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Today's paper. Last Updated: 05/24/2012

Moscow Hosts Opponents of EU Carbon Rules

Reuters

BRUSSELS — Nations opposing a European Union law that forces all airlines to pay for their carbon emissions will meet this week in Moscow to debate an array of countermeasures, raising the risk of an aviation trade war.

China, the United States, India and Russia are among those to have expressed vehement opposition to the EU legislation requiring carriers using EU airports to acquire allowances under the EU Emissions Trading Scheme, or ETS.

The so-called "coalition of the unwilling" — bringing together 26 nations — has held a series of meetings.

At a two-day Moscow gathering beginning on Tuesday, Russian Transportation Minister Igor Levitin is expected to open the "follow-up international conference" on coordinating activities opposing the inclusion of aviation in the EU ETS.

According to the draft seen by Reuters, the meeting will go on to debate an unspecified "basket of countermeasures."

Other agenda items refer to a letter to EU member states and "aspects of Article 84 of the Chicago Convention," again without explanation.

Article 84 covers a formal dispute procedure at the UN's International Civil Aviation Organization, or ICAO.

Airline representatives and analysts have said it would be unwise to opt for the extremely lengthy formal dispute procedure before the ICAO has had another chance to find a global market-based solution to airline emissions.

The EU has said it only acted to include all airlines in its scheme because more than a decade of talks at the ICAO failed to find an answer to curbing rising carbon emissions from aviation.

But progress at the ICAO has accelerated since the EU began including all airlines in its ETS from the start of this year.

While the EU has said it will stand firm, it has also said it is very much in favor of global action and would adapt its law if the ICAO comes up with a worldwide scheme.





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Jeffrey Gazzard

An urgent reality check is needed to offset the notion that the entire aviation industry is a collection of anti-environment ETS-refuseniks. They aren't: there are already a significant amount of global airlines in full compliance with the EU Aviation ETS regulations. In fact, "significant" in this case means 100%, as every single airline that flies in and out of the EU has already registered under every aspect of the ETS with their respective regulator in each EU member state; they have met every deadline along the way; and many are active in carbon markets. They have effectively already surrended. And here is a snapshot of how ticket prices are already being impacted: • Etihad Airways, Abu Dhabi's carrier, has increased the fuel surcharge on all its flights to Europe to counter the costs of the EU's Emissions Trading Scheme by USD$3 per passenger for flights into and out of Europe and 0.03 cents per kilogram for cargo shipments. • Delta Air Lines, American Airlines, United Continental and US Airways say they have already added a  $3 surcharge each way on tickets for flights between the United States and Europe • ryanair introduced a €0.25 levy per passenger per flight from 17th January to cover its' ETS costs • Air France/KLM, British Airways and Lufthansa have each added ETS costs to ticket prices via an increase in their existing fuel surcharge although the actual amount is a little opaque • and many other airlines, such as Thai Airways, have already been buying carbon permits, taking advantage of the current record low prices of around €7.9 per tonne of carbon. These are low, low pass through levels that will not bring about the collapse of air transport as we know it! Now call me naive but this is compliance, is it not? It is sad but true that all the countries meeting in Moscow later this week appear simply to want to bring about the complete collapse of the EU ETS, nothing more, nothing less. We know today that growth in global aviation fuel use and emissions through to 2050 unfortunately outpaces the very best that airframe/engine technology, improved ATM systems and smart operational techniques have to offer. And this includes the rather witless promotion of unsustainable biofuels as part of the industry's PR-led attempt to manufacture consent for unlimited growth. They have nothing to offer but a high carbon future. This is not a destination we should all be hurtling towards at 39,000 feet and 500 miles per hour. The EU rightly continues to stand firm to protect the integrity of the aviation ETS which clearly should be developed as the global market-based element in a worldwide programme to control and reduce damaging climate change emissions from civil aviation. Jeffrey Gazzard Board Member Aviation Environment Federation LONDON

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