minister calls for two-year suspension of aviation EU ETS to allow global deal at ICAO
Fri 23 March 2012 - The creation of a legally-binding global sectoral cap-and-trade emissions trading scheme for aviation is long overdue, South Africa's Tourism Minister Marthinus van Schalkwyk told delegates at this week's Aviation & Environment Summit in Geneva. He criticised the "15 years of intransigence and doublespeak" at ICAO, where "too many vested interests" had frustrated the political process. However, he had sharp words for Europe's Emissions Trading Scheme, the introduction of which, he said, had left a bitter aftertaste. He called on the EU to suspend the extension of the ETS to aviation for two years in order to give the ICAO negotiating parties a chance to conclude negotiations on a global scheme. The minister added slowing down aviation and tourism growth was in no-one's interest but the two sectors shared a responsibility to address their growing carbon footprint. Read more ...

Concerns over CBDR fail to halt important ICAO Council agreement to move forward on evaluating market-based measures | ICAO,Kobeh,Rio+20
Concerns over CBDR fail to halt important ICAO Council agreement to move forward on evaluating market-based measures
Fri 16 March 2012 - Despite deep reservations by a number of major developing states over CBDR, an agreement was reached by ICAO Council members on Wednesday that work should continue on finding a market-based system that would enable the international aviation industry to offset growth in carbon emissions. The high-profile importance of this issue has become a major challenge for the UN agency as the dispute between Europe and other major powers over the EU ETS continues to escalate. The general consensus reached at the Council, however, should be viewed as welcome progress after a stormy previous meeting left the EU isolated following the adoption of a resolution condemning its carbon scheme. The President of the ICAO Council, Roberto Kobeh Gonzalez said he was very pleased with the outcome and is optimistic a plan can be presented at next year’s ICAO Assembly. Read more ...

European air transport bosses urge EU leaders to find an international compromise over EU ETS conflict
European air transport bosses urge EU leaders to find an international compromise over EU ETS conflict
Mon 12 March 2012 - The CEOs of nine leading European aerospace manufacturers and airlines have written letters to the Prime Ministers of France, Germany, Spain and the United Kingdom to put a stop to the growing probability of a trade conflict with China and other major nations over the EU ETS. Airbus, which fears a damaging loss of orders for its aircraft, has been joined by major European flag carriers such as Air France, Lufthansa, Iberia and British Airways, as well as Virgin Atlantic, Air Berlin, Safran and MTU Aero Engines, in believing they face serious consequences over the EU carbon scheme. Read more ...

US legislation to prohibit airlines from joining EU ETS moves a step closer as Senate bill receives bipartisan support | John Thune,Claire Mccaskill,S.1956
US legislation to prohibit airlines from joining EU ETS moves a step closer as Senate bill receives bipartisan support
Thu 8 March 2012 - A bill introduced into the US upper house by Republican Senator John Thune that would prohibit US aircraft operators from participating in the EU ETS has received backing from Senator Claire McCaskill, a Democrat. As the Democrats hold the balance of power in the Senate this bipartisan approach could prove crucial in progress of the proposed legislation. Russia too is preparing similar legislation to prevent its carriers from participating in Europe's emissions reduction scheme and the Ministry of Transport is working with the Russian parliament (the Duma) on preparing a draft law, expected before mid-year. In a bid to head off a damaging confrontation between the EU and its opponents, an upcoming meeting of the ICAO Council is due to consider a number of proposals on possible market-based measures that could form the basis for a global agreement. Meanwhile, a US study concludes airline profits could increase in the short term as a result of the EU ETS. Read more ...

Coalition of states comes up with basket of countermeasures over EU ETS but falls short of a coordinated attack | Delhi Declaration,Moscow Declaration
Coalition of states comes up with basket of countermeasures over EU ETS but falls short of a coordinated attack
Thu 23 Feb 2012 - Of the 29 or so countries who met this week to discuss measures to derail the EU's inclusion of third country airlines and operators into the EU ETS, 23 of them signed a joint declaration calling on the EU and its member states to cease application of the directive and said they would "consider" measures and actions if the EU failed to respond. Even though the tone of the declaration is less confrontational than some expected, it is thought Canada, Egypt and the UAE abstained from the final agreement. The "coalition of the unwilling", as it has been dubbed, has come up with a list of eight possible measures the signatories could take in retaliation, including filing an Article 84 dispute application at ICAO and prohibiting their carriers from participating in the EU carbon reduction scheme. An earlier draft suggestion on re-opening existing wider trade agreements and negotiations with the EU was dropped from the final adopted text. Read more ...

Governments meet in Moscow to debate action against the EU’s inclusion of their airlines in carbon scheme | Delhi Declaration,Green Climate Fund
Governments meet in Moscow to debate action against the EU’s inclusion of their airlines in carbon scheme
Tue 21 Feb 2012 - A two-day meeting of 26 countries opposed to the inclusion of non-EU airlines into the EU Emissions Trading Scheme (EU ETS) gets underway in Moscow today to consider potential countermeasures. Action could include barring national airlines from taking part in the scheme, invoking an Article 84 legal procedure at ICAO or taking retaliatory action against European carriers or aerospace manufacturers. Two of the countries involved - China and the United States - have already made moves to ban their carriers from complying with the legislation. However, with a fragile global economy, there is recognition that a trade war is in no one's interest and both sides would prefer to see a resolution through ICAO, where moves towards a global market-based mechanism are being accelerated. Meanwhile, not content with making airlines pay for their climate impact through the EU ETS, EU finance ministers are eyeing the industry as a contributor to the UN Green Climate Fund. Read more ...

Weak carbon price sees market analysts sharply downgrading forecasts of EU ETS cost to airlines in 2012 | Aviation Carbon 2012,Point Carbon,Barclays Capital,RDC Aviation
Weak carbon price sees market analysts sharply downgrading forecasts of EU ETS cost to airlines in 2012
Mon 20 Feb 2012 - Despite a rebound in the price of European carbon prices late last week, analysts at Thomson Reuters Point Carbon have halved their estimate made last September of the cost of the EU ETS to airlines. Point Carbon has calculated airlines covered by the scheme will have to pay around 500 million euros ($660m) for the required permits to cover a potential shortfall of 59 million tonnes of CO2 this year, at an average estimated price of 8.50 euros ($11.25) per tonne. Barclays Capital put the overall 2012 cost even lower - around 300 million euros ($400m) - which an analyst described as "a drop in the ocean" compared to the cost of jet fuel. Meanwhile, Middle East carrier Etihad has announced a carbon surcharge of $3 per passenger for flights into and out of Europe from March 1, following similar surcharges being imposed by Qantas and major US carriers. Read more ...

The prospect of EU ETS non-compliance by foreign airlines fills European carriers with grim foreboding | Aviation Carbon 2012
The prospect of EU ETS non-compliance by foreign airlines fills European carriers with grim foreboding
Fri 17 Feb 2012 - While European airlines remain supportive of carbon pricing as the most effective way of dealing with the industry's emissions, they are becoming increasingly alarmed with events on the wider political international stage that could see them competitively disadvantaged under the EU ETS. Despite differences on the scope of the scheme, international and regional airline representatives have expressed deep concerns over the potential impact of airlines operating to Europe that are prohibited by their governments from complying with the EU legislation. At a London conference last week, British Airways called for an exemption for all airlines on routes affected by non-compliance issues or financial compensation where retaliatory measures are enforced by foreign regulators. A European Commission representative said there was no question of amending or suspending the scheme but said the EU would continue to support a global approach through ICAO. Read more ...

Countries opposing EU ETS to convene second meeting within weeks to discuss retaliatory action against Europe | Delhi declaration
Countries opposing EU ETS to convene second meeting within weeks to discuss retaliatory action against Europe
Tue 24 Jan 2012 - Following the Delhi meeting of 26 countries at the end of September to discuss moves to jointly oppose the inclusion of their airlines in the EU Emissions Trading Scheme (EU ETS), a second meeting is planned to take place either in Delhi or Moscow early next month. The first meeting resulted in the Delhi Declaration, which led to the ICAO Council adopting in November a similar declaration put forward by the coalition of nations including India, China, Brazil and the United States. Indian officials are believed to be in the United States this week to agree their positions ahead of the second meeting. ICAO Secretary General Raymond Benjamin recently pledged to accelerate moves towards developing a global market-based system in a move to head off international confrontation over the European carbon scheme, including a possible Article 84 legal challenge by the US. Read more ...

