2009 Issue 1 - Sabre Airline Solutions

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50 CLIMATE CHANGE Beginning in 2012, all airlines operating to Europe will be required to report CO 2 emissions and will have emissions limits. <strong>Airline</strong>s need to prepare now to ensure they comply with the new legislation. By Peter Berdy | Ascend Contributor
The alarm of global warming and climate change has taken a top spot on the European Union’s agenda for several years. The challenge has been heightened further by the need to upgrade the European Union’s power grids and energy infrastructure to replace aging electricity and gas networks in the face of soaring increases in energy demand. While some of the money from new E.U. directives will be spent on renewable energy sources, most will be spent on electricity produced by fossil fuels. This raises concerns that Europe is locking itself into decades of dependence on non-renewable fuels rather than laying the foundation for a lowcarbon future. Against the background of the economic slump, the European Parliament passed a new climate and energy package last December including a revised emissions trading system, or E.U. ETS. In addition to setting tougher targets to lower greenhouse gases, for the first time, the European Union also included aviation in E.U. ETS. e.u. emissions changes The recent legislation passed by the European Union created legally binding targets for the year 2020: Cut greenhouse gas emissions by 20 percent, Establish a 20 percent share for renewable energy, Improve energy efficiency by 20 percent. It also: Confirms a 10 percent target for renewable energy sources in transportation, Fixes criteria for biofuel sustainability to support biofuels that have no negative environmental impact, Reconfirms the European Union’s commitment to move to a 30 percent reduction in emissions if other developed countries make similar commitments. The idea behind tightening the emissions cap over time is that it should lead to a scarcity of emission allowances. (An allowance entitles a company to emit one ton of carbon dioxide or an amount of any other greenhouse gas with an equivalent global warming potential during a specified period.) This should drive up the price of polluting, which should then incentivize companies to invest in clean technologies that pay off within several years rather than continuing to purchase emissions allowances. emissions trading system E.U. ETS is the world’s largest greenhouse gas emissions trading system. It has been in place since January 2005, and now it covers more than 11,000 energy-intensive installations representing about 2 billion tons of CO2 emissions, nearly half of the European Union’s total greenhouse gas emissions. E.U. ETS is a “cap-and-trade” system. Using E.U. ETS, policy makers set a limit or cap ascend 51
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2009 Issue 1 - Sabre Airline Solutions

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