EU-ETS: EU vs. The World

The European Union Emissions Trading Scheme (EU-ETS) is a cap-trade system that he principle of operations involves the allocation and trading of emission allowances. Every one allowance represents one ton of carbon dioxide. The capping, or maximum, of emissions is set and regulated by the European government. Additional allowances are distributed to operators through trade. The EU-ETS is designed to reduce the total amount of emissions in multiple industries across the European continent. The goal is to successfully do this in a cost effective way and by allowing numerous companies to trade allowances, they will be able to potentially generate income and competition between joining countries. 

Countries are opposed to this controversial agreement because of EU planning to tax the air carriers for their entire route. This means starting from an airport )that may be outside of Europe by a great distance) and charging the airline for that trip if they enter European airspace. A total of seventeen nations, including the US, have opposed this idea. Following a two day meeting of the opposing countries, a US senior official said during a news conference, "In a nutshell, the meeting confirmed the very solid and strong opposition to the ETS, but also indicated that there is alot of interest among countries in continuing to work on the suite of activities in ICAO." This shows that although numerous countries are not currently agreeing with each other at the moment, at least their is a common goal for all to reduce the total amount of emissions throughout our planet. 

According to a recent article by the Chicago Tribune, President Obama has now signed a bill that will shield US airlines from paying for each ton of carbon emissions.  Clark Stevens, a White House spokesman, states, "The Obama administration is firmly committed to reducing harmful carbon pollution from civil aviation both domestically and internationally, but, as we have said on many occasions, the application of the EU ETS to non-EU air carriers is the wrong way to achieve that objective," I support the Obama Administration when it comes to their dedication to sign a bill that (for once) could result in positive change for aviation here in the States and also throughout the world. It will be interesting to see how the EU governments react to this signing in terms of long-term negotiations. Will more nations start to ban the EU charge in the future?

The European government hopes this will create a drive within participating nations to become more innovative and create monetary incentive for countries to reducing their emissions.  EU also has a position to possibly link the EU-ETS with the Kyoto Protocol’s Joint Implementation and Clean Development Mechanism. Another key point that the EU governments support would include that expansion of this system to other sectors (such as the petrochemical, ammonia and aluminum sectors) that will further decrease the overall amount of emissions on a global scale. 

The new ICAO solution should involve way more secure and precise way of charging the allocations globally. If EU would desire a reduction in emissions through their airspace, then it should be their airspace and their airspace only that should be charged. I think the difficult part will be when different nations will required different charges based on traffic, aircraft, and capabilities. These differences will have to addressed in the new solution. Another way to possibly make a positive change will be to continue the development of reduce carbon-emitting engines. We have made great advances in limiting the total amount of emissions and I feel that the major countries of the world should focus on cleaner developments of their aircraft, rather than a focus on increasing profits.