Isra-Mart srl: Bisignani to EU: Scrap ‘illegal’ ETS

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Outgoing IATA DG and CEO Giovanni Bisignani labeled the European Union's Emissions Trading Scheme "illegal" and called for airlines' inclusion in the scheme starting next year to be abandoned, warning that a trade war is possible. Bisignani's comments, made at IATA’s 67th AGM in Singapore Monday, came as EU Climate Action Commissioner Connie Hedegaard rejected any yielding over the EU ETS's inclusion of aviation from 2012.

Bisignani warned media that there are a growing number of states strongly opposed to the "illegal scheme." The outgoing DG singled out China as an example of a state expressing serious concerns with murmurs of a trade war (ATW Daily News, May 16). "We have to avoid retaliation because the risk of retaliation for a Europe that is in survival mode would be the kiss of the death," Bisignani said. "Uncoordinated and punitive regional measures distort markets and undermine global efforts to reduce emissions. The EU ETS is a $1.5 billion cash grab that will do nothing to reduce emissions."

Bisignani noted that the Dutch government has repealed a $412 million departure tax because it cost the Netherlands' economy $1.6 billon.

"Similarly, the Irish government is planning to cancel its $165 million travel tax because it has cost the economy $494 million and 3,000 jobs," he added. "Don’t kill the goose that lays golden eggs. Aviation facilitates the global trade that is stimulating economies and restoring government budgets … It is time to be serious about climate change and honest in developing global solutions."

Separately, Bisignani urged the development of a "checkpoint of the future" for aviation security to lessen the hassle factor of air travel (ATW's Airports Today, Jan. 5). "Aviation is much more secure today than in 2001, at a cost of $7.4 billion annually," he explained. "But our passengers only see hassle because governments are not working together. Passengers should be able to get from curb to gate with dignity—without stopping, stripping, unpacking and certainly without groping. We must make coordinated investments for civilized flying."

Bisignani also turned his sights on what he termed "big oil" and called on petroleum companies to commercialize sustainable biofuels at competitive prices to meet agreed targets. "Big oil is green in its advertising but not in its actions," he charged. "It prefers to pocket the $1 trillion in profits that the Big 5 made over the last decade than to invest in green initiatives."