Multiple nations sign protest, declare actions against EU ETS

Several countries, including China and the US, have joined Russia in signing a joint declaration against the European Union’s Emission Trading Scheme (ETS) carbon tax, which took effect Jan. 1 (ATW Daily News, Dec. 22, 2011).

The declaration was signed at the Moscow international conference by Armenia, Argentina, Republic of Belarus, Brazil, Cameroon, Chile, China, Cuba, Guatemala, India, Japan, Republic of Korea, Mexico, Nigeria, Paraguay, Russian Federation, Saudi Arabia, Seychelles, Singapore, South Africa, Thailand, Uganda and the US.

China has formally banned its airlines from participating in the scheme without government approval (ATW Daily News, Feb. 21).

The declaration also listed several retaliatory measures that included filing a complaint with ICAO, prohibiting airlines from participating in the EU ETS, mandating EU carriers to submit flight details and other data, assessing whether the EU ETS is consistent with the WTO agreements, and reviewing bilateral air services agreements. Other countermeasures include suspending negotiations that enhance operating rights for EU airlines and imposing additional levies on EU carriers.

It also gives other countries the latitude to create other retaliatory measures in compliance with their own legislative bases.

Russian deputy minister for transport Valeriy Okulov said Russia is planning to prohibit its local carriers from paying for emissions. The declaration could pass in the first half of 2012.

Okulov also said that Russia could reinstate overflight fees on routes over Siberia. The fees were introduced by the Soviet Union in 1986 to compensate for traffic that Aeroflot lost to foreign carriers. The payments were made part of bilateral air services agreements between member states and the Russian Federation. In 2006, the EU and the Russian Federation agreed to phase out costly Siberian overflight fees by 2013 (ATW Daily News, Nov 23., 2006).

Discuss this news 25

22 Feb20:19

Is the EU going to get the

By Monnides

Is the EU going to get the message, almost every countries outside Europe is against this TAX.

22 Feb20:41

I am unsure whether to laugh

By Jeff Gazzard

I am unsure whether to laugh or cry at the list of big hitters (?!) above who have signed up to a wishlist of risible "maybes" if the EU dares to keep enforcing its aviation ETS law. Some of these nation's air transport activites into and out of the EU's 27 Member States are under the threshold of the scheme, so are exempt. There's nothing quite so pointless as threatening retaliatory action against a scheme you are not even in!

Time for a reality check to offset the notion that the entire aviation industry is a collection of anti-environment ETS-refuseniks. They aren’t: there are already a significant amount of global airlines in full compliance with the EU Aviation ETS regulations.

In fact, “significant” in this case means 100%, as every single airline that flies in and out of the EU has already registered under every aspect of the ETS with their respective regulator in each EU member state; they have met every deadline along the way; and many are active in carbon markets. They have effectively already surrendered.

And here is a snapshot of how ticket prices are already being impacted:

• Etihad Airways, Abu Dhabi's carrier, has increased the fuel surcharge on all its flights to Europe to counter the costs of the EU's Emissions Trading Scheme by USD$3 per passenger for flights into and out of Europe and 0.03 cents per kilogram for cargo shipments.
• Delta Air Lines, American Airlines, United Continental and US Airways say they have already added a $3 surcharge each way on tickets for flights between the United States and Europe
• ryanair introduced a 0.25 Euro levy per passenger per flight from 17th January to cover its’ ETS costs
• Air France/KLM, British Airways and Lufthansa have each added ETS costs to ticket prices via an increase in their existing fuel surcharge although the actual amount is a little opaque
• many other airlines, such as Thai Airways, have already been buying carbon permits, taking advantage of the current record low prices of around 7.9Euros per tonne of carbon.
• and earlier this month, Qantas said it would raise fares by A$3.50 ($3.77) per passenger each way on flights to London and Frankfurt, to cover the cost of the EU ETS.

These are low, low pass through levels that will not bring about the collapse of air transport as we know it! Now call me naive but this is compliance, is it not? It is sad but true that all the countries meeting in Moscow later this week appear simply to want to bring about the complete collapse of the EU ETS, nothing more, nothing less.

