AirNewsTimes Uk About US Contact

EU Court Upholds Carbon Trade Plan for Aviation

EU Court Upholds Carbon Trade Plan for Aviation

U.S. airlines failed Wednesday to block an EU law charging airlines flying to Europe for their carbon pollution.

» Airlines - W | Thursday, December 22, 2011 • Air News Times
The decision by an EU court was widely hailed by environmentalists but the Fitch ratings agency said it raised the spector of a global trade dispute.

The European Court of Justice in Luxembourg dismissed arguments that imposing the European Union's cap-and-trade carbon credits program on flights to and from European airports infringes on national sovereignty or violates international aviation treaties. U.S. and other non-European airlines had sued the EU, arguing that they were exempt from the law.

Environmentalists called the law a first step in controlling carbon emissions in a key economic sector, and EU officials said they expected airlines to comply.

But Fitch Ratings said the decision could deepen rather than quell the dispute, raised in a lawsuit brought by the trade organization Airlines for America and several U.S. airlines and supported by China, India and other countries with international carriers.

"We believe threats of trade retaliation over the EU's cap-and-trade system will pose growing threats to aviation market access in both developed and emerging markets next year," Fitch said.

Retaliation could come in the form of slot allocations at airports and authorizing routes, especially in developing countries, Fitch said.

The U.S. airlines said the regulation was tantamount to "an exorbitant tax," but the EU said the added costs would amount to a few dollars per ticket and would open the way for efficient airlines to make money rather than lose it.

The carbon trading program, due to go into effect Jan. 1, is one of the widest-reaching measures adopted by any country or regional bloc to regulate emissions of greenhouse gases blamed for climate change. It aims to make airlines accountable for their carbon emissions, which contribute to global warming.

Although only 3 percent of total human-caused carbon emissions come from aircraft, aviation is the fastest-growing source of carbon pollution.

U.S. airlines most affected are United Continental, Delta and American Airlines, all of which derive more than 20 percent of global revenues from trans-Atlantic traffic, Fitch said.

The U.S. trade group said its members would comply with the EU directive "under protest," while reviewing legal options.

"Today's court decision further isolates the EU from the rest of the world and will keep in place a unilateral scheme that is counterproductive to concerted global action on aviation and climate change," Airlines for America said in a statement from Washington. "Today's decision does not mark the end of this case."

Under the scheme, each airline will be allocated pollution permits slightly less than its average historical emissions record. If it exceeds its limit, it can buy permits from other airlines that have emitted less than allowed and have leftover permits to sell. Emissions are counted for the entire route of an aircraft that touches down in Europe.

The intention is to induce airlines to emit less carbon by upgrading their fleets or becoming more efficient.

The International Air Transport Association voiced disappointment with the ruling, saying that "unilateral, extra-territorial and market distorting initiatives" like the EU's only make it harder to reach a deal through the International Civil Aviation Organization, the U.N. regulatory agency for airlines.
Warning: Comments which include insulting, offensive sentences or hints, assault and comments with the unwritten rules of spellingand written in English characters incorrectly will not be approved.
Login to make a comment with your user name
Yorumunuzu Sendin
Tüm Yorumları Okumak İçin tıklayın

More News

New Airbus aircraft list prices for 2015
Wednesday, January 14, 2015    
Pegasus adds more French and Italian destinations
Thursday, January 8, 2015    
Saudia operates Boeing B777-300ER to Manila
Thursday, January 8, 2015    
Royal Air Maroc takes delivery of first Dreamliner
Monday, January 5, 2015    
Air Arabia to open new international hub in Jordan
Monday, January 5, 2015    
Ryanair Launches ‘Crazy Fares’ From £9.99
Saturday, January 3, 2015    
Boeing Delivers Four 737s to Dragon Aviation Leasing
Saturday, January 3, 2015    
Lufthansa Group aircraft fly from Oslo on biokerosene
Saturday, January 3, 2015    
Qatar Airways adds Amsterdam to its network
Saturday, January 3, 2015    
Airbus: AirAsia Indonesia flight QZ 8501
Wednesday, December 31, 2014    
Siem Reap airport hits the 3-million passenger mark
Wednesday, December 31, 2014    
Gulf Air increases Muscat connections
Wednesday, December 31, 2014    
AAPA Statement on Air Asia Indonesia QZ8501
Wednesday, December 31, 2014    
Dr Temel Kotil, President and CEO of Turkish Airlines
Friday, December 26, 2014    
Emirates finishes the year on a high
Friday, December 26, 2014    
Sixteenth Sukhoi Superjet 100 Joined Aeroflot Fleet
Friday, December 26, 2014    
Turkish Airlines to expand Birmingham-Istanbul services
Wednesday, December 24, 2014    
Pegasus adds more French and Italian destinations
Pegasus adds more French and Italian destinations
Pegasus Airlines, Turkey's leading low-cost carrier, continues its rapid gr
Ryanair Launches ‘Crazy Fares’ From £9.99
Ryanair Launches ‘Crazy Fares’ From £9.99
For Travel In January On Tuesdays, Wednesdays And Thursdays
Turkish Airlines to expand Birmingham-Istanbul services
Turkish Airlines to expand Birmingham-Istanbul services
Turkish Airlines has announces that it will increase services between Birmi
Stansted passenger numbers take-off for winter
Stansted passenger numbers take-off for winter
Stansted Airport experienced its busiest November in eight years as passeng
GE Aviation wins Boeing 777X systems contract
GE Aviation wins Boeing 777X systems contract
GE Aviation has been selected by Boeing to provide the common core system (
Aviation Unites on Cyber Threat
Aviation Unites on Cyber Threat
With the safety and security of the global aviation system potentially vuln
Emirates A380 passengers enjoy free Wi-Fi
Emirates A380 passengers enjoy free Wi-Fi
Over 200,000 passengers have used Emirates' free onboard Wi-Fi since Octobe
  • Kara Kutu

  • Çok Okunan

  • Yorumlanan

AirNews'i Delicious'ta PaylaşınAirNews'i Stumbleupon'da Paylaşın!AirNews'i Twitter'da Takip Edin!AirNews Facebook Sayfasını Ziyaret EdinAirNews RSS
UK News | World | Aviation | Airlines | Airports | Business | Space | Technology | Tourism | Photos | Videos

This Site All Rights Reserved. Not be quoted without permission.

Copyright © 2008 - 2011 airnewstimes.co.uk

Design / Software: Air News Times