Europe warns airlines about penalties for emissions

BRUSSELS - Airlines should pay tax on aviation fuel and face a special system of financial penalties for emissions that contribute to global warming, the European Parliament has said.

Despite lobbying by the European airline industry, MEPs gave overwhelming backing to a demand for new measures designed to curb the negative environmental impact caused by the spectacular growth in air travel.

The proposals, drafted by the Green MEP, Caroline Lucas, would end the anomaly under which aviation fuel is exempt from taxes and duties, effectively subsidising air travel.

But it also proposed going much further than proposed by the European Commission, which plans to include airlines in an existing emissions trading system for industry.

This forces firms that exceed their caps to buy permits from those that pollute less or pay a penalty, creating an incentive to cut pollution.

MEPs have backed Ms Lucas's proposal for a specially-designed, polluter-pays, scheme for the aviation sector to operate until 2012.

Under these plans the airlines would not receive any free credits or be able to buy them cheaply from other industrial users.

The Parliament's vote is not legally-binding but sends a strong message to the industry.

Ms Lucas said: "Aviation is the fastest growing source of greenhouse gas emissions, with flights set to double by 2020 and triple by 2030, so doing nothing is clearly not an option.

While aviation has brought a great many benefits to society, its current growth rate is completely unsustainable. Action is urgently needed."

Carbon-dioxide emissions by aircraft on international flights from EU airports rose by 85 per cent from 1990 to 2004, counteracting other efforts to curb C02 emissions.

Last year the EU introduced its carbon-dioxide quotas on 11,400 power plants and factories.

The Commission says that including aviation in its system would add around €9 per passenger to a roundtrip ticket.

Supporters of Ms Lucas's scheme acknowledge that, with its more rigorous cap, it would probably cost the traveller more.

But they argue that it would be much more effective in curbing emissions.

British Airways, which backed the inclusion of aviation in the wider trading scheme, criticised moves to single it out.

The airline said in a statement: "We are concerned that if the European Parliament recommendations are followed, aviation will suffer a more punitive regime than other sectors.

"If emissions trading is applied properly, additional measures such as taxes are not needed.Aviation should be allowed to trade with other sectors to support its own efforts to reduce emissions."

Chris Davies environment spokesmen for the Liberal Democrats said: "By breaking up national airline monopolies we have created great opportunities for many more people to afford to travel, but the rate of growth threatens to wipe out all the CO2 savings made elsewhere."

- INDEPENDENT