An Update on the Carbon Emissions Trading Scheme

Margot Parker gives Promo News readers an update on the Carbon Emissions trading scheme which has just had its first reading and vote in the EU Parliament 13/11/2007. This trading scheme will affect promotional products transported by air and also the incentive travel industry and so will have cumulative impact on the promotions industry.

A very brave attempt by the EU to impose it's climate policy on other parts of the world has been welcomed by MEP's who voted to strengthen a plan to cap carbon emissions from aircraft flying to and from Europe. The proposal is the same as the existing carbon credit trading system that the EU uses to combat global warming and to meet its targets set out in the Kyoto Protocol. Under the current system, which exempted airlines, governments set carbon dioxide limits for producers of power, cement, fuels, pulp and paper. Companies must then purchase credits if they exceed those targets.

The new measures, approved by the EU Parliament, drew great criticism from the US government, saying any emissions trading system needs to be agreed on a basis of mutual agreements between governments. The EU believes the system would set an important precedent which could be copied by other countries. Under the draft proposal, which was approved in Strasbourg on November the 13th, all flights arriving or departing from Europe would be included under the European system for 2011, rather than from 2012, the date originally proposed by EU officials. Airlines would be allocated some permits for their emissions but would have to buy more than originally planned in an auction. In addition, airlines would have to buy more than other regulated industries to compensate for the more severe kinds of damage aircraft are thought to be causing when emitting greenhouse gases at high altitudes.

The EU Parliament's vote was a blow to the airline industry, which mounted a serious lobbying campaign against the legislation and which branded the move an ineffective regional move to tackle a problem which needs a global solution. The legislation presents a huge cost to the industry and to passengers, who would pay more for their tickets at a time when airlines are already experiencing rising costs to cover soaring oil prices. The other worry that European carriers have, is that the Emissions system will most probably have some impact on competition, if American, Asian and other carriers are not participating. The Legislation must still be approved by the EU Parliament in a further reading and by individual EU governments before it can become law.

Margot Parker, Consultant, EurocomConsult

margot@eurocom-consult.com

Share this page