European Environment Ministers Agree on Aviation GHG Scheme
21 December 2007
European Union Environment Ministers meeting in Brussels yesterday reached political agreement on a draft directive that includes aviation in the EU emissions trading scheme (EU ETS) for greenhouse gases. The Environment Council noted that the directive does not affect other means of addressing climate change through a comprehensive approach based on improved technology and utilization of aircraft.
Under the council’s directive, all airlines flying to and from EU members states would join the scheme in 2012. An earlier proposal from the European Commission suggested that international flights be given an extra year. (Earlier post.) Non-EU countries, such as the US, have suggested that legal action may result if Europe tries to force compliance with such a unilateral directive.
Other provisions of the directive include:
Emissions will be capped at 100% of the average level for the years 2004-2006. European Members of Parliament were looking for a 10% cut.
Although the directive applies to aircraft operators irrespective of nationality, flights arriving from a country with similar measures in place would not be included.
The level of auctioning has been increased to 10%, and revenue from the auctioned allowances should be used to combat climate change. However, the ultimate decision on the use of funds is left to member states.
Other climate-impacting gases (such as NOx) are not included.
Airlines with very low traffic levels on routes to, from or within the EU would be exempt. Air services of public utilities would also be excluded.
A special free reserve of 3% of total allowances for new entrants or very fast-growing airlines has been added.
As a last enforcement resort, member states could ask for an operator to be banned from operating in the EU if it persistently has failed to comply with the scheme and other enforcement measures have proven ineffective.
The political agreement reflected in this proposed directive will now formally be adopted as a “common position” some time in 2008. It will then be sent to the European Parliament for a second reading.
Members of Parliament (MEPs) had voted in November to toughen the Commission’s original proposal by adding an emissions multiplier to reflect the greater climate impact of aviation when compared to ground sources and by implementing trading restrictions designed to ensure aviation cuts its emissions rather than just buying cheap permits from other sectors. Neither of those proposals are reflected in the Environment Council’s draft. The Parliament and ministers will have to come to an agreement in further discussions next year.
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This is good news. EU is taking a lead position with many GHG reduction measures.
As usual, USA companies are treatening with legal retaliations.
Will we ever change?
Posted by: Harvey D | 21 December 2007 at 08:09 AM
Looks like a step forward, yet I wonder why nitrogen oxides aren't included.
Posted by: Jim G. | 21 December 2007 at 11:18 AM
I'd guess the big reason is that there is no NOx trading scheme to incorporate into. Also any agreement would be hard to achieve so I'm not surprised that this first one is minimal.
It was frustrating before that the airlines could happily fly outside the CO2 trading mechanisms. But I'm happy for them to buy credits from other industries: surely the whole point of the system is to let the economy find the cheapest way to reduce CO2. Perhaps they could weight the plane emissions by there relative impact.
Posted by: DavidJ | 21 December 2007 at 04:11 PM