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Thu, Jun 09, 2011

EU Staunchly Defends Airline's Inclusion In Emissions Plan

Hedegaard: "We Do Not Intend To Back Down"

The Climate Commissioner for the Eurpean Union is steadfast in his insistence that all airlines regardless of registration be included in the EU's carbon emissions plan set to go into effect January 1st, 2012.

The plan to require non-EU-flagged airlines to participate through the purchase of carbon credits has drawn harsh fire from those carriers, and was a topic of much discussion at the recently-concluded IATA general meeting in Singapore.

Dow Jones Newswires reports that Climate Commissioner Connie Hedegaard has said flatly that the EU does "not intend to back down" despite threats of legal action by a group of U.S.-based airlines and trade sanctions on the part of the Chinese government. Airlines registered in EU member states worry that if all carriers are not require to participate, then they will be placed at a competitive disadvantage.

In a letter to Hedegaard, Airbus CEO Tom Enders indicated that U.S. Airlines have said they could possibly take out their frustration over the requirements on his company. U.S. airlines have "clearly demonstrated they will not shy away from retaliatory measures," and Airbus could be a target, he wrote.

The plan requires airlines to reduce emissions or buy carbon credits to allow them to exceed emission targets. Hedegaard said airlines could pass those costs on the the passengers in the form of higher fares, but said the plan is a "pollution ceiling," not a tax.

FMI: http://ec.europa.eu/dgs/clima/mission/index_en.htm

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