[mailchimp_signup][/mailchimp_signup]Dings wrote in response to an article by Rod Eddington, Chief Executive of British Airways and a follow-up letter by Sir Richard Branson of Virgin Atlantic, both published in the Financial Times in recent days. See below for the full texts. Emissions trading is an easy option for airline chiefs By Jos Dings Published: January 12 2005 02:00Sir, The bosses of British Airways and Virgin Atlantic, Rod Eddington ("Howairlines can fight climate change", January 4) and Sir Richard Branson(Letters, January 11), are right to argue that more must be done to reducethe impact of aviation on the environment. But they underestimate theexisting problem and are wrong to argue that emissions trading is the onlyanswer.Mr Eddington says his industry is only a small source of greenhouse gasemissions. Yet the climate impact of aviation is put at 4-12 per cent ofhuman-induced global warming, and the market is growing fast - at 5 per centper year. Yet this industry, which contributes just 1 per cent to globalgross domestic product and 0.2 per cent of global employment, still existsin a parallel universe where value added tax (not paid on fuel orinternational tickets) is described by airline bosses as a "swingeing tax".In fact, compared to other sectors, the industry as a whole has ferociouslyresisted any attempts to make it take responsibility for its environmentalimpact. The total inaction of the International Civil Aviation Organisation(ICAO), given responsibility to tackle the issue after Kyoto, attests tothis.Both men suggest that the European emissions trading system is now the onlysolution. They would. The industry stands to gain by joining - as thehistory of similar systems suggests that carriers will receive the majorityof their tradable permits free, on entry to the system, and pay for only atiny number. Furthermore, the price is likely to stay low because of thepolitical necessity of appeasing energy-intensive European exporters such asthe steel industry, who, as of January 1 already participate in the system.Consequently there will be little or no incentive to reduce emissions.There is a range of fairer options that would make airlines pay for everyton of emissions they produce and therefore give a real incentive forreductions - en-route emissions charges and tax on aviation fuel are twoexamples. Far from being "blunt" instruments, such charges would merelybring the sector into line with every other area of economic activity.If airline bosses are really serious about climate change, they should gettheir heads out of the clouds and start taking these other optionsseriously.Jos Dings, European Federation for Transport and Environment (T&E), 1000Brussels, BelgiumHow airlines can fight climate changeBy Rod EddingtonPublished: January 4 2005 02:00During the 20th century, technological progress and market economicscombined to deliver an unprecedented standard of living for many of usacross the globe. The challenge facing us in the 21st century is to ensurethat these benefits can be shared more widely and sustained without seriousdamage to the environment. This is reflected in the priorities that TonyBlair has set for the UK's presidencies of the Group of Eight industrialisednations and the European Union this year - climate change and Africa.In the aviation industry, we have a particular interest in the primeminister's agenda. Aviation is a small but growing source of greenhouse gasemissions. The British government is supporting plans to constrain theirgrowth by including aviation within the EU emissions trading scheme.The reaction of the main players in the UK aviation industry is to give acautious welcome to these plans. The caution arises from the potential risksto the competitiveness of Europe's aviation industry. But we welcome theBritish initiative because emissions trading is likely to be the mosteffective and efficient instrument for dealing with greenhouse gas emissionsfrom aviation.This positive response may come as a surprise. However, British Airways haslong believed in responsible management of environmental issues. We haveimproved our fuel efficiency by 25 per cent since 1990 and in the past fiveyears have cut our carbon dioxide emissions by 15 per cent. We have alsohalved the noise impact of our aircraft fleet in the past five years. Thishas been achieved primarily by investing in quieter aircraft with loweremission levels and by improving flight procedures, particularly on take-offand landing. We work continuously with aircraft and engine manufacturers andother stakeholders, such as National Air Traffic Services, to improve ourenvironmental performance.The high cost of aviation fuel gives us a continuing incentive to reduceemissions by boosting fuel efficiency. But with the growing demand for airtravel, efficiency improvements are unlikely to be big enough to prevent thegrowth of aviation emissions. At a time when the world needs to achievesubstantial cuts in greenhouse gases, this poses a serious environmentalchallenge for our industry.Some