Airlines greet the unwelcome arrival of the EU ETS with passenger surcharges to cover their anticipated costs
Airlines greet the unwelcome arrival of the EU ETS with passenger surcharges to cover their anticipated costs
Wed 18 Jan 2012 - There were no fireworks on January 1 to usher in the introduction of the EU Emissions Trading Scheme (EU ETS) for airlines serving European airports, just disgruntled announcements by a number of major airlines - including Lufthansa and Ryanair - that passengers would face an increase in their fares to cover the costs of compliance. US airlines too have introduced surcharges on transatlantic routes but won't publicly attribute them to the EU scheme. Up till now, airlines have generally refused to reveal whether they would soak up the costs or pass them on to customers but the early signs are that many will decide on the latter course of action. A paper by MIT's Department of Aeronautics and Astronautics finds the economic impact of the EU ETS on US airlines is likely to be small, with a potential for windfall gains under the current permit allocation rules.  Read more ...

Difficulties remain on moves towards a global solution on aviation emissions but Durban talks bring some hope | COP 17
Difficulties remain on moves towards a global solution on aviation emissions but Durban talks bring some hope
Tue 13 Dec 2011 - The now familiar pattern of a last-minute balancing act between success and failure at UNFCCC COP climate negotiations at least this time resulted in decisions taken at COP 17 in Durban that will lead the process through the rest of the decade. More so than in recent years, international aviation received some high-profile attention, mainly as a result of discussions over sources of long-term funding for the Green Climate Fund (GCF) and an attempt by India to raise the issue of unilateral trade measures imposed by richer countries at the expense of the developing world, a move partly aimed at heading off the inclusion by Europe of airlines from non-Annex I countries into the EU ETS. Once again, negotiations over action on dealing with emissions reduction from international aviation and shipping (bunkers) got nowhere. With the winding up of the working group concerned (AWG-LCA) by the time of the next COP in Qatar, to be replaced by another, difficulties remain on how to deal with conflicting UN principles. Read more ...

Following House passage, mirror bill introduced into US Senate to block US airlines from participating in EU ETS | H.R. 2594,ECJ,COP17
Following House passage, mirror bill introduced into US Senate to block US airlines from participating in EU ETS
Thu 8 Dec 2011 - Following the adoption of the H.R. 2594 bill in the US House of Representatives late October, Senator John Thune has introduced a mirror bill in the Senate. The bill instructs the US Secretary of Transportation to prohibit US civil aircraft operators from participating in what it describes as the EU's unilaterally established scheme, similar language to that of H.R. 2594. The move was welcomed by trade body Airlines for America, formerly the Air Transport Association, who estimate the EU ETS will cost US airlines and passengers more than $3.1 billion between 2012 and 2020. The EU ETS issue is to be discussed at a regular meeting coincidentally being held today of EU and US representatives under the US-EU bilateral Open Skies air transport agreement. Meanwhile, the EU's Connie Hedegaard yesterday said the EU would not change its legislation Read more ...

US DOT official warns of damaging trade war between US and EU over EU ETS as ECJ announces date of ruling on US airline case | ECJ,Delhi Declaration
US DOT official warns of damaging trade war between US and EU over EU ETS as ECJ announces date of ruling on US airline case
Tue 6 Dec 2011 - The EU will find it very difficult to enforce its unilateral Aviation EU ETS legislation on the rest of the world, Paul Gretch, Director of the Office of International Aviation at the US Department of Transportation (DOT), told a London conference today. "I fear we're heading towards a trade war airlines and the economy cannot afford," he said, adding that despite an anticipated ruling by the European Court of Justice to the contrary, the scheme was illegal and contravened US-EU bilateral agreements. Gretch revealed that President Obama had "forcibly" made clear the US opposition to European Commission President Barroso at a recent summit meeting. Meanwhile, the European Court of Justice is now expected to deliver its ruling on December 21 concerning the case brought by US airlines over their inclusion in the EU ETS. Read more ...

India seeks to raise opposition to unilateral trade measures at COP 17 in attempt to derail Aviation EU ETS | UNFCCC,COP 15,COP 16,COP 17,The Climate Group,
India seeks to raise opposition to unilateral trade measures at COP 17 in attempt to derail Aviation EU ETS
Mon 28 Nov 2011 - The UNFCCC COP 17 climate talks get underway today in Durban with little of the expectations that have been a feature in recent years, notably Copenhagen in 2009. With the Kyoto Protocol expiring next year and no enthusiasm from developed countries outside of Europe, Australia and New Zealand for its extension, a new binding deal is not now expected before 2015 at the earliest. Without a new deal, the chances of reaching a global agreement on ambitious binding emissions reduction targets for international aviation look similarly slim for the foreseeable future. Attempts at progressing negotiations on aviation and shipping emissions in the UNFCCC AWG-LCA stream have so far produced little, although they will continue during the Durban session. Interest by aviation industry representatives attending COP 17 is likely to focus on a possible contribution to the $100 billion Green Climate Fund from an airline levy and also an item submitted by India for the main agenda concerning unilateral trade measures. Read more ...

UN environment chief slams airlines for their opposition to the EU ETS - "They should be champions of the scheme" | UNEP,Durban,COP 17
UN environment chief slams airlines for their opposition to the EU ETS - "They should be champions of the scheme"
Wed 23 Nov 2011 - Achim Steiner, Executive Director of the United Nations Environment Programme (UNEP) and UN Under-Secretary-General, today described as "very regrettable" the actions of airlines who were opposing the introduction of the EU Emissions Trading Scheme (EU ETS). He said it was wrong to expect others less fortunate to pay the environmental cost of the emissions of those who took flights and said the issue merited much more public discussion. Steiner made his remarks via video link from UNEP's Nairobi HQ during the launch of its scientific report 'Bridging the Emissions Gap' ahead of next week's UN COP 17 climate talks in Durban and next year's Rio+20 summit. The report devotes a chapter to global aviation and shipping emissions and how the two sectors could contribute to narrowing the gap by 2020. Read more ...

European politicians call on EU to ensure international aviation emissions are addressed at Durban climate talks | UNFCCC,European Parliament,Peter Liese,AWG-LCA,SBSTA,COP 17
European politicians call on EU to ensure international aviation emissions are addressed at Durban climate talks
Fri 18 Nov 2011 - In a resolution adopted at a plenary session of the European Parliament, MEPs have urged the European Union to push for binding reduction targets on international aviation emissions at the forthcoming UNFCCC COP 17 climate talks in Durban. Negotiations at UNFCCC over international aviation and maritime carbon emissions have been largely stalled for some time and the MEPs say resolution of the issue has become increasingly pressing. The MEPs have also called on the EU to back a second commitment period of the Kyoto Protocol post-2012 and agree a legally binding commitment. In its report to be presented during COP 17, ICAO says it is taking active steps towards developing global solutions to tackling aviation GHG emissions. Read more ...

States opposed to Europe's emissions trading scheme win ICAO Council backing but EU remains defiant | ICAO Council
States opposed to Europe's emissions trading scheme win ICAO Council backing but EU remains defiant
Thu 3 Nov 2011 - The working paper submitted by 26 states - including China, Russia, India and the United States - that calls on the EU and its member states to exclude non-EU carriers from the EU ETS was endorsed by the ICAO Council yesterday. All 26 states are members of the 36-strong Council, leaving 8 EU states to oppose the adoption and two abstentions - Australia and Canada. It was made clear during the meeting that the adoption of the paper had no legally binding effect on any member state or the Council but it will serve as another political reminder of the strong opposition to Europe's climate reduction policy on aviation emissions. There were calls during the meeting for re-engagement and accelerated action by ICAO towards a global agreement on market-based measures for emissions mitigation. However, a next move could well be the filing of an Article 84 dispute resolution procedure by one of the 26 states sponsoring the paper. Read more ...

