Global airline industry in uproar over European green tax

World trade war gets a bit closer

CNN reports this week that “The global airline industry may be forced to join the EU's Emissions Trading Scheme (ETS) next year, a carbon trading system that already includes most other polluting industries.”

Asian airlines will likely be paying US$400 million a year for their carbon emissions on European routes.

A Cathay Pacific spokesman told the South China Morning Post that "it is inevitable that the increased costs will be passed on to the passengers" at an average of US$8 per person.

Making the polluter pay says European Union.

It may not seem like much, but global airlines made US$18 billion in net profit last year and that translates into a profit of approximately US$7 per passenger. It was the industry's best year since 2000.

"It seems high time that this polluter-pays principle is finally also applied to aviation's greenhouse gas emissions," said Hedegaard.

"How can we ever hope to make ordinary citizens of the world play their part in tackling climate change if the financier from Hong Kong or London or the businessman from Guangdong or Frankfurt is not asked for any contribution whatsoever in respect of the significant emissions that he incurs on an intercontinental flight?"

Reports CNN: The highly competitive airline industry is in an uproar over the proposed tax policy with some media predicting a "global trade war" in the future.

The industry has consistently resisted participating in the ETS in the past and continues to do so.
As the Global Post puts it:

"The EU is asserting the right to assess these fees in the absence of a global agreement, or any reciprocal measures by other governments, to do so; it will be charging for the entire length of a flight, not just the portion in European airspace; and the earnings from the carbon dioxide charge will go directly into the coffers of EU governments, with no requirement that the money be spent to combat global warming, on research and development, new aviation technology or any other tool to protect the environment."

The non-EU governments most opposed to the plan are the United States, China, India and Russia.
Carriers in the United States have taken the EU to the European Court of Justice for including airlines in the emissions trading scheme. The results of the case will be known on October 6 and will set a precedent for all other airlines.

And read more about the concerted global travel campaign against the EU levy: http://www.travelmole.com/stories/1147970.php

Valere Tjolle
Valere is editor of the Sustainable Tourism Report Suite 2011 Special Offers HERE