Isramart : Airways Will Pay for CO2 Emissions from 2012

Isramart news:
Starting from 2012, the aviation sector, including 33 Chinese airways, will have to pay for the CO2 it emits and increase their operation costs under the Emission Trading Scheme (ETS) of European Union (EU), China Business News (CBN) reported Tuesday.

According to an EU’s list released on August 22nd, more than 2,000 airways enter the EU ETS, which means they will be charged for the CO2 emissions when their flights land or take off within the EU.

From 2012, these airlines will be allotted certain emission quotas, and they can sell their quota surplus or buy the shortage, according to the EU’s regulation. The quotas are set to decrease year on year.

“With increasing margin for Chinese airlines on European lines, the ETS will increase cost pressure on domestic airlines,” a Chinese airline’s official told CBN.

Take Air China for example. One of the largest aviation giants in China, it accounts for the largest market share in the international lines and owns more than ten European routes facilitating at least 40 flights every week. Under the upcoming proposals, charges for CO2 emissions will be increasing, CBD said.

The International Air Transport Association (IATA) estimated that under the EU ETS, the total charge in 2012 would increase the aviation industry’s operational costs by 3.5 billion Euros (5 billion US dollars), or half of the aviation industry’s loss last year.