Sustainable Transport and the Environment Guide - Unite the Union

The move reflects a decision by the EU to extend the control of carbon emissions
from the energy sector and heavy industry (the basis of the EU ETS), to other sectors
of the economy. The EU’s strategic aim is to cut CO 2 emissions across the EU by 30
per cent by 2020. This will generate the substantial reductions in greenhouse gas
emissions compared with 1990 levels, which are needed to meet the objectives of the
Kyoto Protocol, under the United Nations Framework Convention on Climate Change
(UNFCCC). The UNFCCC seeks to stabilise greenhouse gas concentrations in the
atmosphere at a level that would prevent dangerous anthropogenic interference with
the climate system.
The limitation and reduction targets adopted under the Kyoto Protocol included
emissions from domestic aviation but not emissions from international aviation or
shipping. Instead the Kyoto Protocol places an obligation on the parties to "pursue
limitation or reduction of emissions of greenhouse gases…from aviation…bunker
fuels, working through the International Civil Aviation Organization…".
Within the EU, aviation contributes 3 per cent of emissions according to the
Commission, and it has risen by 87 per cent between 1990 and 2004.
A Commission impact assessment considered the specific design options and policy
choices for including aviation in the Community scheme. It concludes that since every
airline on each route covered by the scheme would be treated equally, airlines can be
expected to pass on, to a large extent or even in full, compliance costs to customers.
This would have only a small effect on forecasted demand growth: from business-asusual
levels of 142 per cent to a minimum of 135 per cent over the period 2005 to
2020 for all departing and arriving flights. Competition between airlines would not be
significantly affected. The main difference between airlines is the length of journey
undertaken, the age of the aircraft used and the payload carried.
Therefore, carriers travelling shorter distances, using older aircraft or carrying fewer
passengers or less freight would be affected to a greater extent than more fuel efficient
aircraft. Competition between airports and tourism would not be significantly
affected. However, any risk to the latter would likely be decreased by including all
departing and arriving flights in the scheme.
Both the T&G Section of Unite the Union and the TUC 32 supported the Government
efforts to fully capture EU aviation emissions within the EU Emissions Trading
Scheme by 2008, but in practice aviation will not be covered by the scheme until
2012. Including aviation emissions into the ETS under current aviation growth and
efficiency trends, is likely to have a major impact on the ETS itself. Unlike the
participation of other sectors of the economy, the aviation industry would enter the
ETS as a long-term net purchaser of carbon credits thus reducing the availability of
credits in the system. Additionally on entry, aviation will only be provided with 80
per cent of its needs for free. As a result the industry will need to purchase any
remaining requirements at the government auctions.
From 2012 all flights arriving and departing European airports will be included in the
scheme and the airlines will receive enough allowances in 2012 to cover 97 per cent
32 A Sustainable Energy Policy: TUC response to the Government's Energy Review, 2006.
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