While welcoming the use of market-based measures to support carbon emission reduction efforts, the association that represents business aviation operators in Europe has warned that revisions are needed to the EU Emissions Trading Scheme (ETS) to ensure that it does not discriminate against small operators.
The European Business Aviation Association (EBAA) has responded to the expansion of the ETS to the aviation sector by warning that the scheme adds significantly to the cost burden of business jet operators. The EBAA stated:
“Business aviation is treated unfairly compared with other modes of air transport. On average, business aircraft operators must acquire up to 96% of their historical emissions in permits compared with only 15% for airlines.”
“EBAA will therefore continue to push for ways to redress this imbalance, for instance through the consideration of simplified administrative tasks for small emitters. Allowing Eurocontrol’s Small Emitters Support Facility for both reporting and verification represents a promising means to financially balance this discrepancy.”
Brian Humphries, EBAA President, said: “It is deeply unfortunate that member states have so far decided against coupling the small emitters’ reporting tool with single point verification. In many cases, for smaller emitters the costs for monitoring and reporting, and particularly verification, far outweigh the costs linked to acquiring CO2 permits. As such, the monitoring, reporting and verifying procedure threatens to weaken the competitiveness of European business aircraft operators vis-a-vis non-EU competitors and other modes of transport, such as the airlines.”
Aside from issues surrounding its implementation, and challenges to its scope by other nations, EBAA CEO Fabio Gamba added that the Scheme's introduction is unfortunate amid depressed profitability for operators:
“The year 2011, and one expects the year 2012 as well, had and will record negative air transport figures amidst depressed demand and rising operating costs. The EU ETS is predicated on growth, and it becomes redundant if not harmful when growth is negative or lacklustre at best.”
“The EU ETS adds further costs to an already depressed sector and its introduction should have at least coincided with the disposal of national tax schemes that have nothing to do with environmental protection. Instead, we face a steady onslaught of ill-advised initiatives, the latest of which is in Italy where privately-owned aircraft will be taxed if they remain on Italian soil for more than 48 hours,” Gamba added.
by Ulrika Lomas
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