Brussels, 27/07/2012 (Agence Europe) - The Association of European Airlines (AEA) is highly critical of the changes brought to the timetable for the EU's Emissions Trading Scheme (ETS). AEA is critical, saying that Connie Hedegaard, Commissioner for Climate Action, is changing the rules during the course of play, which is a strategic mistake as it could give fuel to the arguments used by third countries that refuse to bend to the emissions quota trading system. Also, some of the AEA's 33 members are already facing retaliation from non-EU countries, AEA points out.
Hedegaard's lack of fair-play. As the price per tonne of carbon continues to plummet on the emissions quota market, which runs counter to industry's use of clean technology, Hedegaard has suggested that the mechanism be improved. On Wednesday 25 July, she announced that a certain quantity of quotas should be put up for auction at a later date (see EUROPE 10663). The AEA challenges this approach, which it sees as an interventionist measure, when the commissioner had always presented the ETS as a market-based mechanism. “Intervening now is like changing the rules of the game which has already started”, AEA states with irony, following this up by saying that the aviation sector needs legal stability. By revising ETS, Hedegaard would strengthen the feeling that the ETS is first and foremost a levy rather than an environmental initiative.
Coalition of the unwilling. According to AEA, the announcement could not come at a worse time. The ETS “coalition of the unwilling” of 17 third countries will meet in Washington on 31 July to discuss possible action against the emissions quotas trading scheme imposed on world aviation. Athar Husain Khan, AEA acting Secretary General, said: “The declarations of Commissioner Hedegaard might have further impact on the negotiations on a global level. (…) The fact that the Commission now wants to artificially manipulate the price-setting mechanism of ETS gives these non-EU States even more arguments”. He went on to emphasis that there is a great deal at stake and that the decision-makers must realise there is a threat.
Retaliation well and truly present. AEA members have noted retaliation measures, which always give rise to the fear that there will be a trade war if a concerted solution is not reached internationally. In addition to the threat that Beijing might suspend contracts with Airbus, there are daily complications for European airlines - for example, the Russian refusal to issue over-flight permits, or to prevent increased capacity, by preventing the largest planes from landing. (MD/transl.jl)