Isra-Mart srl: Airbus, AEA urge EU to reconsider airline CO2 emission scheme

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The Association of European Airlines (AEA) and European aircraft manufacturer Airbus have jointly requested EU decision-makers to reconsider the inclusion of civil aviation industry into the EU Emissions Trading Scheme (ETS), warning of potential trade wars resulting from this move, according to a signed letter obtained by Xinhua on Thursday.

"We are extremely worried that aviation's inclusion in EU ETS will create a trade conflict with the world's most powerful economic and political players," said AEA Chairman Steve Ridgway and Airbus President Tom Enders in the letter.

The signed letter, addressed to European Commission President Jose Manuel Barroso and two vice presidents Almunia and Kallas, is filled with the two industrial leaders' deep concerns over the present disputes and request for further discussion on the issue during a meeting on July 7.

The inclusion of civil aviation industry into the EU ETS has sparked wide opposition to this scheme that is to extend from a regional coverage to "a unilateral tax imposed on third-country carriers serving the European Union."

This worry is "understandably" but risky to trigger trade conflict or "retaliatory measures" against European carriers, they pointed out, appealing the EU commission to take into account third country responses.

According to the two industrial leaders, the European civil aviation industry, a pivotal growth pillar for the 27-countries bloc, is too vulnerable and important to endure any possible trade conflicts, which would be marked by revenge action, given that Europe still lags behind other regions in economic recovery from the impact of the global financial crisis.

European air transport supports the bloc's exports and tourism with a general revenue of 275 billion euros (399.2 billion U.S. dollars) and hires 4.5 million employees.

Citing "these times of austerity," Ridgway and Enders said it would be "madness" to put this industry under the fire of trade retaliation actions.

Aiming to limiting carbon dioxide emissions, the European Union decided to include the civil aviation industry into the ETS from 2012, which means from Jan. 1st, 2012, any air carrier serving EU area shall purchase permits of any CO2 emission exceeding the limit share of free allowances.

This move has aroused huge criticism from non-EU airline operators, including those of the United States, Latin America and China.

The EU was "ignoring international law with its plans to include international aviation in its ETS," Giovanni Bisignani, IATA's director general, said at its recent annual meeting in Singapore. Latin American operators has called this EU decision an "ill conceived initiative."