Despite progress of US airline prohibition bill, Hedegaard confident United States will respect EU legislation on ETS | Delhi,ICAO,H.R.2594
Despite progress of US airline prohibition bill, Hedegaard confident United States will respect EU legislation on ETS
Tue 1 Nov 2011 - Just a week after the US House of Representatives passed the H.R. 2594 bill that prohibits US airlines from participating in the Aviation EU ETS, the EU's Commissioner for Climate Action Connie Hedegaard said Europe was confident that the United States will in the end respect EU legislation "just as the EU respects US legislation and US lawmakers' authority in US airports". She said the bill was "unusual" and "a rather unorthodox course of action" in wanting to tell US airlines not to respect an EU law. Her comments came on the eve of discussions within the ICAO Council tomorrow of an anti-EU ETS paper submitted by 26 nations that urges Europe to exclude flights by non-EU carriers that fly to its airports from the emissions scheme. Meanwhile, European NGO Transport & Environment accuses the US FAA of drafting the Delhi Declaration that led to the ICAO paper and colluding with airline lobbyists. Read more ...

EU airlines could be ETS victims over definition of 'equivalence' as non-EU states seek exemption from scheme
EU airlines could be ETS victims over definition of 'equivalence' as non-EU states seek exemption from scheme
Wed 2 Nov 2011 - The initial Opinion delivered by Advocate General Kokott to the European Court of Justice in October states that the EU emissions trading legislation does not infringe the sovereignty of other states and confirms that the EU ETS is compatible with relevant international agreements. However, with a growing number of states challenging the scheme, including some within the EU itself, it seems likely that the Advocate General's Opinion is likely to increase legal wrangling rather than resolve the issue, writes Mike Ambrose of the European Regions Airline Association. The EU ETS directive provides for exemption on incoming flights from the scheme for non-EU states that implement "equivalent measures" of their own to reduce aviation emissions, but there is no definition on equivalence and this could have unintended consequences for EU carriers. Read more ...

US lawmakers pass bill to prohibit US airlines from complying with EU law as US politicians drum up support at ICAO
US lawmakers pass bill to prohibit US airlines from complying with EU law as US politicians drum up support at ICAO
Tue 25 Oct 2011 - The US House of Representatives last night passed the H.R. 2594 bill that would prohibit US airlines from complying with the European Union's Emissions Trading Scheme (EU ETS). The bill is now likely to progress to the Senate for consideration. The vote follows a visit to Montreal on Friday by a US Congressional delegation made up of the bill's key sponsors to meet with senior officials of ICAO and representatives of ICAO member states, including the United Kingdom and the EU. Lead sponsor John Mica warned that if the EU ETS was imposed on the January 1 start date then direct travel from most US airports to Europe could be closed down. Meanwhile, the issue will be raised by the United States and 25 other states during the upcoming meeting of the ICAO Council. In London, a European Commission official said on Friday the EU had tried to find a consensus in meetings with their Washington counterparts but had received no response to a number of questions they had presented. Read more ...

ECJ Advocate General finds the inclusion of third country airlines into the EU ETS is compatible with international law | ECJ
ECJ Advocate General finds the inclusion of third country airlines into the EU ETS is compatible with international law
Thu 6 Oct 2010 - In a 65-page opinion published today, the European Court of Justice's (ECJ) Advocate General, Juliane Kokott, has concluded the inclusion of international aviation into the EU Emissions Trading Scheme (EU ETS) does not infringe the sovereignty of other states under international law and is compatible with relevant international agreements. The Advocate General also finds that as a market-based measure, the application of the EU ETS does not constitute a tax or charge on airlines. Although this is not binding on the judges hearing the case, the opinion's emphatic dismissal of the arguments made by the Air Transport Association of America and leading US airlines is a significant victory for the EU. However, the opinion is unlikely to reduce mounting international opposition from major states to the EU ETS. The ECJ ruling is expected around the turn of the year and will then be sent back to the High Court in London. Read more ...

Europe misguided over EU ETS, says IATA chief, as airline industry queues up to give the scheme a kicking | Greener Skies
Europe misguided over EU ETS, says IATA chief, as airline industry queues up to give the scheme a kicking
Wed 5 Oct 2011 - "The challenges facing aviation over climate change issues are critical for the industry," said Cathay Pacific Airways COO Ivan Chu in his welcome address to the Greener Skies conference in Hong Kong last week. The event was sharply defined by attacks from airline industry representatives on Europe's own flagship policy solution to the problem, the EU Emissions Trading Scheme (EU ETS). Making his first speech on environmental issues since taking over as IATA's Director General and CEO, ex-Cathay boss Tony Tyler said Europe was misguided in its determination to include international aviation in its scheme and was distracting governments from achieving a global system under ICAO leadership. Ahead of the European Court of Justice legal opinion to be delivered tomorrow (Oct 6), Nancy Young of the US ATA and Mary Veronica Tovšak Pleterski of the European Commission squared up over the rights and wrongs of including non-EU airlines into the regional trading scheme.  Read more ...

BRICS, United States and others join in Delhi declaration to oppose EU's imposition of ETS on their airlines
BRICS, United States and others join in Delhi declaration to oppose EU's imposition of ETS on their airlines
Mon 3 Oct 2011 - Twenty-six countries representing both the developed and developing world convened in New Delhi on Thursday and Friday (Sept 29-30) to discuss moves on how to oppose the "unilateral" inclusion of their aircraft operators into the EU's Emissions Trading Scheme, which starts in less than three month's time. Amongst the 70 delegates were representatives from the major emerging economies of Brazil, Russia, India, China and South Africa, as well developed countries such as Canada, Japan and the United States. A concluding statement said the inclusion of non-EU states into the scheme was inconsistent with applicable international law and the states would present their opposition in a working paper to the ICAO Council for consideration. At a briefing to the ICAO Council on Thursday, a European Commission official said the EU ETS was fully in compliance with both ICAO and UNFCCC principles. Read more ...

EC sets benchmarks for EU ETS free emission allowances but Hedegaard upsets airlines over investment remarks
EC sets benchmarks for EU ETS free emission allowances but Hedegaard upsets airlines over investment remarks
Fri 30 Sept 2011 - The long-awaited publication by the European Commission of the benchmark values from which aircraft operators joining the EU ETS can calculate their free emission allowances has been overshadowed by European airline industry anger over comments by Climate Action Commissioner Connie Hedegaard. She said that the free allowances, potentially worth €20 billion ($27bn) over the 2012-2020 period, would allow airlines to invest in new aircraft, improve fuel efficiency and use alternative fuels. Three airline associations condemned the remarks as grossly misleading and a blatant misunderstanding of economic reality. From an original list of over 4,000 potential operators identified by the Commission, around 900 operators have been allocated free allowances. The UK has today published a list of the 249 operators it has been assigned and their allowances. British Airways, Emirates, easyJet, Virgin Atlantic, American and United are the biggest 'beneficiaries'. Read more ...

China and Russia join forces to oppose EU ETS, threatening taxes or charges on EU airlines in retaliation | China,Russia,CATA
China and Russia join forces to oppose EU ETS, threatening taxes or charges on EU airlines in retaliation
Thu 29 Sept 2011 - Russia and China have agreed to work together in opposing the inclusion of their airlines into the EU Emissions Trading Scheme (EU ETS). The two powers issued a joint statement on Tuesday saying the inclusion breached the Chicago Convention and the sovereignty of other states, and undermined "booming" international cooperation on addressing climate change. They say they will each develop their own response and "reciprocal measures" if the EU does not change its position. A Chinese government official said this could include imposing punitive taxes or charges on EU carriers serving the country. Speaking at the Greener Skies conference in Hong Kong on Tuesday, the Director General of the China Air Transport Association (CATA), Wei Zhen Zhong, said the "illegal" EU policy risked triggering a trade confrontation. Read more ...

