Soon aviation in the EU’s Emissions Trading Scheme (EU-ETS) will take effect
It is now only a few months before the inclusion of aviation in the EU’s Emissions Trading Scheme (EU-ETS) will take effect, and international opposition is mounting. In particular, opponents stress that the EU has no jurisdiction to “tax” flights which do not take place in EU Member State airspace.
This regional measure is the first of its kind and has been criticised by airlines and third country governments. Since the adoption of the legislation in 2009 that obliges all flights arriving at, or departing from, a European airport to participate in the EU-ETS, a group of countries led by the US, Canada and China has openly criticised the inclusion in the EU-ETS of aircraft in their register.
China has already raised the possibility of blocking its airspace to EU carriers if the EU insists on the inclusion of Chinese carriers in the scheme. Furthermore, the US Air Transport Association has lodged a case against the EU-ETS at the UK High Court, which has been referred to the Court of Justice of the EU for a so-called Preliminary Ruling (expected early in 2012).
Furthermore, the point is made that the imposition of charges is only possible upon mutual consent by all involved parties. This is a long-established principle of the convention governing the International Civil Aviation Organisation (ICAO), the UN body dedicated to aviation.
In addition to this, the US House of Representatives Transportation and Infrastructure Committee adopted on 8 September the European Union Emissions Trading Scheme Prohibition Act of 2011 (available here) – this bill prohibits US carriers to participate in the EU-ETS and it justifies these measures on grounds of national sovereignty.
Furthermore, it suggests that the EU-ETS undermines the efforts of the International Civil Aviation Organisation (ICAO) to come forward with a global emissions reduction scheme. The bill goes on to criticise the fact that it is uncertain whether the revenues collected by the EU-ETS will be used to offset CO2 emissions.
While final adoption of the bill by both the US House and Senate cannot be guaranteed, it is important to note that it has so far enjoyed bipartisan support at Committee level.
The final adoption of this bill would have severe consequences for the EU’s ambitions to include aviation in the EU-ETS. The absence of US carriers in this scheme would create distortions of competition for EU carriers, and send a strong signal to other international operators that they can oppose the system should they feel strongly enough, with opposition by the European industry almost guaranteed.
Furthermore, the failure of the EU-ETS for aviation is expected to seriously undermine the EU’s ongoing ambitions in relation to a similar measure for international maritime transport.
Source : INTERTANKO