Fuel Tax, Emissions Trading Scheme Proposed

On Tuesday, the European Parliament discussed the possibility that airlines would soon be required to pay a tax on jet fuel as part of a pilot program aimed at combating greenhouse gas emissions.

Reuters reports the parliament also gave its support to proposals by the European Commission to include airlines in its emissions trading scheme, which requires industries to trade for rights to emit carbon dioxide.

The proposal is aimed at bringing airlines into accordance with standards set by the Kyoto Protocol -- which does not cover international aviation. Supporters say airlines should be bound to the agreement anyway, as emissions from jet exhaust are projected to climb in the next several years.

To prevent airlines from buying up trading rights from airlines,  the parliament suggested setting up an airline-specific trading system on a trial basis -- as a way to insure airlines work within the industry to reduce greenhouse emissions. Airlines would also be limited by the number of permits each carrier could purchase.

"A separate, closed system for aviation is crucial at the very least as a pilot scheme," said parliament member Caroline Lucas, who sponsored the resolution.

The parliament's vote on the matter -- in which a majority of lawmakers voted in favor of adopting such regulations -- carries no legislative weight... at the moment.

It IS considered a signal of support by EU lawmakers, however, for future environmental regulations on airlines... which is likely not only of concern to European airlines, but for those across the pond, as well.

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