International opposition risks EU ETS success and European airline competitiveness, says AEA and Virgin chief | Steve Ridgway
International opposition risks EU ETS success and European airline competitiveness, says AEA and Virgin chief
Mon 19 Sept 2011 - Legal challenges, threatened trade wars and other implementation difficulties are risking the success of aviation's inclusion in the EU ETS, claimed Steve Ridgway, Virgin Atlantic CEO and Chairman of the Association of European Airlines (AEA), at a European Aviation Club speech in Brussels. He said Virgin had lobbied consistently for an environmentally effective and economically efficient EU ETS but airline concerns over the scheme must now be taken seriously by the Commission and EU states. Until 2020, he estimated the EU ETS will cost European airlines €3.1 billion ($4.2bn) annually, of which €1.1 billion ($1.5bn) will go to the treasuries of European governments. Ridgway called for an international agreement on deadlines for progress towards a global CO2 sectoral solution. Read more ...

Aviation legal experts propose an incremental approach in reaching a global sectoral agreement on emissions | Brian Havel,Gabriel Sanchez
Aviation legal experts propose an incremental approach in reaching a global sectoral agreement on emissions
Fri 16 Sept 2011 - Rather than attempting a 'big bang' solution in reaching a global aviation sectoral agreement on reducing international aviation emissions, an incremental approach involving collaboration between like-minded states is likely to offer the most feasible route. So argue two international air law experts, Brian Havel and Gabriel Sanchez, in a new paper 'Toward a Global Aviation Emissions Agreement'. The two authors advocate a multilateral, consensual, sectoralised and incremental emissions treaty, created outside the International Civil Aviation Organisation (ICAO) but compliant with ICAO benchmarks. The paper also examines in detail legal arguments to show that Europe's Emissions Trading Scheme (EU ETS) falls foul of a number of key articles forming the international civil aviation treaty, the Chicago Convention. Read more ...

European airlines nervous as international demands for Europe to exclude foreign airlines from EU ETS continue to grow | H.R.2594,ECJ
European airlines nervous as international demands for Europe to exclude foreign airlines from EU ETS continue to grow
Fri 19 Aug 2011 - Trade associations representing Europe's leading network and regional carriers have called on the European Commission to urgently address the growing international pressure, particularly from the United States, for the EU Emissions Trading Scheme (EU ETS) to drop the inclusion of airlines from outside Europe. The Association of European Airlines (AEA) said that with just five months before the start there was now considerable uncertainty on the scheme's future. In the face of a threatened international withdrawal, the European Regions Airline Association (ERA) said the scheme must apply to all airlines, regardless of origin, or none. Following the introduction of the proposed legislative Bill in the US House of Representatives forbidding US airlines to participate, a hearing of the House Aviation Subcommittee took place on July 27. China and Russia are also understood to be discussing countermeasures of their own. Read more ...

US politicians introduce bill to prohibit airlines from joining EU ETS while EU MEPs urge Commission to stand firm | ECJ
US politicians introduce bill to prohibit airlines from joining EU ETS while EU MEPs urge Commission to stand firm
Thu 21 July 2011 - The simmering tension between the United States and Europe over the Aviation EU ETS is growing, with politicians on both sides of the Atlantic joining in the dispute. A bill was introduced yesterday in the US House of Representatives that directs the Department of Transportation to prohibit US carriers from participating in the EU's Emissions Trading Scheme. The bipartisan bill, called the European Union Emissions Trading Scheme Prohibition Act of 2011, says recent US objections to the EU have not received a satisfactory response and calls on the DoT, the FAA and other appropriate US government officials to conduct further negotiations and take actions to ensure civil aircraft operators are "held harmless" from the "unilateral" scheme. Meanwhile, EU Members of Parliament have called on the European Commission not to give in to pressure from the US, China and Russia for their airlines to be exempted. Read more ...

Sovereignty the key issue as Europe, US airlines and environmental groups argue their EU ETS cases before the ECJ | ECJ
Sovereignty the key issue as Europe, US airlines and environmental groups argue their EU ETS cases before the ECJ
Wed 6 July 2011 - The action brought by the Air Transport Association of America (ATA) over what it sees as the illegal inclusion of its airline members into the European Union's Emissions Trading Scheme finally reached the Grand Chamber of the European Court of Justice (ECJ) in Luxembourg yesterday. The airlines argue that by applying the trading scheme to non-EU airlines, the EU is violating customary international law and infringes several provisions of the Chicago Convention, the treaty that binds international civil aviation. They contend that the scheme is imposing forbidden levies and attempting to regulate the conduct of airlines in countries outside the EU and over the high seas. Defending the EU scheme at the one-day hearing included legal representatives from European institutions, six EU member plus Norway and a coalition of US and European environmental NGOs. A preliminary opinion on the case is expected on October 6. Read more ...

US government formally declares its opposition to inclusion of its airlines into EU ETS and seeks exemption | EDF,NRDC,China
US government formally declares its opposition to inclusion of its airlines into EU ETS and seeks exemption
Thu 23 June 2011 - At an EU-US aviation bilateral meeting held yesterday in Oslo, US administration officials for the first time publicly expressed objections to the inclusion of US airlines into the EU Emissions Trading Scheme (EU ETS). The move comes just weeks before the European Court of Justice starts hearing submissions in the case brought by three major US airlines and their industry body, the Air Transport Association (ATA), against the enforced measure. It also closely follows mounting pressure from China and its airlines for a similar opt-out from Europe's flagship carbon emissions reduction policy measure. Despite the Obama administration's commitment on dealing with climate change and initial support for a home-grown cap-and-trade system that would have encompassed aviation emissions, the move will come as no surprise. The ATA has beefed up its political lobbying efforts and recently added an Obama insider to its staff. The EU says it remains resolute in upholding the ETS directive. (updated June 27Read more ...

European airline association hits back at media misconceptions of its EU ETS stand following Commission letter | AEA,Association of European Airlines
European airline association hits back at media misconceptions of its EU ETS stand following Commission letter
Sun 19 June 2011 - Following its joint letter with Airbus to the European Commission over the EU ETS, the Association of European Airlines has attempted to dispel 'myths' and misconceptions concerning its approach to the under fire scheme. The AEA denies it has called for airlines to be excluded from the EU ETS following legal challenges and "foreign indignation" but maintains the scheme "is unilateral, unnecessarily burdensome and could jeopardise a global approach." The association, which represents 36 European scheduled carriers, says it wants to work with the Commission to avoid a potential trade conflict that could damage Europe's airlinks, with knock-on consequences for imports, exports and mobility. While fully backing a global emissions trading scheme, it contends the entire global aviation community was behind mid- and long-term emissions reduction objectives. Read more ...

Aviation chiefs step up their attacks on the EU ETS as Europe’s climate commissioner stands firm on airline inclusion
Aviation chiefs step up their attacks on the EU ETS as Europe’s climate commissioner stands firm on airline inclusion
Wed 8 June 2011 - Threats from China of retaliatory action over the inclusion of their airlines into the EU Emissions Trading Scheme (EU ETS) has resulted in European airlines joining their overseas competitors in demanding changes to the cap-and-trade system. Speaking at the IATA annual general meeting that took place this week in Singapore, International Airlines Group CEO Willie Walsh said it was clear that there were countries that would retaliate, whether in the form of imposing additional taxes on European airlines or restricting access to markets. He called for a 'Plan B' in which the scheme was restricted to intra-European traffic until a global system could be realised. The chiefs of European aircraft manufacturer Airbus and Virgin Atlantic have written a joint letter to EU Climate Action Commissioner Connie Hedegaard expressing concern over the issue. However, Hedegaard says Europe must remain firm on the threats. Read more ...

China gets tough over EU ETS inclusion: its airlines to take legal action and threatens other countermeasures | China,Air China,China Eastern,China Southern,Hainan
China gets tough over EU ETS inclusion: its airlines to take legal action and threatens other countermeasures
Mon 23 May 2011 – A Chinese government official has told GreenAir Online that Chinese airlines due join the EU Emissions Trading Scheme (EU ETS) are preparing to make a legal challenge against their inclusion, which will be backed by the China Air Transport Association (CATA). The official said other "countermeasures" are being considered by the government itself, including not buying Airbus aircraft, as a means of putting pressure on the EU. He said recent talks in Brussels with European Commission officials, during which exemption had been requested, had not resulted in a satisfactory outcome. According to a Reuters report, the issue is being taken seriously in European diplomatic circles and major European states with vested interests in Airbus are seeking a compromise. Meanwhile, a similar legal challenge by US airlines is due to be heard on July 5 in the European Court of Justice, although a ruling is not expected before the start of the EU ETS next January. Read more ...

