Effects of the aviation emissions requirements
January 3, 2012, 05:38 pm
In early December, the European Court of Justice rejected a petition by a group of U.S. airlines that wanted to overturn a European Union decision to require all international air carriers flying in and out of EU states to participate in the carbon trading regime. The goal of the plan is to work towards reducing greenhouse gas emissions. The European Court of Justice said the rules do not infringe on the sovereignty of other nations, and thus the requirements are to commence January 1.
The Huffington Post reported the new rules are expected to result in increased airfare for passengers and a new level of economic risk for airlines that are more vulnerable to fluctuating carbon prices. Experts predict the new regulations could cost U.S. airlines $2 billion to $4 billion through 2020 if they comply with the EU's measure.
In response to the EU's decision, more than 20 governments are protesting the decision, and the International Air Transport Association and aviation experts fear the argument could result in a trade war. In addition, the U.S. House of Representatives passed a bill forbidding U.S. airlines from participating in the EU's carbon market, the source reported.
Countries that protest the new requirements believe the measure violates international trade and aviation law, and emerging markets may rise up due to the added costs. Environmentalists, however, believe protesting countries are blowing the issue out of proportion and are missing the big picture. Vera Pardee, an environmental lawyer, said if airlines comply with the regulations they could actually make money, the source reported.
Further, the EU said it would exempt airlines from the requirements if they are already participating in equivalent emissions-reduction policies throughout their own national laws. But countries and airlines against the new requirements argue the EU is in conflict with a plan from the International Civil Aviation Organization to create a market-based emissions scheme for international air travel that could be ready in 2013.
According to Eco Business, U.S. Secretary of State Hillary Clinton wrote a letter to the EU commissioners warning them that the United States will take "appropriate action" if the emissions trading scheme is not halted. Chinese airlines also threatened legal action against the EU, and other European airlines are becoming anxious of a trade war.
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