Leaders from European airlines and other industry stakeholders are meeting in London to discuss a range of issues, including how best to convince the European Union to back off from its plan to extend the EU’s emissions trading system (ETS) to airlines in January. Although the law underpinning the ETS’s coverage of airlines cannot be changed before year-end, the European Commission could agree to set aside enforcement pending a resolution of some of the controversial issues, notes one industry official closely tracking the discussion.
Meanwhile, representatives from 21 countries from North and South America, Asia and Africa, including the U.S., Japan, India, Russia, China, Argentina and the U.A.E., called on ICAO to continue its efforts to reduce airlines’ greenhouse gas emissions in a joint declaration signed in New Delhi on Sept. 30. The declaration opposes the EU ETS as inconsistent with international law, including the Chicago Convention. It also urges ICAO to develop a “meaningful aircraft CO2 standard with a possible implementation date of 2013. The declaration acknowledges that growing aviation greenhouse gas emissions are a concern, but it highlights the advances in fuel efficiency and stresses the need for comprehensive air traffic management reform along with advances in biofuels and other technological solutions to the problem.
The 21 countries ask the EU to refrain from applying the ETS to non-EU carries and urges the bloc to “work collaboratively with the rest of the international community to address aviation emissions.” The declaration also invites any other state to associate itself wiht the declaration, and says the countries intend to continue to work together to oppose the ETS on their airline operators.
The meeting among the European airlines and stakeholders, which comes ahead of an Oct. 6 preliminary ruling scheduled to be relased by the European Court of Justice (ECJ), was called because of fears that non-EU countrie would retaliate. Those airlines have mounted a legal challenge in a case that was heard by the ECJ in early July. The court’s final ruling still is months away.
China and Russia have suggested unilateral actions to fight the EU policy. One concern is Russia could curtail overflight rights for European airlines flying to Asia, the industry official says.
Another concern is that the European Commission’s environment directorate may negotiate so-called equivalent measures with other countries. Under the terms of the EU law, if other countries put in place equivalent measures to charge for airline carbon dioxide output, then the EU would set aside its charging mechanism for those countries. But European airline officials worry the definition of what constitutes an “equivalent measure” could lead to market distortions, giving foreign carriers a pricing edge.
In a June meeting in Brussels during which Obama administration officials demanded that the EU exempt U.S. carriers from the ETS, the topic of equivalent measures did come up. In a background briefing with reporters after the meeting, an Obama administration official said the U.S. is concerned that the concept of equivalent measures “raises the prospect of discrimination and could harm U.S. carriers.” The official went on to say that hearing EU officials’ comments on equivalent measures “did not allay our concerns.”
Meanwhile, a study on biofuels conducted by a team led by the French aerospace research agency Onera recommends that some of the revenue generated through the ETS be plowed into developing a biofuel industry to support aviation. The 26-month study was undertaken for the European Commission.
Other recommendations include putting in place incentives to encourage the production of biomass which would form the feedstock for biofuels as well as the harmonization of certification stages for sustainable biofuels through the International Civil Aviation Organization.
Photo: Airbus
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