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The Billion Euro Aviation Bonanza - Aviation's Participation in the EU ETS

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A new study shows that the aviation industry will receive substantial additional windfall profits from the proposed ‘stopping of the clock’ for flights to and from Europe under the EU Emissions Trading System (ETS). Airlines should not retain these windfall profits – that would be unjust, self-serving and a betrayal of passengers’ contributions to fight climate change - but give them to the UN’s Green Climate Fund established to assist developing countries tackle the impacts of climate change.

Stop the Clock: the ETS Aviation Derogation

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The European Commission has proposed a one year “stop the clock” derogation for the aviation portion of the EU Emissions Trading System (ETS) Directive to provide ‘breathing space’ for the International Civil Aviation Organisation (ICAO) to come to a global agreement on regulating international aviation emissions. The derogation applies to all flights to and from Europe (including EFTA states and Croatia) except intra-European flights.T&E regrets that the Commission has been put in this difficult position through international pressure, particularly from the US.

VAT on international passenger transport

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In October 2012 the European Commission launched a public consultation on 'Review of existing legislation on VAT reduced rates'. T&E has been campaigning to abolish the reduced rates for international passenger transport for years due to the harmful competitive distortions caused by those rates and the implicit subsidy it provides for passenger transport, especially in the aviation sector. 

End of legal challenge to aviation in ETS, but will opposition now move elsewhere?

Sky with contrails

The coalition of American aviation interests that challenged the EU’s right to introduce emissions trading to air transport has abandoned its legal action. A group of six NGOs welcomed the decision, but said the airline coalition’s failure to accept December’s ruling by the European Court of Justice suggests the Americans may be moving the battlefield elsewhere.

What IATA said about emissions trading: then and now

This briefing highlights quotes from two IATA reports, from 2001 and 2007, that show the aviation industry initially supported the concept of emissions trading for aviation, going as far as calling it a "no brainer" that would "maximise gain".  However, more recent quotes from the organisation's CEO show that now the EU has led efforts to actually introduce such a scheme, IATA has changed its mind and launched an all-out attack against it.

This is the moment of truth for Icao

Editorial by Jos Dings, T&E Director
If you listen carefully through the cacophony surrounding the inclusion of aviation in Europe’s Emissions Trading System, there is progress. Important progress.The verdict of the European Court of Justice cleared the legal hurdle, which even more clearly exposes this fight for what it really is: a political power struggle between the most important economic blocs on the planet.

A brave new but uncertain era for aviation and environment

The world’s first transnational scheme that forces airlines to pay for the costs of their carbon emissions came into effect on 1 January. Following a historic ruling by the European Court of Justice on 21 December that declared emissions trading for airlines using EU airspace legal, airlines can now only use EU airports if they have the necessary emissions permits to do so. Yet the battle continues, with various non-EU countries threatening other forms of retaliation, and the EU standing firm, saying it will only make concessions if there is a global measure.

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