We know today that growth in global aviation fuel use and emissions through to 2050 unfortunately outpaces the very best that airframe/engine technology, improved ATM systems and smart operational techniques have to offer. And this includes the rather witless promotion of unsustainable biofuels as part of the industry’s PR-led attempt to manufacture consent for unlimited growth. They have nothing to offer but a high carbon future. This is not a destination we should all be hurtling towards at 39,000 feet and 500 miles per hour.

The EU rightly continues to stand firm to protect the integrity of the aviation ETS which clearly should be developed as the global market-based element in a worldwide programme to control and reduce damaging climate change emissions from civil aviation.

Jeffrey Gazzard
Board Member
Aviation Environment Federation
LONDON

22 Feb20:59

It would be interesting to

By skyward

It would be interesting to know who signs your paycheck, Jeffrey.

22 Feb21:20

The Ryanair example that

By charles

The Ryanair example that Jeffrey Gazzard mentions is very apt and sums this arbitrary tax up appropriately.
"Eco-Looney Tax"

22 Feb21:25

Jeffrey, The EU Aviation ETS

By AIRLiNE ENGINEERING RETIREE

Jeffrey,

The EU Aviation ETS is nothing but another European left-wing tax scheme. Let is all hope that the actions begun in Moscow lead to the swift collapse of the EU ETS!

22 Feb21:31

Mr. Gazzard, No matter the

By Anonymous

Mr. Gazzard,
No matter the supposed loftiness of your position or title, no matter the length & breath of your carefully crafted posting, there is no hiding that this is still nothing more than a seemingly pathetic if not desperate money grab by the EU. No amount of pompous, self-righteous, sanctimonious bluster (feigned or otherwise) will win hearts & minds to your point of view. Your throwing down the gauntlet will not help to make skeptics "see the light" about being more environmentally responsible. You can go ahead laugh and/or cry as you wish. Rest assured the rest of us will be laughing in turn as this all ends in tears for the EU.

22 Feb22:08

Keep drinking the kool aid

By Anonymous

Keep drinking the kool aid Jeffrey! You have been living in Europe for too long. You obviously have been defending this program for way too long, also. It is a tax-period! If it is not nipped now, whether certain airlines or required to participate or not, who knows what great revenue ideas the EU will have next to support its socialistic endeavors that will include all airlines from any country. Do you not get it.........it is a bloody slippery slope!

23 Feb01:19

the question dear Jeffrey, is

By PhilLC

the question dear Jeffrey, is what will the EU do with this money? If they are going to be planting trees and helping save the Amazon jungle, few would have an issue. Can you confirm that this is what will be done with the money?

and what about Germany's additional 'environmental' tax? where is that money going?

the issue is one of principle and its good that even countries representing smaller aviation markets are getting involved in the discussion.

the whole issue of emission trading is a mega scam in my opinion - we should be reducing emissions - full stop - what's all this mumbo jumbo about buying and selling the right to pollute! its a joke.

23 Feb02:07

It is idiotic! The airlines

By gdcurler

It is idiotic! The airlines have no problem charging $50 per extra bag but won't pay $1.50 per passenger ETS???
It is all about politics and corporate ego. Shame on the US and its followers.

23 Feb02:26

I guess that any funds raised

By Nick Jones

I guess that any funds raised by this stupid scheme will be passed to the Greek government to help settle their debts!!

As for the comment above, climate change is a myth..................period!!

23 Feb02:28

@JefferyGazzard: I dunno

By phobal

@JefferyGazzard:

I dunno whether to laugh or cry my self: you never seemed to explain how this ETS actually benefits the government more than it benefits bureaucrats, the government, and agencies such as yours that manufacture dissent.

23 Feb02:29

er, "benefits the environment

By phobal

er, "benefits the environment more than the government...."

23 Feb03:37

The only platform for a

By Global Passenger

The only platform for a global ETS is ICAO - and that seems to be the global understanding of all involved, except, obviously, the EU Commission.

23 Feb03:40

So, Messr. Gessard, where

By Anonymous

So, Messr. Gessard, where EXACTLY is this money going to??? That is the big question. I think more people would be able to swallow this pill if they knew what the money was going to. As it is, the EU has been vague, at best, as to how exactly the money will be used to benefit the environment. Will it be earmarked for subsidizing research for better fuel efficient systems at Airbus, Boeing, Bombardier, P&W, Rolls Royce, GE, etc? Will it be used to make EU air navigation more efficient (Paris is a PERFECT example of incredibly fuel inefficient system)? Tell us, WHAT WILL THE FUNDS BE USED FOR?!?! At the moment, it just seems like another tax on an already heavily taxed system. And what is the answer to your doom-&-gloom 2050 scenario; should we all be back on boats, trains, or better yet, horseback? Be reasonable, this new tax will NOT bring about your Uforia any sooner.

