Exasperation at EU’s latest ETS decision

by ORIENT AVIATION 

April 1st 2014

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In another setback to finding a solution to the contentious Emissions Trading Scheme (ETS) for the global airline industry, the European Parliament’s environment committee has voted to reject a deal that could “Stop the Clock” on the ETS for non-European airlines until 2016. Read More »

The tied decision of a European Parliament committee, threatens the ‘Trilogue” agreement worked out by the European Parliament, the European Union and the European Commission earlier in March, which would only apply the ETS to flights operated in European Economic Area up to 2016.

The general uncertainty caused by the tied 29-29 vote of the European Parliament’s Environmental, Public Health and Food Safety Committee can now linger on until April 30, the final date for adoption, or not, of the Trilogue compromise by the full European Parliament.

The EU stopped the clock on its scheme for non-European airlines flying to and from the continent a year ago, but only for twelve months, to allow the International Civil Aviation Organization (ICAO) time to develop a global scheme for emissions reduction for the airline industry. The options for a market based measure, to apply by 2020, are planned for submission to the next ICAO meeting in 2016.

At its two week triennial Assembly in October last year, ICAO reached agreement to introduce a global scheme by 2020. But without an EU Parliament vote in favour of an extension, the clock will restart automatically on the ETS in its original format later this month. This would require all airlines that fly into EU airspace to pay for their emissions from the point of origin, even if the departure city is outside the EU zone.

If that happens, it is likely there will be some retaliatory action from opponents to the ETS, which include China, the U.S., India and Russia. China has banned its airlines from participating in the scheme. The country could impose financial penalties on the EU and also ban Chinese airlines from flying into Europe.

Major European countries, including Britain, Germany and France wanted the extension to ease threats of a trade war from important EU trading partners. The vote of the cross-party body is a preliminary indication of support for the Trilogue solution which will be put to the vote before the full 766-strong EU Parliament this month.