There are a number of questions that need to be answered before including Europe’s aviation sector in the EU’s emissions trading scheme, writes Holger Krahmer MEP.
Flying today is cheaper and faster than ever before.
Bringing people closer and cutting distances between far flung places, international aviation is a crucial sector to ensure global economic growth.
But flying high is not only happy news: aviation is a major transport polluter and increasingly contributes to the output of greenhouse gas emissions.
Experts estimate that emissions will triple by 2050 and that air traffic will contribute to that global increase.
Growth rates in the aviation sector are high; especially in rapidly developing Asian countries, which are likely to produce more CO2 emissions than industrialised countries by 2025.
The aviation industry’s emissions were three and a half per cent in 1990 and are likely to rise to more than five per cent of total global greenhouse gas emissions by 2050.
Although these figures seem relatively small, the overall climate impact of international aviation should not be underestimated. Airlines must therefore be committed to responsible environmental management.
There is no doubt that airlines have to cover - at least in part - the environmental costs they are producing on the basis of the polluter pays-principle.
Taxes on airline fuel are currently the subject of fierce debate.
A first step has been taken on May 14 in Luxembourg. EU finance ministers agreed on a voluntary levy on airline tickets - although not to combat climate change but to fund extra development aid.
Whether this will help poorer countries remains to be seen as tourism and the crucial airline sector are important sources of income for many developing countries.
Higher ticket prices may draw tourists elsewhere and in the end have a negative effect on many Third World destinations.
Taxes on airline fuel are not the smartest way to fund development but would they help to combat climate change?
Environmentalists and political leaders alike have asked for a kerosene tax as an environmentally effective and efficient instrument.
The idea of a kerosene tax has been supported by some member states including France and Germany among others but the EU is far from reaching a consensus.
Unilateral, isolating measures, such as prohibitive taxes or even worse, constraints on mobility, are the wrong path – from the air carriers’ point of view.
These measures would trigger serious negative effects on the economy and social welfare of the European economic area.
A number of EU studies show that the introduction of additional taxes would only have a limited impact on climate change but the economic loss would be considerable.
It is therefore necessary to search for more effective alternatives than taxes.
Environment Commissioner Stavros Dimas is in favour of including aviation into the EU’s future emissions trading schemes.
This market- oriented approach could be such an alternative, making more sense than taxes.
Although airlines are not yet included (with the notable exception of British Airways) they could well be part of the game when the scheme moves into its second phase in 2008.
The European Commission is currently studying how to include airlines in the EU’s emission trading scheme and will present a plan soon that recommends a way forward to reduce aviation’s climate change impact.
The International Civil Aviation Organisation (ICAO) is also studying various options and considering a global emissions trading system as a sound alternative.
At its annual general assembly in September 2004 ICAO recognised once again the need for the development of an open trade system for international air carriage.
There are some arguments in favour of this approach and recent studies have proven that it might be the most economically and ecologically efficient.
Additionally, to ensure fair competition it is essential for any international system of greenhouse gas allowance trading to include as many participants as possible.
Aviation is a global business, organised by internationally agreed rules and regulations.
That is why ICAO wants to establish a global system - although little progress has been made due to the internal opposition of some important members such as the USA, Canada and Russia.
In a system limited to the EU, the global environmental benefit would be only marginal.
It would have a negative impact on the competitiveness of European air carriers and its customers, to the benefit of its foreign, often less environmentally conscious competitors.
Hasty action would discourage EU progress as a pioneer in the industry, would further damage Europe’s economy and fail to motivate countries or organisations to join the emissions trading system.
There will be no sustainable strategy for Europe in the world, if we can’t find a balance that includes both the concerns of environmental safety and the necessity of ensuring economic growth.
An intrinsically coherent concept could be developed in Europe but must be implemented globally.
Air traffic as well as other means of transport have to be included, particularly, as they operate internationally, are linked to a number of industries and therefore play a pivotal role among other industrial branches.
Delays in development at an international level must not lead to one-sided regulations that constrain development and distort competition for national or European air carriers.
Last but not least it is important to acknowledge, that the aviation industry, especially in Europe, has made considerable efforts in reducing aircraft emissions.
New technology means more fuel efficient planes that will cut CO2 emissions will be built in the future.
The new Airbus A380 is a good example of what can be achieved. And it shows that Europe’s industry and airlines are committed to environmental protection.
The important role airlines play in Europe’s economy means that legislation must take into account the specific problems of the sector, as high oil prices or the after effects of September 11 to ensure the competitiveness of European carriers.
There is too much at stake, environmentally and commercially: before the implementation of an emission allowance trading system that includes aviation there are many questions to answer.
In the meantime important steps should be taken on the ground to reduce emissions - the industry should invest more in research and development, the airlines modernise their fleets and the EU should improve the airspace infrastructure and encourage technological progress that is committed to environmental protection.
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