EU finance ministers call for a global carbon market for aviation and shipping to help raise climate financing | UNFCCC,Cancun,Green Climate Fund
EU finance ministers call for a global carbon market for aviation and shipping to help raise climate financing
Thu 19 May 2011 - EU finance ministers have called for a global carbon market for international aviation and maritime that would contribute finance towards a UN fund to help developing countries deal with climate change. In an ECOFIN statement, the ministers said carbon pricing is not only a potential source of revenues but would also generate the price signal necessary to efficiently achieve emissions reductions from the two sectors. They ask the International Civil Aviation Organisation (ICAO) and the International Maritime Agency (IMO), both UN bodies, to develop "without delay" a global policy framework that avoids competitive distortions or carbon leakage. The statement had the unusual outcome of being welcomed by representatives from both the aviation industry and environmentalists. A UN advisory group has identified aviation and shipping as a source for generating up to a potential $24 billion worldwide per year towards the $100 billion by 2020 target. Read more ...

Amid greenwashing claims, US environmental groups tell their major airlines to drop opposition to EU ETS | Environmental Defense Fund
Amid greenwashing claims, US environmental groups tell their major airlines to drop opposition to EU ETS
Mon 16 May 2011 - Major American environmental groups have sharply criticised leading US airlines over lobbying and legal efforts to prevent their inclusion in Europe's Emissions Trading Scheme (EU ETS) from next year while "simultaneously bragging" about their environmental performance. Leaders of the six groups - the Environmental Defense Fund, Center for Biological Diversity, Earthjustice, Environment America, Natural Resources Defense Council and Sierra Club - have written to the CEOs of American Airlines and United Airlines (which has recently merged with Continental Airlines) to denounce the airlines for bringing the suit at the European Court of Justice. A ruling on the court's decision is not expected until early next year at the earliest but US criticism over the Aviation EU ETS continues elsewhere. Read more ...

OPIS launches ‘clean’ jet fuel and carbon assessments to simplify EU ETS compliance for airlines and fuel suppliers | OPIS,WFS
OPIS launches ‘clean’ jet fuel and carbon assessments to simplify EU ETS compliance for airlines and fuel suppliers
Mon 9 May 2011 – Oil Price Information Service (OPIS), which publishes pricing and news updates on petroleum, launches this week what it describes as a 'Clean Jet Assessment' into its daily Europe Jet Fuel & Gasoil Report. OPIS says it is providing the first integrated carbon and jet fuel price mechanism for airlines joining the EU Emissions Trading System (EU ETS). As well as clean jet prices in Rotterdam and Northwest Europe, OPIS is publishing daily Emissions Allowance price levels and forward market projections for jet fuel with carbon included at the end of the year, and in 2012. The move comes as global jet fuel logistics company World Fuel Services launches a service for small to medium sized airlines and operators which bundle together physical jet fuel supply together with the appropriate number of carbon allowances they will require under the EU ETS. Read more ...

China sets new aviation energy intensity reduction target as its officials prepare for talks in Brussels over EU ETS | China
China sets new aviation energy intensity reduction target as its officials prepare for talks in Brussels over EU ETS
Thu 5 May 2011 - China's Civil Aviation Authority (CAAC) has issued guidance to airlines urging them to speed up energy efficiency and emissions reduction measures on domestic and international operations. It is aiming to reduce carbon intensity by 22 per cent by the end of 2020 from 2005 levels. The CAAC says the country's aviation industry should focus on fuel-saving technology and other new technologies such as alternative fuels, as well as promote greater awareness of the importance of energy savings and emissions reductions. It also calls on Air Traffic Control departments to optimise available airspace to shorten flight distances through better coordination with the military and implementing new air navigation procedures. Although any connection with the target is denied, Chinese officials are due shortly in Brussels for talks with the EU on the inclusion of China's airlines into the EU Emissions Trading System. Read more ...

Unresolved Aviation EU ETS problems could lead to an environmental policy fiasco, warns Lufthansa | Lufthansa
Unresolved Aviation EU ETS problems could lead to an environmental policy fiasco, warns Lufthansa
Thu 14 Apr 2011 - Implementation of the directive to include aviation in the EU Emissions Trading Scheme is increasingly running into problems, says Lufthansa in its latest 'Policy Brief'. The German airline group states the directive is being interpreted inconsistently, there is a distortion in the allocation of free emissions allowances and it is unclear how reluctant third states and airlines can be brought on board. With missed deadlines and numerous legal and technical issues still unresolved just eight months before "kick-off", the briefing believes the aviation industry is still in the dark on major parameters. Lufthansa's fleet emits the highest annual tonnage of CO2 covered by the EU ETS of any airline, according to data from RDC Aviation, and has also been the scheme's most vociferous critic. Read more ...

Chinese airlines urge their government to take retaliatory action if the EU does not exclude them from ETS | China
Chinese airlines urge their government to take retaliatory action if the EU does not exclude them from ETS
Tue 22 Mar 2011 - According to a report in today's Shanghai Daily, the China Air Transport Association (CATA) has written to the European Union on behalf of four leading Chinese airlines to protest at their inclusion in the EU Emissions Trading Scheme (EU ETS) from 2012. Unlike their US counterparts, who are taking legal action against the UK government over the issue, the Chinese carriers are merely expressing their opposition at this stage. However, the CATA will urge their government to take "corresponding measures" to safeguard their international rights if the EU fails to relent. The Chinese government has consistently resisted moves to implement market-based measures to control the growth of international aviation emissions, arguing that the restriction conflicts with the Kyoto climate change principle of Common But Differentiated Responsibilities (CBDR). Read more ...

EU ETS allowance shortfall will cost airlines up to 1.4 billion euros next year, say carbon market analysts | RDC Aviation,Point Carbon
EU ETS allowance shortfall will cost airlines up to 1.4 billion euros next year, say carbon market analysts
Tue 8 Mar 2011 - With the release yesterday by the European Commission of the baseline figure to be used for capping aviation emissions under the EU Emissions Trading Scheme, an analysis by Thomson Reuters Point Carbon and RDC Aviation shows airlines will face a shortfall of allowances that is likely to cost them around 1.4 billion euros ($1.95bn) when the scheme starts in 2012. This shortfall is likely to rise to 7 billion euros ($9.7bn) by 2020. The top 10 airlines, which also includes US carrier Delta, are likely to make up 23 per cent of the overall industry shortfall. The analysts suggest that if airlines make full use of their 2012 quota to import cheaper Kyoto offsets, they could save 575 million euros. RDC expects airlines to pass on at least some of their EU ETS costs. Read more ...

Airline winners and losers as future EU ETS carbon costs and emission levels climb, says Standard & Poor's | Standard & Poor's
Airline winners and losers as future EU ETS carbon costs and emission levels climb, says Standard & Poor's
Mon 7 Mar 2011 - Although initially marginal compared to existing charges such as escalating fuel expenses, the EU Emissions Trading Scheme (EU ETS) will add further long term cost pressure to a cyclical, capital-intensive and highly competitive airline industry, concludes a report just published by Standard & Poor's. The financial services and credit ratings agency says the EU ETS is unlikely to have a significant impact on rated European airlines such as British Airways, Lufthansa and SAS in the short term. Over a longer timeframe, however, an airline's ability to pass on the additional carbon cost will be a key differentiator, one that is likely to vary from operator to operator, and could impact a carrier's credit quality. Those operating long-haul routes with more fuel efficient aircraft and earning a higher proportion of premium revenues are likely to be less impacted.  Read more ...

European Commission publishes historical aviation emissions figure on which EU ETS allocations are to be based | EU ETS
European Commission publishes historical aviation emissions figure on which EU ETS allocations are to be based
Mon 7 Mar 2011 - After delays in order to further refine the data, the European Commission has finally decided on the aviation emissions base that will be used in calculating the number of aviation allowances to be made available to eligible aircraft operators under the Aviation EU Emissions Trading Scheme (EU ETS), which starts next January. The decision on historical aviation emissions, as the EC terms the baseline, of 219,476,343 tonnes of CO2 represents the average of the estimated annual emissions for the years 2004, 2005 and 2006 of all flights that would have been covered by the EU ETS. The Commission said it would publish its benchmark decision on how many free allowances operators will receive by the end of this coming September, along with formal details of the emissions cap and the percentages of allowances to be auctioned, given for free and allocated to the special reserve. It also dismissed reviewing the impact of the Icelandic volcano on the free share allocation process. Read more ...