23 Feb03:55

I understand that Mr. Gazzard

By Global Passenger

I understand that Mr. Gazzard had to reply in this form and with his arguments.

However, when it comes to fees and charges that airlines are levying on their passengers, those claimed to be government ordered fees or other cost related fees, his arguing gets questionable.

What about fuel surcharges? All, repeat ALL airlines, keep increasing their fuel surcharges as soon as the price for crude oil is increased. But when crude oil gets cheaper, fuel surcharges are kept at the previous level, to be increased again when the next crude oil price hike comes along. So, frankly, that's a rip-off of passengers and cargo clients. And NO consumer protection group anywhere is getting down on this.

These new "ETS" fees now charged by some airlines - how were they calculated? On a full-cost basis, i.e. disregarding the "free allotments" granted each carrier, so they will not have to pay anything into the ETS for at least the first nine months of each year? Or has this been included in the airlines' calculation?

Oh, by the way, global aviation is contributing something between 2.0 and 3.5% into global emissions. Have cruise ships been included?? One of those big 4,000 passenger cruise ships running its engines permanently while in a harbor like Hamburg in each 24-hour-period is producing the same amount of emissions like 100,000 cars in the streets of Hamburg during a whole year.

And, this ETS is ultimately designed to cash in money for the EU fiscal authorities - otherwise known as a tax, not a fee. Simply proven by the fact that the moneys to be collected will not be used for environmental projects, but simply added to the EU budget.

And, finally, the EU Commission had ordered EU member states to enforce the use of E10 biofuel to protect the environment. A scientific study, just published, has revealed that this E10 biofuel does more damage to the environment than "basis" genuine fuel - besides increasing food prices on a global basis.

Sorry, but the only body for any global scheme to institute any ETS for aviation is ICAO, not the EU Commission bureaucrats in Brussels.

23 Feb04:36

And who shall suffer at the

By Ray

And who shall suffer at the cost of this cosmetic idea that feeds the vanity and egos of the EC bureaucrats in Brussels? The airlines. It is bad enough that the EC cannot even get their views straightened of such issues as EC261but the continue against ETS scheme which at the bottom line is suspect to do nothing more than enrich pockets and boost already over-inflated egos of those bureauocrats at the expense of an industry which the EC already burdens with so much restrictions but does not shy itself from availing of its benefits is nothing but gross obscenity.

23 Feb04:55

perhaps, some portions of

By Anonymous

perhaps, some portions of this particular tax goes to Aviation Environment Organisations? Ie. More funding for them? Who knows....My opinion is, anything affecting international civil aviation should be discussed (and agreed) with ICAO first...One day, I hope South Asia, Russian, USA and African countries should impose similar tax (only) to EU airlines...

23 Feb06:52

It is interesting that the

By Ordinary Joe

It is interesting that the sole voice in consistent favour of ETS in this Forum has been the member of a British Quango whose salary depends upon the notion of a self-appointed guardianship of the ‘aviation environment’. It is striking that aviation professionals here have not exhibited that same inclination.

The very principle of ETS depends upon a notional ‘right’ of the EU to exercise transnational authority and extraterritorial jurisdiction. Any nation or group of nations can of course claim to exercise Extraterritorial Jurisdiction.
However for this to be transmuted beyond the realm of claim or fantasy; other than by exercise of force; it must be agreed with the relevant legal authority of that external territory or territories, or with a legal authority responsible for both, perhaps the UN?

The world witnessed the fighting abilities of the Europeans in two world conflicts, and the need for the US to decisively end their little conflict and bail them out of their financial woes afterwards. So an exercise of force by the EU in pursuit of ETS is unconscionably, to them at least! Then of course there remains economic muscle, of which they are likewise deficient.

So then, what is left?

They must simply to pull down the shutters over this EU ETS affair, and slink off into the night.

