EU-ETS halt will not bring down air freight rates

Most European airlines are struggling to survive

Connie Hedegaard Emissions Trading Scheme EU

Air freight rates are unlikely to go down following the EU’s decision to halt the Emissions Trading Scheme, according to report from industry sources. EU commissioner for Climate Action, Connie Hedegaard, announced that she would temporarily exempt non-EU flights from paying in the EU-ETS for a year, until year end 2013. The move came after an ICAO meeting which pushed plans for an international scheme.  

While the stoppage in the ETS will be a financial crutch for non-EU airlines, it is unlikely that any cost savings will be passed on since many carriers are struggling to survive while others have added the cost to freight rates.