Archived press release

Aviation and emissions trading - plans to be unveiled

19 December 2006

The European Commission is due to publish its draft legislative proposal for bringing aviation into the EU Emissions Trading Scheme (ETS) on Wed 20th December.

But Friends of the Earth warns that the anticipated scheme will only play a small role in tackling the growing impact that air travel has on climate change, and says that other measures are urgently required.

Friends of the Earth's aviation campaigner Richard Dyer said:

"Urgent action is needed to cut soaring emissions from air travel. But bringing aviation within the EU Emissions Trading Scheme will only have a small impact, and must be part of a package of measures. This must include ending tax breaks enjoyed by the industry and abandoning airport expansion plans. Our targets for tackling climate change are unlikely to be met unless we urgently tackle rising emissions from planes."

What is the Emissions Trading Scheme

On January 1st 2005, the EU Emissions Trading Scheme came into force [1].

Under the scheme, power stations, refineries and heavy industry across Europe, accounting for approximately half of EU carbon dioxide emissions, were given a limit on how much carbon dioxide they could emit. Participants in the scheme need to hold sufficient carbon dioxide permits to match their levels of pollution. Butcompanies which do not have enough at the end of 2008must pay stiff fines or buy spare permits from companies which have managed to reduce their emissions.

The EU ETS has been criticised because member states have been over-generous with the number of pollution permits that have been issued.

ETS and Aviation

Concern about the rapid increase in air travel, and the impact that it will have on climate change is growing fast. For example, in October the Environmental Change Institute at Oxford University warned that it will be impossible to meet the UK`s 60 per cent carbon reduction by 2050 climate target without curbing aviation growth.

Governments, and many within the aviation sector have acknowledged that the growing impact aviation has on the environment will have to be tackled. But they oppose actions such as restrictions on the expansion of airports and calls to make aircraft pay duty for the fuel they use. Bringing aviation within the EU ETS is seen as the most acceptable option for them because it will have a relatively small impact on the industry while giving the illusion that the issue is being addressed.

The soon-to-be announced plans are the start of the legal process to bring the sector into the existing EU ETS - but it isn't expected to come into effect until 2010 or 2011.

There are various legislative and political hurdles to overcome before it can be introduced, including a potential legal challenge by the United States.

Under the scheme, each airline will have to `pay' carbon permits for the carbon dioxide produced by their flights. Most of their permits will be given for free, but they will have to buy extra from other airlines or other industries within the ETS if they want to pollute more.

What Friends of the Earth thinks the announcement will say

There has been a great deal of speculation about the ETS announcement and a number of `leaks'. The most likely scenario is that the announcement will include:

Geographical coverage: It had been hoped that all arriving and departing flights from EU airspace will be covered by the scheme. But recent reports say that flights to and from countries outside the EU may not be initially included following pressure from the US.

'Cap' (or emissions profile): The cap is likely to be set at 2004/6 levels and will run from from 2011-2023. This means airlines will have to buy permits from other airlines or industries equal to the amount of pollution over 2004/6 levels. In other words the cap will not require emissions to decrease.

Allocation method: 90 per cent of the permits will be handed out free in the 1st period 2011-2015. 80% will be free for the 2nd period 2015-2019, and 60% for the 3rd period 2019-2023. The remainder will be auctioned.

Baseline (or starting point for emissions reduction): average of 2004-2006, each year between 2011-2023 airlines will be allocated (via grandfathering and auctioning) permits to cover an average years emissions between 2004-2006

What does Friends of the Earth think?

Friends of the Earth supports bringing aviation with the EU Emissions Trading Scheme, but it is only a small part of the action required to tackle the growing impact of air travel. Specifically:

• We need action now - aviation will not be part of the ETS for a number of years and EU aviation emissions are likely to increase by a further 25% from now before ETS even comes into effect.

• The effectiveness of the proposals are likely to be weakened further by member states and pressure from US.

• It is likely to have little effect on emissions for a long time because too many `free permits will be issued and the price of carbon is likely to be low in the short term.

• The wide geographical coverage of the ETS is welcome

• The recognition that additional action to address the non-carbon dioxide CO2 impacts [known as `radiative forcing'] is necessary is also welcome.

Friends of the Earth is calling for other UK measures to tackle the impact of aviation. These should include:

• Annual Increases in UK Air Passenger Duty (APD) - the modest increase announced by the Chancellor was a welcome first step, but an annual escalator is needed .

• Introduction of fuel tax on domestic flights and between the UK and other EU countries

• VAT on air tickets

• abandon plans for new runways

• an open and honest Government approach about the scale of the problem and the measures required if climate change is to be tackled

• include all aviation emissions within legally binding UK climate change targets. Through The Big Ask climate campaign, Friends of the Earth has led calls for a new law requiring annual cuts in UK carbon dioxide emissions. The Government recently announced that a new law would be introduced and is consulting on the details. (see: www.thebigask.com)

A Friends of the Earth briefing on aviation and climate change can be found at:
www.foe.co.uk/resource/media_briefing/alexanders_first_test.pdf (PDF)

Aviation is the fastest growing source of carbon dioxide in the UK

• Carbon emissions from UK aviation increased by 11 per cent in 2004 alone [2] and are estimated to increase four fold between 2000 and 2050 [3].

• Aviation emissions are estimated to have between two and four times the climate change impact of carbon emissions alone due to complex chemical reactions at altitude [4].

• There is no prospect of a significant technological breakthrough that will reduce aircraft emissions. Gradual improvements might manage 1.2 per cent per year reduction in emissions [5]. But this is inadequate to counter the current growth in passengers of 6.4 per cent per year [6].

• Oxford University recently concluded [7] that it will be impossible to meet the UK`s 60 per cent carbon reduction by 2050 climate target without curbing aviation growth.

• Recent research by the respected Tyndall Centre for Climate Change Research [8] found that a more ambitious 90 per cent cut in emissions from 1990 levels by 2050 - and around 70 per cent by 2030 - is necessary. Tyndall also warned that aviation could account for all of this target within 30 years [9]

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Published by Friends of the Earth Trust