HONG KONG: Cathay warns of carbon tax distortions

Cathay Pacific Airways’ head of Environmental Affairs Mark Watson has warned that a plethora of regional environmental schemes to tax aviation for its contribution to carbon emissions will cause major market distortions. With a number of countries independently moving to tax aviation carbon emissions Watson warned that in the absence of a universal global scheme […]


Cathay Pacific Airways’ head of Environmental Affairs Mark Watson has warned that a plethora of regional environmental schemes to tax aviation for its contribution to carbon emissions will cause major market distortions. With a number of countries independently moving to tax aviation carbon emissions Watson warned that in the absence of a universal global scheme there could be “a plethora of competing schemes with significant overlap.” “The ETS is distorting the market and it is a huge burden, and if we have the same thing for other parts of the world it will be onerous and regional schemes will be very, very difficult.” He said the challenge for IATA is to outline how the industry will achieve its aspirational emissions targets. “We have these targets, we have these goals but how do we achieve them? IATA is working on filling the gaps and these are the big questions that have not been answered yet.”