Wednesday, 15 June 2011
Airlines and the EU emission trading scheme: "a $1.5 billion cash grab that would do nothing to reduce emissions".
There could be less Air China landings in Frankfurt - and also less Airbus purchases by Air China - if the EU insists on including Chinese airlines in the ETS scheme
The opposition against the European Union´s dubious plan to force international airlines to join its cap-and-trade program is fast growing:
China’s airline association has declared that it “totally opposes” the EU’s plan to expand its cap-and-trade program from 2012 to include airlines, adding the initiative may prompt trade conflict.
The Air Transport Association of America is also planning legal action against the EU Commission’s plan.
At the IATA general meeting in Singapore, the EU plans were slammed:
Opposition to the European Union's emissions trading scheme has come out in full force at the IATA annual general meeting in Singapore, with airlines and industry officials across the globe warning that it would severely affect an industry that is already highly taxed and raise the spectre of retaliatory moves elsewhere.
The scheme, which is due to come into force next year, was described by IATA director general Giovanni Bisignani as "a $1.5 billion cash grab that would do nothing to reduce emissions". Calling for a global approach to tackle climate change, he said "basta" to Europe and added it to the IATA wall of shame.
"It is going to be a big disruption in our competitiveness," adds Antonio Vazquez, chairman of Iberia and parent International Airlines Group."If you need to make a connection and avoid Europe, you would do it. The impact would be significant, it will affect traffic."
Read the entire article here
Europe´s own airlines are also critical. Ulrich Schulte-Strathaus, secretary general of the Association of European Arlines is warning about the consequenses of the EU´s plans:
And now we are facing the threat of retaliation from the world’s most powerful economic and political players who feel EU ETS imposes on their sovereignty. As Mr Dings implies, the way to avoid EU ETS is to avoid Europe. At a time when Europe’s economic recovery is lagging, is it wise to cripple its air links, damaging imports, exports and mobility?
Then there is the myth that the cost of aviation’s inclusion in EU ETS is modest. For European airlines, the average annual cost of EU ETS will be about €3.5bn. Between 2000 and 2010 this “modest” burden would have pushed AEA’s member airlines into the red in every year apart from 2007.
The EU Climate Commissioner, former Danish journalist Connie Hedegaard still keeps on defending the EU plan, calling it a “practical example” of steps that need to be made to prevent global warming. However, the Chinese and the Americans are not going to accept this EU climate madness, which means that only European airlines will be affected. This will be another self-inflicted wound in the already bleading body of the European economy. It is time for people to stand up and say no to this totally useless EU climate alarmism!