NBAA and the General Aviation Manufacturers Association (GAMA) are closely watching developments at the International Civil Aviation Organization (ICAO) in Montreal involving the European Union Emissions Trading Scheme (EU-ETS). On Tuesday, GAMA president and CEO Pete Bunce said at the organization’s yearly press briefing that both associations are also working closely with the International Business Aviation Council on this matter.
Climate change policy
Despite the European Union’s decision to postpone enforcement of its Emissions Trading Scheme (ETS) for international flights until next fall, President Obama signed a bipartisan measure on November 27 that orders the U.S. Secretary of Transportation to prohibit U. S. aircraft operators from participating in the EU carbon tax plan.
“With final passage of this act, the President and Congress stand as one in declaring that the EU-ETS is an overreach, it’s wrong, and it won’t fly with operators based here in the U.S.,” said NBAA president and CEO Ed Bolen.
ETS is still in full force for all flights between airports in the 27 European Union states, and also in the so-called European Economic Area (also including Iceland, Norway and Liechtenstein) as well as Switzerland and Croatia. The European Commission has made it clear that non-European operators will still be required to complete the monitoring, reporting and verification (MRV) process for carbon dioxide emissions from intra-European flights. They will also be required to submit carbon credits covering these emissions. Legal opinion seems to be in agreement that the new U.S.
The “high level group” formed by the International Civil Aviation Organization (ICAO) to develop a global agreement on reducing carbon emissions from the air transport industry convened for the first time on December 12. The group aims to draft a plan for adoption at the next ICAO Council, scheduled for September and October 2013.
President Barack Obama closed the legislative loop on U.S. refusal to comply with the European Union’s emissions trading scheme (ETS) on November 27, when he signed S.1956, legislation that orders the Secretary of Transportation to prohibit U.S. aircraft operators from participating in the carbon tax plan. The legislation also calls for the government “to conduct international negotiations to pursue a worldwide approach to address aircraft emissions.”
The business aviation lobby broadly welcomed the European Commission’s sudden suspension of the application of its controversial emissions trading scheme (ETS) for flights in and out of the European Union (EU). The move seems to head off the immediate threat of a trade war with major powers such as the U.S., China, Russia, India and Japan but, significantly, ETS will still apply to intra-EU flights, regardless of whether or not the operators involved are based in the EU.
President Obama closed the legislative loop on U.S. refusal to comply with the European Union’s Emissions Trading Scheme (EU-ETS) on Tuesday, when he signed S.1956, a bipartisan measure that orders the Secretary of Transportation to prohibit U.S. aircraft operators from participating in the carbon tax plan.
The airline lobby has broadly welcomed last week’s sudden announcement by the European Commission that it would suspend the application of its emissions trading scheme (ETS) for flights in and out of the European Union. However, European airlines have protested the fact that the ETS will still apply to intra-EU flights, arguing that the exception poses an anti-competitive cost burden that most non-EU operators will not now have to carry.
The European Commission (EC) has backed down in the face of mounting political pressure, announcing that it will suspend its requirement for non-European Union aircraft operators to comply with its emissions trading scheme (ETS).
The European Commission has suspended the implementation of its emissions trading scheme for international flights in and out of the European Union for 12 months on the grounds that it now expects to see a deal on a multilateral global alternative at the next ICAO Assembly.