Brussels, 26/09/2011 (Agence Europe) - Airlines, which will have to contribute to tackling climate change from 2012 through their participation in the EU emissions trading system (EU ETS), now know the amount of free quotas they will be allocated until 2020. The European Commission, on Monday 26 September, published the benchmark values which will be used to allocate greenhouse gas emission allowances free of charge to more than 900 aircraft operators (70% in the EU and 30% outside the Union) which applied for them. These include all airlines which have a considerable volume of activity to or from Europe (with the exceptions of airlines in developing countries).
Throughout the whole of 2012, these airlines will receive free quotas of 85% of 2004-2006 emissions (and for trading year 1 January 2013 to 31 December 2013, this will be 82%). Of the remaining allowances in each period 15% will be put up for auction and 3% set aside for new entrants and fast-growing airlines. The free quotas will be equivalent to 182 million tonnes of CO2 in 2012 and to 172 million tonnes in 2013 and successive years.
“With the benchmark values, airlines now have certainty on how many allowances they will receive for free each year up to 2020. At current market prices, these free allowances represent more than €20 billion over the decade. With these potential revenues, airlines could invest in modernising their fleets, improving fuel efficiency and using non-fossil aviation fuel”, said Climate Action Commissioner Connie Hedegaard.
For 2012, the 15% of quotas to be bought at the going rate for CO2 on the market will cost operators around €380 million, Jos Delbeek, Director at DG Climate, told the press. Airlines will be able to pass this cost on through ticket prices. The Commission believes that the effect on the cost of a transatlantic flight will be “limited”, somewhere between €2 and €12. Delbeek denied that this was an unjustified tax. “A tax is levied by a public authority. Here it is a way of limiting emissions that is being imposed on airlines. It will be up to them to get organised to make their aircraft more environmentally friendly. It is a market-based system, which will involve income and also expenditure for airlines.”
The advocate general is due to deliver his opinion on the dispute with the US air carriers association, which referred its case to the EU Court of Justice, on 6 October. In the meantime, discussions will continue this week and in November with ICAO, the International Civil Aviation Organisation. (AN/transl.rt)