Aviation Industry
IATA chief: EU carbon tax tilting playing field
SINGAPORE - The aviation industry emits as much as about 600 million tons of carbon every year, and with more planes set to take to the skies, there's been a push towards creating a carbon neutral sector.
The initiatives include the European Union's emission tax on airlines, to trials and tests with alternative fuels.
The aviation industry has in fact, committed to reducing its carbon emissions by some 50 per cent by 2050, compared to 2005.
However, in recent months, the issue of the environment and aviation has suffered some controversy with a tax being imposed on airlines by the European Union.
International Air Transport Association director general Tony Tyler said: "Well, the situation with airlines inclusion in the EU ETS is very complicated, and it's complicated because governments see it as an infringement on their sovereignty to have the extra territorial tax imposed on them.
"Airlines, of course, also see this as a problem because it is introducing distortions into the market.
It's tilting the playing field and this is something that airlines find very difficult to live with.
"Airlines are now planning to fulfil their obligations under protest, but they will have to do that. But in some countries such as China, we see that the Chinese government has passed a law which prevents their airlines from taking part, so the Chinese airlines are really now in the forefront.
"And they are bravely going into the battle having to take the charge and they are having to make a decision -- do I comply with Chinese law or do I comply with European law?"
And while most industry players say that a global standard would be the best solution, they agree it will take some time to get all involved parties to agree to a standard.
In the meantime, airlines and aircraft manufactures understand there is a need for airlines to be not only efficient but also to source for alternative fuels.
Airbus Public Affairs and Communications SVP Rainer Ohler said: "I would say that 30 per cent of the fuel that we need for aviation in 2030 could be biofuel or alternative fuel."
According to IATA, between 2008 and 2011, nine airlines and several manufacturers performed flight tests with various blends of up to 50 per cent renewable fuel.
IATA said these tests demonstrated that no adaptation of aircraft was required to use renewable and that it can be blended with existing fuel.
In mid-2011, 11 airlines have performed commercial passenger flights with blends of up to 50 per cent renewable/bio fuel.
The airlines which performed these flights are KLM, Lufthansa, Finnair, Interjet, Aeroméxico, Iberia, Thomson Airways, Air France, United, Air China and Alaska Airlines.
Comments
Mr Gazzard above does a fine job himself of bemoaning in the finest but stale tradition of whining about how the ever-increasingly clean & efficient aviation industry is still somehow killing off an entire celestial body’s ecosystem. His minions are those who view air travel & air commerce as the realms of rich nasty ol’ capitalists, alas. Support and expansion, he insists?! Indeed — but NOT of some dishonest attempt to “save Earth”. The arrogance is from HIS small dark corner, not from an industry the likes of aviation which is bullied & pilloried & “picked on”, if you will, by leftist ChickenLittles & their fear-mongering puppets.
“Hubristic posturing” could somehow be added to Tony Tyler's comments above. An urgent reality check is needed to offset the notion that the entire aviation industry is a collection of anti-environment ETS-refuseniks. They aren’t: there are already a significant amount of global airlines in full compliance with the EU Aviation ETS regulations.
In fact, “significant” in this case means 100%, as every single airline that flies in and out of the EU has already registered under every aspect of the ETS with their respective regulator in each EU member state; they have met every deadline along the way; and many are active in carbon markets. They have effectively already surrendered. And here is a snapshot of how ticket prices are already being impacted:
• Etihad Airways, Abu Dhabi's carrier, has increased the fuel surcharge on all its flights to Europe to counter the costs of the EU's Emissions Trading Scheme by USD$3 per passenger for flights into and out of Europe and 0.03 cents per kilogram for cargo shipments.
• Delta Air Lines, American Airlines, United Continental and US Airways say they have already added a $3 surcharge each way on tickets for flights between the United States and Europe
• ryanair introduced a €0.25 levy per passenger per flight from 17th January to cover its’ ETS costs
• Air France/KLM, British Airways and Lufthansa have each added ETS costs to ticket prices via an increase in their existing fuel surcharge although the actual amount is a little opaque
• and many other airlines, such as Thai Airways, have already been buying carbon permits, taking advantage
of the current record low prices of around €7.9 per tonne of carbon.
These are low, low pass through levels that will not bring about the collapse of air transport as we know it!
Now call me naive but this is compliance, is it not? It is sad but true that all the countries meeting in Moscow later this week appear simply to want to bring about the complete collapse of the EU ETS, nothing more, nothing less.
We know today that growth in global aviation fuel use and emissions through to 2050 unfortunately outpaces the very best that airframe/engine technology, improved ATM systems and smart operational techniques have to offer. And this includes the rather witless promotion of unsustainable biofuels as part of the industry’s PR-led attempt to manufacture consent for unlimited growth. They have nothing to offer but a high carbon future. This is not a destination we should all be hurtling towards at 39,000 feet and 500 miles per hour.
The EU rightly continues to stand firm to protect the integrity of the aviation ETS which clearly should be developed as the global market-based element in a worldwide programme to control and reduce damaging climate change emissions from civil aviation.
Jeffrey Gazzard
Board Member
Aviation Environment Federation
LONDON
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