Airlines, Governments Continue To Protest Unilateral Imposition Of EU-ETS

The head of the EU's climate commission is continuing to downplay the costs associated with the imposition if the Emissions Trading System it implemented in January, saying that on a per-passenger basis, it's less than a cup of coffee purchased at the airport.

Climate Commissioner Connie Hedegaard said in an interview with the French newspaper Les Echos that the tax per passenger on a flight from Beijing to Frankfort would be about two Euros, or about $2.60 at current exchange rates. Hedegaard said as the debate becomes more shrill, it is important to keep things in perspective.

The EU-ETS has been the subject of protests by governments including the United States, China, India, and Russia, as well as deep concerns expressed by Airbus about a loss of business over the scheme. China has already suspended an order for some A380 aircraft due in part to the imposition of the tax. Hedegaard told the paper that "We, as Europeans, of course cannot let ourselves be swayed by such threats."

The two-euro figure given by Hedegaard to the paper was much lower than previous commission estimates, which ranged from just over $5 to $31.50 depending on the route. The EU insists that the carbon tax will result in carbon emissions dropping some 20 percent by 2020.

FMI: http://ec.europa.eu/climateaction/eu_action/index_en.htm