EU Postpones ETS Extension

The European Union (EU) has postponed planned extension of its Emissions Trading Scheme (ETS) for a year, in the hopes that the International Civil Aviation Organization (ICAO) will create a global emissions deal.
Climate Commissioner Connie Hedegaard said that she had “stopped the clock […] as a gesture of good faith.”
She said:  “It seems that because of some countries’ dislike of our scheme, many countries are prepared to move in ICAO, and even to move toward a market-based mechanism at global level.”
The EU ETS was first implemented in the aviation industry from January 1, 2012, where internal EU flights must pay a tax on each tonne of CO2 emitted.  The extension would have meant that all airlines landing at or taking off from an EU airport would be charged.  Many countries, particularly China, India and the US, were firmly opposed to the legislation.
Ms Hedegaard said that if no progress was made by ICAO by the body’s September 2013 annual assembly, the ETS would be reintroduced.
Airlines have estimated that the ETS would cost them €17.5 billion (US$22.3bn) by 2020.
(Image:  Key – Tom Allett)