Page 19 - AAA MARCH-APRIL 2012 Online Magazine

FEATURE EMISSIONS

Smoke

Signals

The European Union says it is committed to reducing
carbon-dioxide (CO2) emissions by 20% in eight years
time. As part of this, any airlines flying in European
airspace will have to pay for carbon credits - starting
April 2013. And many airlines are not happy at all.
By Neelam Mathews

THE EUROPEAN UNION’S (EU) DEADLINE might lead to a trade war. Already, with
for 20% by 2020 may seem far away, but China blocking European companies from
as Phase III of the EU’s Emissions Trading Chinese public tenders, the European
Scheme (ETS) will begin in 2013, airlines Commission is preparing plans that
are voicing strong concern. will allow individual EU countries to bar
“We cannot do something which is foreign bids from countries that refuse
against our country’s interest,” Hong Kong to open up their public procurement
Airlines president Yang Jianhong told the markets according to the European
South China Morning Post newspaper Union Information website, EurActiv.
in Hong Kong. Hong Kong Airlines, a Airbus CEO Louis Gallois accused China
subsidiary of Chinese carrier Hainan of blocking purchases of its aircraft in
Airlines, said it was under pressure to retaliation for EU’s ETS.
cancel the acquisition, worth about $3.8 IATA director general Tony Tyler has
billion at list prices. “It would be foolish even questioned the basic affordability
for (both sides) to get into a situation that of the ETS. “Departure taxes in the UK,
starts with principle and degenerates Germany and Austria – introduced as
into a tit for tat,” says Andrew Herdman, environmental measures – amount to
director general of the Association of well over €4 billion. At current market
Asia Pacific Airlines (AAPA). Warning of prices for UN-issued Certified Emissions
possible retaliatory actions, Herdman Reduction [credits], that would offset the
cautions dialogue: “Before it gets worse, world’s CO2 emissions about one-and-a-
governments in Europe should resolve half times. And ETS is being added on top
this issue.” of that!” he explains.
The stalemate over who should pay, how
much, and why, continues. AAPA says it is
deeply concerned that fundamental political
differences between the EU and non-EU
governments regarding the application of
the EU ETS to international airlines remain
unresolved, leading to heightened fears
about the threat of retaliatory measures that
could be detrimental to the interests of the air
transport industry and the travelling public.
Some quarters even voice concerns this
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