British Airways chief criticises EU's emission trading scheme

19 Jul 2008

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Farnborough: British Airways chief executive, Willie Walsh, and other leaders in the aviation industry are continuing their criticism of the European Union's proposed emissions trading scheme claiming the proposals will financially damage airlines.

Speaking at a sustainable aviation conference at the Farnborough Air Show this week, Walsh said that though he was broadly in support of emissions trading, he had "serious reservations" about EU's proposals. "If implemented as it now stands, without a global solution for aviation in place, the scheme will lead to a significant competitive disadvantage for EU airlines, resulting in a loss of jobs and reduction in services as international passengers bypass European hubs," he said.

European airlines claim that EU's proposals could cost them €4 billion a year, at a time when the civil aviation industry is trying to survive global economic slowdown and high price of fuel.

It is estimated that the airline industry contributes 2 per cent of greenhouse gases, and this is predicted to rise to 3 per cent in the coming decades. The EU emissions trading scheme will come into operation  from 2011, and will require airlines to purchase permits for producing carbon dioxide.

Giovanni Bisignani, director general of the International Air Transport Association, has pointed out that because the scheme would penalise carriers based outside Europe, their was every likelihood of non-EU airlines filing lawsuits claiming it was unfair for the EU to tax non-EU airlines. He said: ''Instead of cleaning up the environment, this will create an international legal mess. States outside Europe are already threatening legal action. Why should a US carrier have to pay Europe for emissions over US territory?''

At the seminar Walsh outlined a number of strategies that BA was pursuing to reduce its carbon footprint, including developing alternative fuels and purchasing more fuel-efficient aircraft. He also said that a more efficient air traffic control network could reduce fuel consumption, particularly at perennially congested  airports such as Heathrow.

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