Airlines take off to EU CO2 emissions scheme

The European Commission has given the green light to plans including Europe’s airlines in the EU’s emissions trading scheme.

European Environment Commissioner Stavros Dimas announced on Tuesday that the option had clearly won over alternative measures such as blanket ticket or fuel taxes.

“Inclusion in the emissions trading scheme was the most cost effective of the three choices,” said Dimas, announcing the decision to journalists in Strasbourg.

Dimas said aviation, which is the EU’s fastest growing transport sector, had been exempt from environmental responsibility for too long, and should contribute alongside other transport sectors, such as road and rail.

“Extending emissions trading to the aviation sector will limit these emissions and ensure that aviation, like all other sectors, contributes to reducing harmful greenhouse gases,” he said.

Under the proposals, agreed by commissioners on Tuesday, air carriers would have to purchase CO2 permits if they exceed a set yearly allowance, or introduce reduction measures.

The cost of running the emissions trading scheme for airlines could add up to €9 on to the price of a return ticket.

Dimas confirmed that the proposal will include all flights departing from the EU, including non-EU airlines.

But an earlier touted 2008 entry date for airlines in the scheme was thought to be too optimistic by Dimas.

The emissions trading scheme is set for a review in early 2006 and Dimas said he would prefer to include the airline industry in a revamped scheme.

He also wants time to listen to industry and stakeholders ahead of a detailed impact assessment report.

“It is three or four years away from inclusion, perhaps 2009 or 2010.”

Dimas said he also wanted to wait and see if the review includes introducing other greenhouse gasses into the scheme such as nitrogen oxide.

Many airlines see emissions trading as their most favourable option from a series of suggestions put forward by Brussels and member states.

Ticket taxes which may end up funding non-aviation development or environmental projects are the least favoured by the airline industry.

UK airline, British Airways who are the only airline currently participating in the ETS welcomed the proposals, saying the alternative of simply taxing the industry would not guarantee any reduction in emissions.

“The EU scheme should provide a practical and realistic way of addressing the climate change impact of CO2 emissions from aviation,” said Andrew Sentance of British Airways.

Centre-right UK MEP Caroline Jackson said the commission's plan would provide airlines with an incentive to make aircraft more fuel-efficient.

“It should also lead to new technological developments which will reduce the environmental effects of air travel,” said Jackson.

But a Liberal British MEP, Chris Davies said proposal would do “nothing to curb the headlong growth of air travel with all its damaging environmental consequences.”

"Inclusion in the emissions-trading scheme is a necessary first step but it is no substitute for tough measures such as the introduction of a Europe-wide aviation tax and the requirement for airlines to pay duty on the fuel they use,” said Davies.

"The fact that so many people within the airline industry approve of this measure suggests that they see it as little more than a PR gesture that avoids the need for more effective action."

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