Sunday, February 19, 2012

Emissions Trading Scheme

EU ETS is the European Union and Emissions Trading Scheme.  According to The European Commission was launched in 2005 it is a way to limit greenhouse gasses.  Emissions are given off in factories and power plants.  Each airline is required to keep record of emissions given off for each flight and turn the information in at the end of the year.  Every airline is given an allowance to cover, but if they go over they are fined heavily.  The EU ETS not only effects aviation in a major way, but covers all businesses in Europe.  Carbon Trust states "it covers 45% of EU emissions, including energy intensive sectors and approximately 12,000 installations".  This will have a large impact on aircraft flying to Europe from a money standpoint.  Airlines for America (A4A) estimates it will cost U.S. Airlines between  $1.3 and 3 billion by 2020.

The US is upset about the implementation of the ET ETS because it has been a "diversion of ICAO's energies".  US among other countries are trying to work with the EU to come together in coming up with something that is not so significant.  On November 2nd the US joined in passing a resolution in ICAO that approved opposition to the ETS.  21 countries including China, India, Japan and the United States opposed the application of the ETS to their airlines.  The US government is trying to fight with other countries in court, while trying to come in the middle with the EU to come up with a solution.  In 2009 the Airlines of America used the EU claiming that ETS is a violation of customary international law.  


According to Centre for Aviation ICAO is developing global framework for market based measures.  Pretty much no one is happy with the current EU ETS, ICAO is in the middle of it and has to come up with a solution to get the majority in agreement.  The Centre of Aviation states "The technical study will be completed by the end of this month and ICAO’s work in 2012 will be dedicated to the identification and development of a framework for market-based measures and a global scheme."  


My response to the EU ETS is a little over board.  Too think that will cost billions (over years) all for something that can not be prevented.  It says something when 21 countries are opposed to the ETS.  I feel like its a scam for the EU to get money.  It would be different if we had a solution to get rid of the emissions but technology has not got that far yet.  I think the EU just needs to sit back and relax and realize how big of an impact this will have not only on the world airline industry, but also businesses and factories who this will affect as well.


I have mixed feelings on how ICAO should handle global aviation emissions.  You cant treat every place the same because its not.  More emissions will be given off according to the location.  The hotter it is more emissions will be given off, so how can you treat Africa and the Middle East where it is hot pretty much all year long to somewhere cold.  ICAO is in a tough situation to handle global aviation emissions.  But I believe ICAO should implement greener flying.  With newer aircraft coming out giving out less emissions just let technology come and be patient, I believe ICAO should invest into alternative ways for fuel i.e algae, soybeans, corn.  We will never be able to get rid of emissions but investing into greener flying, it will make our world a cleaner place. 
  

4 comments:

  1. I agree completely. This is a "scheme" hence the term "scheme" in "ETS" in my opinion. What are the Europeans planning to do with the increase in revenue? Aside from the mutual benefit that everyone would receive (CO2 emitted in European airspace spreads across the world), what are the Europeans going to do with this extra income? In my opinion, the money isn't going to be put towards curbing of global warming.

    Furthermore, will the Europeans be just as willing to pay the extra fees required for flying into other country's airspace? It just has the appearance of an unilateral tax. Also, what of the countries who don't have a lot of wealth? The wealth factor alone could prohibit air travel to Europe. And this is all over an industry that accounts for 4% of CO2 emissions.

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  2. It is a good point the the ICAO is in a very difficult situation right now. It will be impossible to make everyone happy with this current situation. This also goes a little ways outside of their normal realm of business. It's also a bit peculiar how the EU will be collecting money for something that is a global issue...

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  3. I completely agree. It is amazing that the EU seems to think they should be able to profit off of a global issue without a clear application for the funds collected. I have sympathy for ICAO as they are like the parent that all of these nations are running to with complaints about the big mean unfair sibling. They really are in a tough place.

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  4. Being that it is named "scheme", I can agree with you when you say that the EU ETS is only in effect for a profit. Even though I believe it is a good idea, that could stand for much improvement in developing a new plan to possibly reduce emissions altogether, but that process would take years, time, and research. EU ETS should stop at this point and re-evaluate their program and how it is currently running.

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