23 Feb07:46

That is all very well,

By A. Pilot

That is all very well, Jeffrey. However, environmentalists take a completely blinkered view as is obvious from your post. I would ask you, then, where does all this money go? Does it, for instance, get invested in companies who research 'real' alternatives to the combustion engine? Are you reforesting Europe to levels pre-middle ages? Or, as we all suspect, is it just going into the coffers of the EU to pay overinflated salaries and dubious projects which have nothing to do with the environment. And please don't mention windfarms because they have been an expensive white elephant which has ended up costing the consumer AND the tax payer a fortune due underhand agreements WRT usage or lack thereof.

No-one knows better than other governments that these taxes are a con. The net effect is to push up the price of every flight for no environmental benefit what so ever; it stifles business and growth and the free movement of cash, all things we need right now.

What is more, you (environmentalists) base your reasoning on very tenuous evidence and bring in legislation which the general public is burdened with for years to come. A fine example is that of basing of road tax on CO2 emissions. It has been discovered, after all the hype about CO2, that in fact water vapour is a far more damaging greenhouse gas than CO2 by a considerable margin. Are you and Gordon Brown going to reimburse us all those tax £s and start charging the hybrids double to recuperate?

I don't disagree that we need to be conscious of what we are doing to our planet but you would have much more sympathy and backing if you could prove that these taxes were actually getting results WRT advancements and new technologies.

The trouble with this, of course, is that this is self defeating: where would your salaries come from and where would governments find a cash cow if fusion was perfected tomorrow? If I came up with a clean pulse engine in the morning and transformed aviation how would you justify your job then?

Environmentalism has become a huge industry and like every other industry it seeks to make money by feeding of other sectors and hoodwinking the common people that it is necessary (which it is) but then not giving very much back. As I said, if it was taken to its logical conclusion, it would be the victim of its own success.

23 Feb11:53

I AM NOT AGAINST OF EU ETS,

By DILIP KUMAR JHA

I AM NOT AGAINST OF EU ETS, BECAUSE AIR LINES MAKE TOO MUCH CLOUD LINE ON EU. DILIP KUMAR JHA. THANKS.

23 Feb14:28

gdcurler, you missed the mark

By RK

gdcurler, you missed the mark entirely. This "SCHEME" is being opposed by practically anyone who is anyone soley on principle. It would be opposed at $1.50 the same as it is opposed at $20. The whole idea is a fallacy that has no merit, nobody says where the money is really going, it is simply a regressive tax by the EU in the misguided ruse as a carbon emmissions tax? Here in the U.S. the Obama administration "Cap and tax" scheme was wildly unpopular and was soundly and rapidly defeated. There is a parallel to the EU ETS Scheme.

Further, Brussels can continue attempts to rule the roost from their "lofty" EU perch, but plainly stated, this is not and will not work. How is Brussels International doing now that DHL is long gone for Leipzig? As is said over here, "there's your sign!"

23 Feb14:47

Mr. Gazzard's passion is

By FrankB

Mr. Gazzard's passion is actually to read his comments in the media, not the environment. He can't write original material, so he copies & pastes his diatribe into each media byte.

He was in a movie in 2007 called, "Should I really give up flying?"
Kind of makes you wonder what Jeffrey's real objective is or is he just Al Gore in disguise?

24 Feb08:16

What is the most

By Köktürkler

What is the most carbon-economic way of transportation? Is driving a bus accross Eurasia more carbon free way?

25 Feb10:39

Passenger transportation by

By Köktürkler

Passenger transportation by air is more carbon efficient than cars and busses. But EU does not collect carbon tax from road vehicles, does it? Besides, we know that for air cargo, fuel efficiensy is less than other ways. But should the carbon efficient passenger air transportation be punished?
http://en.wikipedia.org/wiki/Fuel_efficiency_in_transportation#US_Passen...

08 Apr08:46

It's a matter of opinion,

By Petr Liska, Dipl.Ing.

It's a matter of opinion, whether ecological tax on airlines is good or not.
What is sure MISTAKE of the EU is to declare it UNILATERALLY, without previous consent from other countries via negotiations in respective recognized int'l bodies: ICAO and WTO.
It took many years to change GATT into WTO and thus made int'l trade simplier. Unilateral action brings us back many decades (into the 50's or so) with trade bans, high taxes, in one term TRADE WARS...

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