Comment
ICAO needs to move quickly on ETS
December 1st 2012
There has not been a lot of it around of late, but Asia-Pacific airlines head towards 2013 with a welcome piece of good news. Read More »
Next April, when European governments were scheduled to send out bills to carriers for their emissions on flights to and from European destinations, airline accounts departments won’t be receiving any demands for settlement.
The European Commission (EC), apparently pleased with International Civil Aviation Organization (ICAO) progress on a global emissions trading scheme (ETS) for aviation, has finally seen the light. It has frozen its ETS for 12 months.
On the one hand, Europe should be congratulated for bringing this environmental issue to the fore. On the other, there was no reason why it should have been so stubborn for such a long time. In the process, it caused prolonged angst amongst its trading partners, including economic powerhouses China, the U.S., Russia, India and beyond.
Given the horrendous state of European economies one would have thought Europe would have wanted to avoid even the slightest risk of a trade war with the rest of the world.
Also, it should be recognized that this is not an elimination of the European ETS in favour of a global ETS. Europe has simply “stopped the clock” on its scheme for a year.
It is now imperative that ICAO and its 191 member states ensure there is real progress on the final shape of a global scheme by the time they meet at their Assembly in September next year.
Airlines have enough to worry about without a return to a damaging Europe versus the rest of the world dispute. Asia-Pacific carriers and their global counterparts continue to absorb persistently high fuel costs. Economic conditions in the U.S. and Europe continue to lag behind predictions of recovery.
Slowing growth in China has caused concern worldwide although the slide back from double-digit Gross Domestic Product (GDP) expansion to around 7.5% still leaves it well ahead of growth elsewhere.
In the latter part of this year passenger traffic growth has slowed and cargo volumes, critical to Asia-Pacific airlines who carry 40% of global air freight, remain in the doldrums.
These are concerns but, overall, the future of aviation in this region remains bright. Carriers only need to turn the promise into sustainable and acceptable profits. Let’s hope 2013 doesn’t bring another unexpected shock and that more profitable times are ahead.