Report criticises the UK over its refusal to earmark EU ETS carbon revenues for financing green projects | Carbon Retirement
Report criticises the UK over its refusal to earmark EU ETS carbon revenues for financing green projects
Fri 25 Feb 2011 - According to a report by carbon offsetting company Carbon Retirement, the United Kingdom has earned more than one billion euros ($1.35bn) from the auction of EU ETS allowances since its first auction in November 2008. Revenues raised through allowance auctioning is set to rise dramatically in Phase III and the UK could make a further 64 billion euros by 2020, with aviation joining the scheme in 2012 and additional greenhouse gases and manufacturing processes being covered from 2013. Despite European Commission proposals that at least half of auction revenues should be used to help reduce greenhouse gases, develop renewable energies and clean technologies, and shift to low-emission forms of transport, the UK has refused to hypothecate revenues. An attempt by the European Parliament to force EU member states to comply when passing the Aviation EU ETS directive was rejected by EU Council ministers. Read more ...

European airline chiefs reaffirm support for EU ETS but say obstacles could hinder effective implementation | AEA,Association of European Airlines,Steve Ridgway
European airline chiefs reaffirm support for EU ETS but say obstacles could hinder effective implementation
Mon 21 Feb 2011 - At a board meeting of the Association of European Airlines (AEA) held last week, airline chiefs representing 36 established scheduled network carriers voiced their continuing support for the EU Emissions Trading Scheme (EU ETS). However, they said obstacles to the effective inclusion of aviation into the scheme are likely to become increasingly apparent in the lead up to its start on 1 January 2012. They have outlined around a dozen technical, legal and MRV issues that will need resolving over the next 10 months. The airline CEOs have again repeated demands for auction revenues be used by States to fund clean technology investment towards achieving a Single European Sky and particularly in developing alternative sustainable fuels. Read more ...

Airline CO2 emissions covered by the EU ETS increase 2.6 per cent in 2010 as they resume upward trend | RDC Aviation
Airline CO2 emissions covered by the EU ETS increase 2.6 per cent in 2010 as they resume upward trend
Thu 27 Jan 2011 - According to data just published by consultants RDC Aviation, the total CO2 emissions of scheduled airlines flying to, from and within Europe rose by 2.66 per cent in 2010. This follows a fall of 3.86 per cent in 2009 compared to 2008, so overall emissions have not yet returned to pre-recession levels. Although final air traffic figures for last year have yet to be published, the increase in emissions follows an estimate by the Association of European Airlines that its members carried 10 million more passengers in 2010 than in 2009 and recorded a 2.5 per cent increase in revenue passenger-kilometres (RPKs). Lufthansa pipped British Airways to the post as the airline with the highest European CO2 emissions, followed by Air France and KLM, although all four were down on their 2008 outputs. Read more ...

ETS Aviation partners with United Aviation Services to offer Aviation EU ETS carbon accountancy solution | ETS Aviation,United Aviation Services
ETS Aviation partners with United Aviation Services to offer Aviation EU ETS carbon accountancy solution
Mon 29 Nov 2010 - Software and carbon accountancy firm ETS Aviation is to partner with United Aviation Services, a multi-national provider of trip planning and flight support services, to offer clients a new EU Emissions Trading Scheme (EU ETS) service called ETS LINKED. Designed specifically for the aviation industry, the service aims to streamline the recording, reporting and verification of flight data as well as help maximize carbon credit allocation for flight operators of all sizes. The two partners say errors and inconsistencies in data reporting can lead not only to substantial fines but more importantly the loss of free carbon certificates allocated under the EU ETS, and their system can help lighten the compliance burden, particularly for smaller operators. Read more ...

Aviation EU ETS deadline concentrates minds as aircraft operators and verifiers gear up for critical first reports | Verification,CICS,SGS,VerifAvia,ETSVerification,LRQA,PwC,TUV NORD,Airpas
Aviation EU ETS deadline concentrates minds as aircraft operators and verifiers gear up for critical first reports
Fri 26 Nov 2010 - With just four months left before the 31 March 2011 deadline for aircraft operators entering Europe's Emissions Trading Scheme (EU ETS) to submit verified reports, the signs are that although most of the larger airlines are well-placed many smaller carriers remain unprepared and unsure of the requirements. Lack of clarity and commonality on certain compliance issues across the 27 EU Member States are also proving a headache for many. Operators are required to have their 2010 emissions and tonne-kilometre data audited by accredited verifiers before submission to their relevant Competent Authority and verifiers are gearing up for a busy period from the start of the New Year. A failure to comply with the deadline could see operators losing entitlement to valuable free emissions allowances. Read more ...

European Commission takes seven EU Member States to task for not passing Aviation EU ETS legislation
European Commission takes seven EU Member States to task for not passing Aviation EU ETS legislation
Fri 26 Nov 2010 - The European Commission has asked seven EU Member States - Cyprus, Estonia, France, Greece, Hungary, Poland and Slovakia - to speed up the adoption of legislative and administrative measures to transpose the Aviation EU ETS directive into national law. Under the directive (2008/101/EC), Member States were required to transpose the directive before 2 February 2010. Following the recommendation of Climate Commissioner Connie Hedegaard, the Commission has sent 'reasoned opinion', the last step of an infringement procedure, to the seven States concerned, with the implied threat that continued non-compliance could be referred to the European Court of Justice. Read more ...

Qatar Airways CEO calls on airline industry to collaborate and fight off the introduction of the Aviation EU ETS | Qatar Airways,ICAO Assembly
Qatar Airways CEO calls on airline industry to collaborate and fight off the introduction of the Aviation EU ETS
Wed 10 Nov 2010 - Akbar Al Baker, CEO of fast-growing Middle East airline Qatar Airways, has called on IATA and ICAO to challenge regulations that will bring operators flying to and from Europe into the Aviation EU Emissions Trading Scheme from 2012. Speaking at the Doha Aviation Summit in Qatar, he said the two bodies should work collectively in the interests of airlines "to fight off the introduction of unnecessary charges that will eventually have to be passed onto consumers." He said the charges were merely designed to fund government coffers and would not necessarily find their way back into the industry. Al Baker was echoing similar discontent over the EU ETS expressed by senior airline executives at the recent Arab Air Carriers Organization's AGM in Cairo. Read more ...

Austria follows the lead of Germany with new environmental tax on departing passengers | AEA,IACA
Austria follows the lead of Germany with new environmental tax on departing passengers
Thu 28 Oct 2010 - Following on the heels of Germany, Austria is the latest to announce that it too would introduce an ecological tax to be paid by all airline passengers departing from the country’s airports. Passengers will be charged 8 euros ($11) for intra-European flights and 40 euros ($55) for long-haul flights. The tax is expected to raise between 40 and 60 million euros in 2011. Airline representatives have accused the Austrian government of following other EU states like Germany and the UK in using the environment as a thinly-disguised revenue earner. Speaking at the recent President's Assembly of the Association of European Airlines (AEA), British Airways CEO and AEA Chairman for 2010 Willie Walsh said Europe's airlines would not be able to compete abroad if weighed down by taxes and charges at home. Read more ...

North America turns up heat on Aviation EU ETS by urging ICAO to pass "mutual consent" resolution | Aviation EU ETS
North America turns up heat on Aviation EU ETS by urging ICAO to pass "mutual consent" resolution
Mon 13 Sept 2010 - According to the New York Times, the United States, Canada and Mexico have urged the International Civil Aviation Organization (ICAO) to pass a resolution stating that countries "seeking to implement an emissions trading system that applies to other contracting states' aircraft operators" do so only "on the basis of mutual agreement". If agreed upon, the resolution would be non-binding, says the paper, but would add to international pressure on Europe to at least delay the start of its system in January 2012. This is the first public intervention by the Obama administration on the Aviation EU ETS, which applies to all operators, regardless of nationality, flying to, from or within EU states. A number of leading US airlines, backed by the Air Transport Association (ATA), have already made a legal challenge to their inclusion in the scheme. Read more ...