of aviation's environmental critics have been pressing for swingeingtaxes on air travel. This is a blunt and ineffective approach. It works bymaking it too costly for people to fly. Emissions trading is a much moreefficient mechanism, as it gives airlines and other participants choice andcreates financial incentives. We either cut our own emissions or we pay toensure that someone else does it for us.BA has built up experience of emissions trading by participating in theBritish government's voluntary scheme. We are the only airline in the schemeand may be the only airline in the world to be actively participating inemissions trading.This experience benefits our business in several ways. The concept ofemissions trading helps focus the minds of our management on the importanceof environmental improvements. We have gained valuable knowledge on how togather and report emissions data. And our practical understanding can helpus influence the framework for future emissions trading schemes.The longer-term objective is to establish a global approach to emissionstrading in aviation, through the International Civil Aviation Organisation.It will take time to get agreement on this, particularly with the US'srejection of the Kyoto protocol. However, there is an opportunity todemonstrate that such an approach can work in Europe, by including aviationin the EU emissions trading scheme from 2008, when the scheme moves into itssecond phase.To avoid competitive distortions, the EU scheme should apply only to flightsthat operate fully within the EU. Also, aviation should not be forced tocomply with standards that differ from those for other industries. Thesuggestion that its targets should be higher because of other, less wellunderstood, effects in the upper atmosphere should be resisted. Theseeffects need more research and emissions trading is unlikely to be aneffective way to tackle them.Technology and market mechanisms have driven massive economic progressduring the past two centuries. Now we need to harness them to tackle theenvironmental challenges that the world faces. It is vital that the aviationindustry play its part. Europe's emissions trading scheme offers an idealopportunity for it to do so.The writer is chief executive of British AirwaysGlobal emissions trading scheme is right way to limit aviation pollutionBy Richard BransonPublished: January 11 2005 02:00Sir, I am delighted that Rod Eddington, the British Airways chief executive,has drawn attention to the problem of climate change and the need foreveryone in the air transport industry to play a part in finding a solution("How airlines can fight climate change", January 4).Air travel continues to bring enormous benefits to society. It oils thewheels of commerce; it generates jobs; it opens minds as ever more peopleexperience new cultures. The recent tsunami in the Indian Ocean has been anappalling disaster but just imagine how the world could have respondedwithout the aid of air transport. Virgin Atlantic alone has sent a number ofrelief flights to the region and carried large amounts of aid free ofcharge. Other airlines have also contributed substantially.We have to recognise, however, that there are costs as well as benefitsassociated with aviation. Everyone in the industry has to do everythingpossible to minimise environmental costs. The record so far has been goodbut more can and must be done.Some environmentalists simply want to stop air travel. That is a foolishapproach. For example, imagine putting all those people on ships and theconsequent impact on the extremely delicate marine environment.There are others who seek to impose blanket taxes on the industry. Yet, asMr Eddington points out, such instruments are blunt and usually ineffective.They are not the best way to achieve the objectives we strive for.There is a growing consensus that the way forward is an emissions tradingscheme. Virgin Atlantic has been a strong supporter of such an approach foraviation and we are pleased that the UK government intends to seek agreementon a Europe-wide scheme during its presidency of the European Union laterthis year.In the longer term, the answer is a global scheme agreed through theInternational Civil Aviation Organisation. This will take time to achievebut it is worth our effort and patience. There is too much at stake,environmentally and commercially, to risk anything less than a wellthought-out and tested initiative.Aviation has made considerable progress in reducing aircraft noise andemissions and companies do not always get the recognition they deserve forwhat has been achieved. Virgin Atlantic, for example, has investedsubstantially in new, more environmentally friendly equipment, to the pointwhere we now have one of the youngest fleets in the world. Between 2000 and2003 emissions generated by our aircraft during take-off and landing fellsignificantly. However, more can be achieved, especially if all interestedparties work together. For our part, we are committed to doing just that.Richard Branson, Chairman, Virgin Group