The International Air Transport Association (IATA) continues to oppose the European Community's Emission Trade Scheme (ETS). The IATA boss insists all parties should head to the International Civil Aviation Organisation (ICAO) instead, reports Amirah Ibrahim IATA's new chief Tony Tyler has called for the European Union to abandon its plans to include aviation in the European Emission Trading Scheme (ETU) from 2012. Speaking at the Greener Skies conference in Hong Kong, Tyler said the air transport industry is committed to its ambitious agenda to reduce carbon dioxide emissions. He reminded delegates that airlines, airports, air navigation service providers and manufacturers are committed to improving fuel efficiency by 1.5 per cent annually to 2020, capping net carbon emissions from 2020 with carbon-neutral growth and cutting net emissions in half by 2050 compared to 2005. "These are challenging targets. Airlines represent 2 per cent of global manmade CO2 emissions. This year that is estimated to be some 650 million tons of CO2 emitted while carrying 2.8 billion passengers and 46 million tons of cargo. By 2050, the industry aspires to carry 16 billion passengers and 400 million tons of cargo with some 320 million tons of CO2 emissions," Tyler was quoted by Air Transport World magazine. "Connections via hubs closer to Europe will have a competitive advantage. Think of it from the perspective of Hong Kong. A direct flight to Europe will be charged on its emissions for its entire journey. But a connection through the Middle East or other closer hubs will only be charged for the last leg of the journey. This is an unacceptable market distortion," Tyler said. Tyler added that the EU ETS will also lead to a layering of taxes. Failure to coordinate in a global scheme will lead to air passengers compensating for their carbon emissions several times over. "We already see it in Europe with the UK Air Passenger Duty and copycat departure taxes in Germany and Austria. All were implemented using the environment as the justification. But there is no guarantee that these will be eliminated when the ETS takes effect," Tyler said. On the other hand, the EC insists it has "no intention to amend its legislation" despite the legal challenge by the Air Transport Association of America and some of its members. The Civil Aviation Administration of China (CAAC) has joined with the Russian Federation's Ministry of Transport to denounce the EU ETS. "We need a global solution. All roads lead to ICAO. It is time for Europe to refocus on a Plan B that is centred on a global solution through ICAO," Tyler said. The European Commission claims that the issuing of free ETS allowances would enable aviation to invest 20 billion euros in clean technologies between now and 2020. "That is not the reality. The well-known fact is that airlines will be net purchasers of carbon emissions permits for the foreseeable future. The starting cost is $1.2 billion in 2012. To put that into perspective, the industry's projected 2012 profit is $4.9 billion. Aviation cannot afford expensive regional mistakes �êï all parties urgently need to get back around the table to agree to a global approach under the leadership of ICAO," Tyler said.
