New York Times (May 16,2012)

10 Airlines Snub Europe’s Emissions Rule
By BLOOMBERG NEWS
Published: May 15, 2012

LONDON — Chinese and Indian airlines failed to submit carbon-dioxide emissions data for 2011, disregarding European rules that seek to expand the region’s emissions trading system to include aviation.

There has been “systematic non-reporting” of emissions to and from Europe from 10 airlines based in India and China, the European Commission said Tuesday in a statement on its Web site. The European Union expanded its Emissions Trading Scheme in January to include airlines. The new rules require carriers to submit data on their carbon emissions for last year, although carbon permits are not required for 2011 emissions.

The inclusion of airlines in the E.T.S. triggered opposition from countries including the United States, China and Russia. They said the European Union should let a United Nations agency, the International Civil Aviation Organization, decide on greenhouse-gas limits for the industry.

The Chinese and Indian airlines represent less than 3 percent of the sector’s emissions, said Connie Hedegaard, the European climate commissioner. Eight airlines in China and two in India have until mid-June to submit the data, she said. The remaining airlines reported last year’s emissions by the March 31 deadline, the commission said in the statement. More than 1,200 emissions reports have been submitted from airlines, it said.

The Union, home of the world’s biggest carbon trading system by volume, decided in 2008 that aviation would become a part of its cap-and-trade plan this year. Airline carbon-dioxide discharges in the region doubled over two decades and international organizations failed to enact pollution curbs.

The airlines that failed to obey the rules probably will not be penalized. Instead, the European Union may become more strict next year when airlines need to hand in allowances to cover their emissions, Isabelle Curien, a Paris-based analyst at Deutsche Bank, predicted.

“The E.U. will be very, very flexible,” Ms. Curien said. “Member states may be unwilling to instigate an operating ban” for airlines that fail to comply, she said. An operating ban would restrict entry of airlines into the Union.

The Union may wait until airlines need to hand in carbon allowances and credits for the first time, on April 30, 2013, Ms. Curien said.

This year, carriers will be given free emission permits covering 85 percent of the industry cap and will have to buy the remaining 15 percent at auction. They can also trade among each other.




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