Green skies

There is no doubt that climate change is a real and imminent danger. We must take responsibility and act intelligently to ensure that we leave the planet in good shape for generations to come. While aviation is currently responsible for 1.6 per cent of global greenhouse gas emissions, we can’t be complacent and we need to keep working towards improved environmental efficiency.

Today’s aircraft are typically 70 per cent cleaner and 75 per cent quieter than their 1960s’ counterparts, and similar progress is needed over the coming 40 years. Aircraft and engine manufacturers need to invest in new technologies that reduce emissions, while airlines need to be viable businesses that can purchase and put into operation the latest technology.

EasyJet is already working with Airbus and others to ensure that technology will take a major step forward within the next ten years. Our own concept, called the ‘easyJet ecoJet’ shows how new technologies could reduce CO2 emissions by 50 per cent. This is not Star Trek, either, but technology that is currently being developed. The EU has a big part to play, not least by legislating for minimum emissions standards for planes. We should no longer tolerate the 700 old, dirty planes built before 1990 that are still flying in Europe.

The inclusion of aviation into the EU emission trading scheme is a crucial step. If we get it right, ETS will incentivise airlines and consumers to fly as efficiently as possible, using ever-cleaner aircraft. If we get it wrong, it could simply become a punitive tax on airlines and passengers, which could make it harder for aviation to achieve the EU’s environmental goals. Because airlines cannot simply add the costs of ETS to ticket prices, as demonstrated by the recent oil price increase, airlines will lack the financial means to invest in new aircraft.

It is crucial that we understand that the world has changed. When this piece of legislation was drafted, oil was at a barrel. Today it is at 5. This tripling of the price of oil poses an unprecedented challenge to all airlines, and will reduce CO2 emissions from aviation significantly. ETS needs to take account of this new reality, as Europe needs strong airlines that can afford to invest in the latest technology to reduce emissions.

Airlines had urged the European parliament to say no to auctioning before they voted on plans to include aviation in the ETS. Auctioning simply acts as an additional tax without any environmental benefit; it is the setting of the cap that drives the environmental goal, not the level of auctioning. Airlines have little or no ability to pass through the cost of ETS in the short term; just witness the adverse impact the increased oil price will have on airline profit margins. The very concept of emission trading is based on the principle that emissions should be reduced where it is most cost effective. ELFAA welcomes the parliament’s support for the inclusion of all flights in and out of Europe – a prerequisite for the environmental effectiveness of the system.

If we all work together and take intelligent decisions, we can ensure that aviation plays a positive role in tackling climate change while preserving its enormous economic and social benefits. The ETS must be seen as a trading mechanism that incentivises airlines to become greener and not a punitive tax on an industry that brings enormous social and economic benefits to the people of Europe and that is already investing billions into new technology to reduce emissions, despite the unprecedented challenge of a tripling of the price of oil. Europe needs strong airlines, as only strong airlines have the financial means to invest in new technology.