Aircraft operators and verifiers gear up for the first all-important Aviation EU ETS audit period | SGS,BSI,ETSverification,CICS,VerifAvia,UK Environment Agency,DEHSt,UKAS,DAkkS,DGAC,Cofrac,European co-operation for Accreditation
Aircraft operators and verifiers gear up for the first all-important Aviation EU ETS audit period
Mon 13 Sept 2010 - The first annual emissions and tonne-kilometre data reports are due to be submitted within the next six months by aircraft operators included in the Aviation EU Emissions Trading Scheme (ETS). Before the reports can be submitted they must first be audited by an independent and approved verification body. The pressure is now on operators not only to find and appoint a verifier in time but also ensure the reports meet the stringent requirements of the Competent Authorities in the EU states administering the scheme. However, the process and regulation of appointing verifiers specifically for the Aviation EU ETS is far from uniform across Europe and has the potential to lead to a situation of too few approved verifiers handling the audits of too many of the 4,000-odd operators in a short space of time. Read more ...

In a critical year for the Aviation EU ETS, European emissions fall in first half of 2010 compared to 2009 | RDC Aviation,Green Aviation International
In a critical year for the Aviation EU ETS, European emissions fall in first half of 2010 compared to 2009
Thu 12 Aug 2010 - Overall carbon emissions within the scope of the Aviation EU ETS fell by 1.8 percent in the first half of 2010 compared to the same period in 2009, according to data compiled by consultancy RDC Aviation. Total aviation CO2 emissions across 27 EU states amounted to nearly 113 million tonnes in the first half of 2010 compared with 115 million tonnes last year. The impact of the volcanic ash cloud that severely affected air traffic in northern Europe in April is not easy to measure although the UK and France experienced falls of around 4 percent in emissions over the period, whilst Germany and the Netherlands saw smaller increases in total emissions. This is reflected in airline terms with British Airways and Air France showing decreases in emissions while Lufthansa and KLM had rises. As 2010 is the benchmarking year for calculating the allocation of free emission permits, airlines are perversely incentivized to ensure their emissions are kept high to maximize their share. Read more ...

Aircraft operators warned to make early start on Aviation EU ETS verification process or risk fines | CICS,UKAS,Environment Agency
Aircraft operators warned to make early start on Aviation EU ETS verification process or risk fines
Fri 6 Aug 2010 - Aircraft operators joining the Aviation EU Emissions Trading Scheme (EU ETS) are being urged to start the verification process of their emissions and benchmark reports covering 2010 as soon as possible. These reports have to be verified and submitted to the relevant Competent Authority by 31 March 2011. In the UK, only bodies accredited by the United Kingdom Accreditation Service (UKAS) can perform the strict verification audit. The Environment Agency for England and Wales (EA), which is responsible for nearly all aircraft operators assigned to the UK, has yet to publish a promised list of Aviation EU ETS accredited verifiers. However, last week, CICS, a company that already performs EU ETS verifications of fixed installation operators, announced it was one of the first to be "recommended to receive" accreditation by UKAS. Read more ...

UK Environment Agency awards IT contract to manage compliance requirements of the Aviation EU ETS | Environment Agency,CDC Climat,SFW
UK Environment Agency awards IT contract to manage compliance requirements of the Aviation EU ETS
Fri 23 July 2010 – CDC Climat, a French provider of carbon market and climate change services and solutions, and UK-based IT company SFW have been awarded a contract by the Environment Agency of England and Wales (EA) to deliver a system that will enable the agency to manage the aircraft operators it is administering under the Aviation EU Emissions Trading Scheme (EU ETS). The application is an electronic workflow and messaging system that will allow carbon emissions monitoring, permitting, reporting and benchmarking. The system is based on a common set of requirements agreed by a number of EU member states and will be the first of its kind across the EU ETS. It will initially be used by the EA for managing its aviation requirements but it is anticipated the system will be extended to other emitting sectors. Read more ...

Concerns remain as new UK government holds up change from Air Passenger Duty to aircraft-based green tax | APD,PPD,AEF,AOA,ERA,BAR UK
Concerns remain as new UK government holds up change from Air Passenger Duty to aircraft-based green tax
Fri 9 July 2010 - The new UK coalition government's backtrack on an initial commitment to change Air Passenger Duty (APD) to a greener per-plane duty (PPD) and instead initiate a consultation process has been largely welcomed by concerned aviation industry representatives but greeted with suspicion by environmentalists, who favour a switch. A number of airlines and airports remain alarmed that a PPD could have a detrimental impact on regional flights and airports. According to The Sunday Times, the proposed tax could also spark a diplomatic row with the United States, which voiced its opposition to similar plans mooted in 2008 by the previous UK government. Meanwhile, the UK's Transport Secretary has announced the setting up of a new group to consider how to make best use of existing airport capacity in the South-East since it scrapped on environmental grounds proposals for new London runways. Read more ...

Small errors in emissions data monitoring could cost Aviation EU ETS operators over one million euros | ETS Aviation,VerifAvia,Aerobytes,CICS
Small errors in emissions data monitoring could cost Aviation EU ETS operators over one million euros
Tue 6 July 2010 - Inaccuracies or errors in monitoring emissions data could lead to aircraft operators entering the EU Emissions Trading Scheme (EU ETS) paying more than they should for emissions and getting less than their entitlement in carbon credits, says ETS Aviation, a specialist in MRV software and support services. Even a small airline with a fleet of six aircraft emitting 150,000 tonnes of CO2 a year could lose up to one million euros ($1.25m) over the 2012-2020 reporting cycle for a one to two percent error in monitoring emissions data, calculates the company. Meanwhile, leading accredited EU ETS verifier CICS is warning that many operators still have much work to do to meet deadlines and has released a 'white paper' to provide a resource on verification issues. Read more ...

New Zealand airlines become the first in the world to operate under a mandatory national carbon ETS | New Zealand,NZ ETS,Air New Zealand,Jetstar,Pacific Blue
New Zealand airlines become the first in the world to operate under a mandatory national carbon ETS
Fri 2 July 2010 - The first major carbon emissions trading scheme to affect airlines started in New Zealand yesterday and is expected to add around three New Zealand cents (two US cents) to a litre of jet fuel. Unlike the European model, which starts in 2012, emissions obligations under the New Zealand Emissions Trading Scheme (NZ ETS) are accounted for 'upstream' so fuel suppliers bear the responsibility for compliance and they in turn pass the costs on to the user. However, a large fuel user, such as an airline, can voluntarily 'opt-in' to the scheme and take on the responsibilities for carbon emissions accounting. Of the three major airlines operating in the country - Air New Zealand, Jetstar and Pacific Blue - only the former has decided to shoulder the obligations and liabilities from the beginning. The scheme applies only to domestic air travel and jet fuel used on international flights is exempted. Read more ...

Lufthansa CEO calls for Aviation EU ETS to be postponed for a year because of ash cloud distortions | Mayrhuber,China,IATA AGM 2010
Lufthansa CEO calls for Aviation EU ETS to be postponed for a year because of ash cloud distortions
Thu 10 June 2010 - Speaking to journalists at the IATA AGM in Berlin this week, Lufthansa CEO Wolfgang Mayrhuber called for the postponement of the Aviation EU Emissions Trading Scheme (EU ETS), due to start in 2012, for a year because of the market distortions caused by the grounding of aircraft due to the volcanic ash cloud in April. As the main impact was felt in Northern Europe and Scandinavia, airlines in these regions would be adversely affected in the allocation of free emissions permits as 2010 is the benchmarking year for the calculation. The Association of European Airlines has reacted angrily to European Commission suggestions that the effect would be very small. Meanwhile, Chinese airlines have joined their US counterparts in attacking the inclusion of international airlines into the EU ETS. Read more ...

