EU trade scheme embraced by some airlines
January 13, 2012, 05:13 pm
After the European Union implemented a new carbon tax on international airlines, many countries responded with criticism and threatened to boycott the law. However, some major airlines are taking advantage of the carbon law to purchase emission credits at bargain prices.
Reuters reported Deutsche Lufthansa AG, Air France and other large airlines have started buying their carbon permits, ignoring the backlash from airlines in China, India and the United States who demand the law be repealed. The EU allowances are at record low prices, thus the airlines plan to purchase as much as they can before the prices rise with demand from international carriers. Slovakia's Commodity Exchange Bratislava recently announced it will be the first exchange to launch trade in EU aviation allowances in February, in response to the expected rise in demand for the allowances.
In addition, some organizations within the United States believe the carbon tax implemented by the EU is a good plan to combat global warming and believe the United States should have similar restrictions with domestic carriers. Attorney Martin Wagner from EarthJustice told the Fowler Tribune that environmental organizations hope the EU trading scheme will influence the U.S. government to create an emissions requirement of their own.
"We want the same kind of, or an equivalent, regulation that creates an incentive for U.S. airlines to reduce their emissions to go into effect here," said Wagner.
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