Isra-Mart srl: Chinese, Arab airlines push back against EU ETS

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The China Air Transport Assn. and the Arab Air Carriers Organization reiterated their calls for the European Union to rethink plans to include aviation in its Emissions Trading Scheme starting next year.

In line with its counterparts in the Americas—the US Air Transport Assn. and the Latin American and Caribbean Air Transport Assn.—CATA and AACO doubt the legality of applying the EU ETS to international aviation (ATW Daily News, July 6). "Trying to impose a unilateral approach will only lead to conflict and will not lead to a better environment," AACO stated, advocating instead a global solution under ICAO to monitor and control air transport carbon dioxide emissions (ATW Daily News, July 3, 2009).

CATA said the EU scheme is "unlawful and violates international law, which directly interferes with other countries' sovereignty and would seriously affect global airline industry's healthy and sustainable development."

AACO asserted that including airlines in the ETS is only "addressing, and wrongly so, the aviation emissions focusing on financial returns to EU governments … Aviation is a global business. The cause of the environment is also global. Therefore, the fight against climate change cannot be but global. Unilateral initiatives will not improve the environment."

Etihad Airways last week revealed that the cost of it complying with the EU ETS could reach up to €500 million ($719 million) total by 2020. "These estimates are based on a number of dynamic factors, including estimates as to the number of free allowances that will be granted to Etihad … our growth into Europe over the next 10 years, the ability of the industry to reduce emissions growth … and the cost of carbon," said Etihad Head-Environmental Affairs Linden Coppell.

CATA estimated the ETS will cost Chinese carriers CNY800 million ($123.6 million) annually and noted that the costs will keep rising as flights increase between China and Europe. The organization revealed it is assisting Air China, which operates a large number of routes to/from the EU, to prepare a lawsuit against non-EU airlines' inclusion in the ETS.