Isra-Mart srl: Emirates says Carbon Tax Scheme May Cost $1 Billion

www.isra-mart.com

The flagship carrier of Dubai, Emirates, said that the new carbon emission scheme from the European Union could cost as much as $1 billion over the course of 10 years. This news was released by Emirates as it joined the long list of other airlines that are objecting to this tax.

Starting in January of next year, any airlines that fly to or from Europe are going to have to buy permits from the European Union’s Emissions Trading Scheme. The airlines have to buy enough permits to cover 15 percent of the carbon emissions produced during their whole flight.

The senior vice president of Emirates, Andrew Parker, said that this scheme will have a very significant impact on Emirates and other airlines around the world. It is safe to assume that around $1 billion will be collected from this scheme during the first decade.

It is no wonder that Emirates is so upset about this new scheme. About a quarter of all Emirates’ flights operate in Europe. Despite this fact, Parker said that all flights are going to be subjected to this new scheme.

Airlines have already been warning the European Union that a trade war was likely to develop from this new scheme. Despite this, the European Union said that it will not back down.

Parker finished up by saying that his airline does not feel like this scheme represents the best global approach to reducing aviation’s impact on the environment. The biggest concern is that billions will be raised from this scheme, but none of this money will go back into research and development to help the aviation industry.