EU backs early start for airline carbon trading

MEPs threw down the gauntlet to struggling airlines yesterday by voting overwhelmingly to include aviation in Europe's emissions trading scheme (ETS) a year earlier than planned. The European parliament's environment committee said airlines should be covered by the ETS from 2011 rather than 2012 as proposed by the European commission and the 27 national governments. The MEPs pressed the EU to force airlines to bid for at least 25% of pollution permits and to set the cap on CO2 emissions at 90% of the levels between 2004 and 2006 rather than 100%, with the cap lowered in subsequent years from 2013.

The vote comes as airlines are suffering from rising fuel prices, forcing US carriers to cut flights and axe jobs and many others to impose surcharges on passengers. It also coincided with displays of alternative, "green" fuels at the Berlin air show.

Caroline Lucas, a British Green MEP, said the vote demonstrated determination to get tough with the aviation sector as a factor in global warming.

She accused national governments, including Britain, of being "shamefully keen" to water down the commission's proposals to auction the permits in an effort to prevent companies profiting from the free permits. Britain wanted to limit auctioning of permits to 10%, for example. Greens wanted 100% auctioning but said the 25% limit proposed for the first two years of the scheme would be increased. Peter Liese, a German Christian Democrat who drew up the committee's proposals, said the plan would cost passengers up to €10 (L8) extra on intra-EU flights and €40 more on transatlantic routes.

The Guardian
by David Gow
May 28 2008