World airlines get EU carbon breathing space

EU airlines now at potential disadvantage

The European Union will freeze its rule that all airlines must pay for their carbon emissions for flights into and out of EU airports for a year the EU executive said, following threats of international retaliation.

Flights within the European Union will still have to pay for their carbon emissions. The year-long exemption will apply to flights linking EU airports to countries outside of the bloc.

Climate Commissioner Connie Hedegaard said she had agreed "to stop the clock" to create a positive atmosphere for international talks on an alternative global plan to tackle airline emissions.

"But let me be very clear: if this exercise does not deliver – and I hope it does – then needless to say we are back to where we are today with the EU ETS. Automatically."

The United States, China and India have put intense pressure on the European Union. Debate in the U.S. Congress is set to resume this week on legislation to counter the EU rules.

U.S. politicians welcomed Monday’s news, but wanted more.

"While I am pleased the EU has temporarily suspended its efforts to unilaterally impose a tax on our airlines flying over U.S. and international airspace, the EU’s announcement does not rule out future efforts to tax foreign carriers," said Senator John Thune, who has led the push for the blocking law in the U.S. Senate.

EU member states still have to formally endorse the Commission’s proposed freeze. Hedegaard said she had informed representatives of all 27 member states of the Commission’s plan but could not specify how long the EU approval process might take.

Some airline associations welcomed Monday’s announcement, but said the moratorium meant EU carriers operating flights within the bloc could be at a competitive disadvantage.

Environment campaigners said the European Union was giving up too much, too soon.

"The Commission, with today’s decision, has moved further than necessary given the little progress made so far at ICAO level," Bill Hemmings, programme manager at campaign group T&E, said. "There is no excuse for inaction left."

The latest decision means the EU would not require allowances to be surrendered in April 2013 for emissions from such flights during the whole of 2012.

The monitoring and reporting obligations will also be deferred for such flights.

The obligations relating to all operators’ activities within EU will remain intact and compliance with the EU law will be enforced in this respect.

EU commissioner for climate action, Connie Hedegaard, said: "The EU has always been very clear: nobody wants an international framework tackling CO2-emissions from aviation more than we do.

"Our EU legislation is not standing in the way of this.

"On the contrary, our regulatory scheme was adopted after having waited many years for ICAO to progress.

"Now it seems that because of some countries’ dislike of our scheme many countries are prepared to move in ICAO, and even to move towards a Market Based Mechanism at global level."

Hedegaard warned that, in the unlikely event of the ICAO Assembly failing to move forward, the EU ETS legislation would be applied in full again from 2013 onwards.

Valere Tjolle

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