European Union Caps Airline Emissions, Angers International Trade Groups

By Aaron Poehler

Published on July 01, 2008

A landmark agreement reached last week by the European Union to limit greenhouse gas emissions from aircraft has ignited controversy and protest from trade groups who question the legality of the Union's decision.

Under the terms of the agreement, all airlines arriving at or leaving from airports located within the EU would be subject to emissions caps and emissions credits trading rules intended to reduce airline emissions to 95 percent of 2004-2006 emissions levels by 2012.

Because the terms of the agreement mean that the restrictions would also apply to non-EU carriers, international trade groups such as the US Air Transport Association, the International Air Carrier Association, and the Association of European Airlines were quick to express displeasure with the decision. Following the announcement, the director general of the International Air Transport Association called the decision "crazy" and asserted that jurisdiction over international emissions standards should fall to the International Civil Aviation Organization, a United Nations body.

Airline industry lobbyists also indicated that any costs incurred by US airlines required to purchase emissions credits to operate within the EU would likely pass those costs on to consumers and that air carriers are already financially stressed due to the rising cost of aviation fuel.

Before taking effect, the emissions agreement must be approved in a European Parliament vote (currently scheduled for July 9) and ratified by the governments of the individual EU countries.

 

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