Wednesday, December 5, 2012

EU Emissions Trading Scheme (ETS)

The Emissions Trading Scheme (ETS) is a policy of the European Union designed to help reduce industrial emissions.  "The EU ETS covers some 11,000 power stations and industrial plants in 30 countries."  Companies are given a certain number of "allowances" each year, the majority of which are given out for free.  Each company self monitors and reports the amount of green house emissions it produces each year.  If they go over their allowance, they must purchase additional allowances.  The allowances may be purchased from a different company that did not use all of their own.  If a company doesn't use all of its allowances, it may keep them for future use, or sell them to other companies.

Aviation was brought into this system in the beginning of 2012, however the EU has postponed enforcement on flights into and out of countries not within the EU.  There has been a large protest by non-EU countries over the implementation of the EU ETS.  The United States has been opposed to it as well, mostly because the EU would be charging flights from start to finish.  This would include time flights spent in airspace over the United States.  Many feel this is unfair.

On November 27, 2012, President Obama signed a law enabling the transportation secretary to prohibit US airlines from participating in the EU ETS.  These clearly demonstrates that the United States is opposed, and will not participate.

The EU has postponed the ETS on flights into and out of the EU while a more "global friendly" solution is reached.  What should this solution be?  If I knew the answer, I would be working on a formal report for ICAO instead of typing a blog.  I think that we all have a responsibility to reduce our impact on the environment, and I also believe that companies rarely put restrictions on themselves to reduce their own impact.  I don't think it is Europe's responsibility to regulate the globe.  Europe should try to encourage others to follow their lead.  They can have global influence just by setting the standard. 

3 comments:

  1. Good point about Europe setting an example...a bit more diplomatic than the original plan.

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  2. It is too bad that the US is not leading on this issue. I do not hold a high hope of ICAO fixing this in 2013. This issue may be larger than ICAO. I personally feel that ICAO made this ETS as bad a possible to make the 2013 solution easier to sell.

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  3. Setting the standard is important, but the EU needs to do so without alienating everyone else or demanding payment for their ssytem.

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