Airlines should join emissions trade scheme - EU
Tue Sep 27, 2005 7:59 PM
By Jeff Mason

BRUSSELS (Reuters) - Aircraft taking off from airports in the European Union should join the bloc's emissions trading scheme to cut greenhouse gases that damage the environment, the EU executive Commission proposed on Tuesday.

The European Commission said emissions trading was more environmentally beneficial or cost effective than imposing taxes or charges -- two other options the EU executive had considered in order to enlist airlines in the fight against climate change.

"The boom in flying is bringing with it a rapid rise in greenhouse gas emissions," said Environment Commissioner Stavros Dimas in a statement.

"Extending emissions trading to the aviation sector will limit these emissions and ensure that aviation, like all other sectors, contribute to reducing the harmful greenhouse gases. Through emission trading, airlines will be able to do so at the least possible costs."

The EU scheme puts a limit on the amount of carbon dioxide, the main gas blamed for global warming, that big polluters like power plants can emit. Companies -- in this case airlines -- can buy more rights to pollute if they overshoot their targets, or sell them if they come in below the cap.

The Commission's position, which will be tailored into a formal proposal, envisions the scheme covering emissions from both EU and non-EU carriers that take off from a country within the 25-nation bloc to another EU nation or elsewhere abroad.

"EU and non-EU carriers would be treated equally," it said.

The Commission said it wanted to strengthen other measures to curb aviation emissions, including improving air traffic management and working to "remove legal obstacles to the taxation of jet fuel."

EU member states and the European Parliament will respond to the Commission's proposal before it formulates a draft law. Officials have said aviation could enter the scheme as early as 2008, depending on how long the legislative process takes.

Ticket prices may rise by up to 9 euros ($10.83) per return flight as a result of the measures, making demand for flights grow at a "slightly slower rate", the Commission said.

European airports and some major airlines -- including British Airways -- have come out in favour of an inclusion in the system as a better alternative to tax.



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