j636
26th Sep 2011, 16:07
EU carbon rules to push up air fares? - RT News (http://www.rte.ie/news/2011/0926/air-business.html)
Flying between Europe and North America could become more expensive for travellers after the European Union begins forcing airlines to buy carbon emission permits next year.
The EU admitted today, as it unveiled rules governing the system, that it could prompt airlines to add between €4 and €24 to the price of a ticket for a return transatlantic flight.
The EU is pressing ahead with the system despite a court challenge by the US airline industry. Chinese carriers have also complained, saying it would cost them an additional €92.5m a year.
Starting on January 1, the EU will set a cap on the amount of carbon dioxide airlines can emit, and carriers will have to buy emissions permits to land or take off in the 27-nation bloc under the Emissions Trading Scheme (ETS).
The EU said airlines would receive 85% of their emissions allowances free of charge in 2012, a figure that will drop to 82% a year between 2013-2020.
This means airlines will have to buy 15% of their allowances next year, amounting to €380m. Aviation represents 3% of annual greenhouse gas emissions in the world.
"At current market prices these free allowances represent more than €20 billion over the decade," said EU climate action commissioner Connie Hedegaard. "With these potential revenues, airlines could invest in modernising their fleets, improving fuel efficiency and using non-fossil aviation fuel," she said.
The actual cost for airlines should be as low as €4 for a return trip. But the European Commission said nothing stops airlines from passing on the cost of the free allowance to customers, which could amount to €24 for a ticket.
It is up to the airlines to decide whether to bill passengers for the extra cost, the commission said.
The environmental group WWF welcomed the measures announced by Brussels, as "an important step in pricing carbon pollution caused by the aviation sector" even though most of the allowances will be handed out for free. "This is a modest but important start in reducing international aviation emissions," said WWF climate policy officer Sam Van den plas.
Flying between Europe and North America could become more expensive for travellers after the European Union begins forcing airlines to buy carbon emission permits next year.
The EU admitted today, as it unveiled rules governing the system, that it could prompt airlines to add between €4 and €24 to the price of a ticket for a return transatlantic flight.
The EU is pressing ahead with the system despite a court challenge by the US airline industry. Chinese carriers have also complained, saying it would cost them an additional €92.5m a year.
Starting on January 1, the EU will set a cap on the amount of carbon dioxide airlines can emit, and carriers will have to buy emissions permits to land or take off in the 27-nation bloc under the Emissions Trading Scheme (ETS).
The EU said airlines would receive 85% of their emissions allowances free of charge in 2012, a figure that will drop to 82% a year between 2013-2020.
This means airlines will have to buy 15% of their allowances next year, amounting to €380m. Aviation represents 3% of annual greenhouse gas emissions in the world.
"At current market prices these free allowances represent more than €20 billion over the decade," said EU climate action commissioner Connie Hedegaard. "With these potential revenues, airlines could invest in modernising their fleets, improving fuel efficiency and using non-fossil aviation fuel," she said.
The actual cost for airlines should be as low as €4 for a return trip. But the European Commission said nothing stops airlines from passing on the cost of the free allowance to customers, which could amount to €24 for a ticket.
It is up to the airlines to decide whether to bill passengers for the extra cost, the commission said.
The environmental group WWF welcomed the measures announced by Brussels, as "an important step in pricing carbon pollution caused by the aviation sector" even though most of the allowances will be handed out for free. "This is a modest but important start in reducing international aviation emissions," said WWF climate policy officer Sam Van den plas.