Easy! Tell the EU not to be so damned stupid and pay nothing – end of “problem”
British Airways, Qantas and other airlines are calling on governments to find a swift resolution to a political dispute over the European Union’s carbon scheme, because the deadlock may create competitive distortions.
Since the start of 2012, EU law obliges all airlines using EU airports to be included in the EU Emissions Trading System (ETS), the 27-nation bloc’s main policy to fight global warming as it caps emissions on over 11,000 power and industrial plants.
But the scheme, which now puts the cost of carbon on an airline’s balance sheet potentially pumping up fares, has drawn ire from major foreign emitters such China and the United States.
China this week banned its airlines from taking part in the scheme and threatened retaliatory action against the EU if it continues to calculate the carbon cost over the whole flight, not just within Europe.
A group of 26 countries including Russia, India, China and the United States plan to meet in Moscow on February 21 to discuss a plan of action.
But airlines and trade groups warned the row will create a competitive imbalance, with some airlines paying millions of dollars for their annual carbon costs and others not.