ICAO comes up with three ETS alternatives

An ICAO working group has narrowed down three options for an alternative plan to the European Union’s Emissions Trading System (ETS) for the airline industry, but nothing concrete is likely until next year.

ICAO comes up with three ETS alternatives

Senior European Union officials say they will not retreat from
enforcing obligations under the Emissions Trading System (ETS) that took effect in January. The law requires domestic carriers as well as any foreign airline landing in the EU to pay for their emissions under a cap-and-trade system.

A decision is expected shortly on how the EU will respond to defiant Chinese and Indian airlines that failed to meet a 31 March deadline to submit an annual emissions report to the European
Commission. A working group of the International Civil Aviation Organisation (ICAO) in Action Commissioner Connie Hedegaard
and other officials have said the EU would not retreat on the aviation ETS until there is an ICAO decision.

Non-compliant airlines face fines from EU member states, a spokesman for the EU executive said. For instance, maximum
fines in Germany would be €50,000 this year, rising to €500,000 next year, while in Britain, the fines would be €1,560 rising next year to €15,600.

The American aviation industry challenged the ETS law before the
European Court of Justice, contending that it applied extraterritorial regulations on airlines and violated the spirit of a 2004 ICAO call for to grapple with rising aviation emissions. The court on 21 December 2011 ruled that ETS did not violate international law or competition agreements.