German air passenger departure tax linked to environmental performance draws airline protests | T&E,IACA,IATA AGM 2010,Germany,passenger tax
German air passenger departure tax linked to environmental performance draws airline protests
Wed 9 June 2010 - The German government is to introduce a departure tax on all passengers departing German airports until the introduction of airlines into the Aviation EU Emissions Trading Scheme in 2012. The tax is aimed at raising 1 billion euros ($1.2bn) annually and although details are still to be released it is expected to add around 8-16 euros per ticket. In a statement, the government said the tax would be based on factors such as the flight's noise level and fuel consumption. IATA branded the tax a "cash grab" and inappropriate at a time of economic hardship for European airlines. Lufthansa CEO Wolfgang Mayrhuber said the tax raised would exceed the total annual collective earnings of all German airlines. Read more ...

US airline EU ETS case against the UK to be referred to European court as NGO coalition joins action
US airline EU ETS case against the UK to be referred to European court as NGO coalition joins action
Fri 28 May 2010 - A judicial review held yesterday at the High Court in London agreed an application by the Air Transport Association of America (ATA) to challenge the legal validity of its airline members be included unilaterally in the EU Emissions Trading Scheme (EU ETS). The action was brought against the UK's Secretary of State for Energy and Climate Change and both sides' request for the case be referred to the European Court of Justice in Luxembourg was granted. The court also granted permission for a transatlantic coalition of environmental groups to join the action. Similar applications by the International Air Transport Association (IATA) and the National Airlines Council of Canada to intervene were also granted although as a combined brief. Read more ...

ETS Aviation's carbon footprinting software to be integrated into pilots' electronic flight bags | ETS Aviation
ETS Aviation's carbon footprinting software to be integrated into pilots' electronic flight bags
Wed 5 May 2010 - ETS Aviation, which specializes in aviation emissions Monitoring, Reporting and Verification software systems and support services, has signed an agreement with Canadian electronic flight bag company On-Board Data Systems (OBDS) that will provide pilots with a simple, on-board emissions reporting and carbon footprinting application. ETS Aviation was established in response to the introduction of the Aviation EU Emissions Trading Scheme (EU ETS) and has developed what it claims is the world's first online aviation emissions monitoring and reporting system, called Aviation Footprinter.  Read more ...

A shortage of verification bodies presents Aviation EU ETS aircraft operators with a major challenge | VerifAvia,SustainAvia
A shortage of verification bodies presents Aviation EU ETS aircraft operators with a major challenge
Fri 30 Apr 2010 - With the monitoring and collecting of data now underway, aircraft operators included in the Aviation EU Emissions Trading Scheme (EU ETS) face yet another and imminent hurdle, says Paris-based VerifAvia. The CO2 emissions and tonne-kilometre data has to be verified by an independent accredited verification body before submission to the relevant administering Competent Authority by March 31 of each year, beginning in 2011. However, according to VerifAvia CEO Julien Dufour, with over 2,000 aircraft operators worldwide included in the scheme, only a handful of declared verifiers are so far in place and the aviation industry risks a shortage in the lead-up to the deadline. Read more ...

Ash cloud's aviation CO2 silver lining has implications for airline EU ETS emissions allowances
Ash cloud's aviation CO2 silver lining has implications for airline EU ETS emissions allowances
Mon 26 Apr 2010 - Whilst the Iceland volcano ash cloud has cost the airlines $1.7 billion, according to IATA, around 1.67 million tonnes of CO2 emissions were saved by the grounding of scheduled flights within Europe, estimates consultants RDC Aviation. Figures from Eurocontrol show that between Thursday 15 April to the following Thursday, 22 April, 114,671 flights operated within European airspace compared to 188,514 in the previous week, with the agency estimating a higher overall saving of 2.5 million tonnes of CO2 emissions. However, the loss of the emissions will not be entirely welcomed by a number of airlines as 2010 is the benchmarking year for aircraft operators entering the Aviation EU Emissions Trading Scheme and airlines most affected by the ash cloud groundings could lose out in their allocation of free emissions allowances. Read more ...

British Airways calls for carbon revenues to be used to help scale up the development of aviation biofuels | British Airways,SAS,SAFUG
British Airways calls for carbon revenues to be used to help scale up the development of aviation biofuels
Thu 25 Mar 2010 - Carbon pricing is critical to the business case for aviation biofuels as airlines join schemes such as the EU Emissions Trading Scheme (EU ETS said British Airways' Head of Environment Jonathon Counsell at last week's World Biofuels Markets. He said the recently announced plans to build a waste biomass to jet fuel plant in London had been driven by an economic imperative based around the price of carbon and local environmental landfill taxes. Sourcing capital from airlines to help develop aviation biofuel projects was not an option, but he believed governments who earned revenues from the auctioning of carbon emission permits from airlines should use some of the money to fund low-carbon aviation technologies such as biofuels. Read more ...

IATA enters legal case brought by ATA and three US airlines against the UK over the Aviation EU ETS | ATA EU ETS,VerifAvia
IATA enters legal case brought by ATA and three US airlines against the UK over the Aviation EU ETS
Mon 1 Mar 2010 - The International Air Transport Association (IATA) has filed an amicus brief in London ahead of the hearing expected this month into the case brought by the Air Transport Association of America (ATA) and three major US airlines - American, Continental and United - over the aviation EU Emissions Trading Scheme (EU ETS). An amicus brief is a document which is filed by someone, such as an advocacy group, who is not directly related to the case under consideration but is intended to be useful for evaluation by the judge. IATA says it wishes to express to the court its own deep concerns of the scheme. Meanwhile, the UK Government's consultation over transposing the second and final phase of the EU directive into law ends this coming Friday, March 5. Read more ...

Biofuels are essential to reducing EU ETS carbon costs and meeting carbon-neutral growth goals, says report | EQ2
Biofuels are essential to reducing EU ETS carbon costs and meeting carbon-neutral growth goals, says report
Tue 16 Feb 2010 - Although not commercially viable yet, the EU Emissions Trading Scheme (EU ETS) offers a strong financial, as well as environmental, incentive for the adoption of jet biofuels, says a new report by EQ2. Based on industry assumptions of 15 percent and 30 percent consumption of biofuels in 2020 and 2030 respectively, they could contribute to potential savings for airlines involved in the EU ETS of $2.01 billion in 2020 and $5.84 billion in 2030 on the purchase of carbon credits. Based on the current EU ETS carbon price for 2012 of 15 euros and the 2009 average jet fuel price of $1.69 per gallon, every gallon of jet fuel burned would incur carbon costs of an additional $0.21, equivalent to a premium of 12.4 percent. Read more ...

Additional carbon taxes may need to be introduced to constrain air travel demand, says UK's climate advisor | David Kennedy,Committee on Climate Change
Additional carbon taxes may need to be introduced to constrain air travel demand, says UK's climate advisor
Mon 15 Feb 2010 – David Kennedy, CEO of the UK's Committee on Climate Change (CCC), has said biofuels and fuel efficiency improvements could allow a 60 percent increase in UK passengers up to 2050 but demand would most likely reach around 115 percent without further measures such as a carbon tax and restrictions on airport expansion and slots. The Government's climate advisor forecasted biofuels would only contribute 10 percent towards an anticipated overall 35 percent industry fuel intensity improvement by 2050 and said biofuels should not be regarded as a 'silver bullet'. UK policy is for aviation carbon emissions to be no more in 2050 than they were in 2005 - around 37 million tonnes. Read more ...

UK Government to refer US airline legal challenge over the EU ETS to the European Court of Justice | EU ETS,United Airlines,Continental Airlines,American Airlines,ATA,DECC
UK Government to refer US airline legal challenge over the EU ETS to the European Court of Justice
Tue 26 Jan 2010 - According to Business Green, the UK Government is to refer the legal action instigated against it last month over the EU Emissions Trading Scheme (EU ETS) by three US airlines - American, Continental and United - to the European Court of Justice on the grounds that this is likely to offer the swiftest resolution of the issue. A spokeswoman for the Department of Energy and Climate Change told the online publication that the Government firmly refuted the case brought against it and would make a robust defence of the European legislation in the court. The airlines, backed by the Air Transport Association of North America (ATA), argue that their inclusion in the EU ETS contravenes articles in the Chicago Convention, the treaty that binds international civil aviation. Read more ...