E.U. Closing in on Airline Emissions

Perhaps heeding protests from the airline industry, European Union environment ministers agreed yesterday to a less taxing proposal to include airlines in the bloc’s emissions trading program beginning in 2012. 

The decision must still be agreed upon by the European Parliament, which previously approved a more demanding proposal that would include airlines starting in 2011. It’s expected that some compromise of the two approval will soon be approved, though it may draw legal action from the United States, which has threatened litigation through international arbitration bodies.

The E.U. has consistently asserted that the airline industry, which is responsibly for approximately 3% of global greenhouse gas emissions, must do its part in the fight against global climate change.

"This is a bold step by Europe …, which shows the E.U. leading in the fight against dangerous climate change," said British Environment Minister Hilary Benn.

The E.U.’s emissions trading program would require airlines to use carbon permits for flights within E.U. territories as well as intercontinental flights originating in or departing from E.U. countries. Airlines would receive a certain number of free permits and would have to buy the remainder at auction.

Thursday’s decision by environmental ministers would require airlines to purchase only 10% of their needed permits in 2012, versus the 25% proposed by the European Parliament. Figures for each year thereafter have not yet been settled, though the percentages will increase over time.

Environment ministers also gave the industry more leniency in regards to an emissions cap, which they set at 100% of average emissions from the period 2004-2006. Parliament had proposed 90%. 

According to a statement made last month by Giovanni Bisignani, director general of the  International Air Transport Association (IATA), the proposal set forth by the environmental ministers would cost the airline industry US$3 billion a year, while the Parliament draft would cost US$7 billion. The IATA has been an opponent of the movement to include airlines in the emissions trading scheme.

Some environmental groups are pointing to the $4 billion difference and calling "foul."

"This is a Christmas gift to the aviation industry which should be required to do its fair share in tackling climate change," said Delia Villagrasa, senior adviser at the WWF environmental group.

The E.U. proposal does not include military flights or flights by foreign governments, though E.U. government flights will be included.