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MEPs vote to tighten emission limits on aircraft

Published 04 October 2007 - Updated 03 October 2007
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Lawmakers in the Parliament's Environment Committee have voted in favour of capping CO2 emissions from international flights starting in 2010, a year earlier than originally foreseen. They also suggested further tightening the overall cap on emissions, in a move which the airline industry described as "disastrous".

The Parliament's Environment Committee gave overwhelming support to Commission proposals aimed at limiting CO2 emissions from planes, backing the report by MEP Peter Liese (EPP-ED, Germany) by 50 votes in favour, none against and one abstention. 

Under the text voted upon by MEPs on 2 October, all flights would be included in the EU's carbon trading scheme as of 2010, including international flights connecting with non-EU countries. This is one year earlier than the Commission had initially proposed.

MEPs also voted to require auctioning for half of the pollution permits that are to be issued under the scheme, in order to avoid airlines making so-called 'windfall profits' when passing on the costs to air travellers. The Commission initially recommended that only 10% of permits be auctioned.

The total emission cap was set at 75% of the average emissions recorded by the airline sector between 2004 and 2006. Again, this is more stringent than the Commission had originally foreseen. In its first draft, the EU executive suggested calculating the cap as representing 100% of emissions recorded during that period.

And under another provision, airlines would need to buy two pollution credits for every one they wish to use for their own sake, in order to take account of other gases emitted by airlines, such as NOx, which have a higher global warming potential than CO2.

Positions: 

Commenting on the adoption of his report, MEP Peter Liese said that something needed to be done about the potential windfall profits airlines could make from the scheme, as was the case in other sectors included in the EU-ETS. "Electricity companies had received all CO2 certificates free of charge and would still increase prices. We can avoid this by a higher percentage of mandatory auctioning."

However, he was not satisfied with the tightening of the overall cap at 75% of average emissions recorded in 2004-2006. "That may be nice from an environmental point of view, but it is not feasible technically and would harm the competitiveness of EU airlines. So we have to amend our position for the plenary vote", said Liese.

The Greens were upbeat after the vote, saying MEPs "succeeded in significantly improving" what they described as a "weak proposal from the European Commission". Caroline Lucas, the rapporteur for Parliament's earlier opinion on aviation and climate change, welcomed the provision to limit airlines' capacity to buy pollution credits from other sectors such as chemicals or steelmaking once aviation is included in the scheme. 

But the overall tightening of the cap was rejected as "disastrous" by the Association of European Airlines (AEA) which represents major carriers, including Air France-KLM, British Airways and Lufthansa.

Speaking to EurActiv, AEA communications manager Françoise Humbert said that the tightening would be "disastrous", especially for the Central and Eastern European countries that joined the EU in 2004, as it does not take account of the economic growth that is taking place there thanks to EU membership.

"These countries' connectivity has inevitably increased since accession," Humbert pointed out, adding that she hoped this could be rectified when the bill is voted upon in the parliament plenary later this year. She also questioned the scheme's viability with regard to WTO trade rules, warning that Europe could be "heading towards commercial conflicts."

However, this was not the view of environmental NGO Transport and Environment (T&E). "While it is somewhat reassuring that MEPs have strengthened the Commission's proposal, they have not gone far enough in tackling rising emissions from the sector", said João Vieira of T&E.

Delia Villagrasa of WWF added that other measures "such as a fuel tax and the end of VAT exemptions are also needed" in order to tackle the rising impact of aviation on the climate.

Next steps: 
  • 13 Nov. 2007: Possible first reading vote in Parliament plenary 
  • 1st Jan. 2011: Commission target date for aviation sector to start trading CO2
Background: 

In an effort to tackle aviation's small but fast-growing contribution to climate change, the Commission issued a legislative proposal in December 2006 to include the sector in the EU's emissions trading scheme (EU-ETS). 

The proposal involves imposing a cap on CO2 emissions for all planes arriving or departing from EU airports, while allowing airlines to buy and sell 'pollution credits' on the EU 'carbon market'.

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