EU Air Travel Emissions Trading Scheme Begins

German passenger carrier Lufthansa has moved ahead of many other airlines by announcing that, as a result of it joining the ETS (Emissions Trading Scheme) established in the EU, its ticket prices will increase.

Introduced on 1 January 2012, the Emissions Trading Scheme makes it compulsory for airlines to pay charges that reflect the CO2 emissions generated from commercial flights starting or ending within the EU. Carbon credits are being allocated to cover these emissions for the most part but, where additional emissions are produced, credits have to be purchased.

According to Lufthansa, the cost involved in joining the ETS equates to 130 million Euros a year. In a statement it explains that, in order to recoup these costs, extra passenger charges are the only viable way forward. These charges will be placed on top of the German carrier's fuel surcharge which, on 15 December, increased from three Euros to ten Euros.

Lufthansa's ticket increases won't be immediate, but they'll be implemented on a more gradual basis.

EU Emissions Trading Scheme

European Union officials are hoping that, with the aviation aspect of the EU Emissions Trading Scheme now in place, airlines will be incentivised to acquire more energy-efficient aircraft technologies, ultimately helping to reduce the impact of air travel on atmospheric greenhouse gas concentrations.

"Climate change is a global challenge", Deutsche Lufthansa AG executive board member Carsten Spohr explained in Lufthansa's statement on ETS, published at the very start of 2012. He continued: "This means we also need a global solution. The incorporation of airlines in the EU Emissions Trading Scheme means that European operators are now facing additional costs which will make flying within and via Europe more expensive for passengers. It will also distort competition and impact on the sustainability of the aviation industry if it proves impossible to implement with the competitive neutrality promised by policy makers.

"However, given the huge resistance at international level, it is unclear just how the situation will develop."

Air Travel ETS Charges

In related news, one organisation has already contested the arrival of air travel ETS charges on the scene. Speaking to Reuters, a spokesperson for the China Air Transport Association was adamant that the four airlines it represents - Air China Ltd among them - will simply not pay them.

"China will not co-operate with the European Union on the ETS, so Chinese airlines will not impose surcharges on customers relating to the emissions tax", CATA's Cai Haibo told the news agency.

See also:

EU Warns Airlines Over EU Emissions