EU Emissions Trading Scheme (EU ETS)

Burning less fossil fuels is definitely something to be concerned about in the future.  Looking for cost efficient traveling is always in research to find ways to reduce the amount carbon emissions produced. However, in the aviation world (planes), I honestly think that there should be a solution for carbon emissions due to the fact that flying is one major choice from all travelers for fast arrivals to their destinations.  But the question is, do we yet have the proper technology to reduce air traffic carbon emissions?  Meanwhile, airlines may get taxed for and may cause downfalls of passengers and flight crew.

The European Union Emissions Trading Scheme (EU ETS) is the first international trading system for carbon dioxide (CO2) emissions in the world and is a cornerstone of the EU’s efforts to address the issue of climate change.  EU-ETS is a cap-trade system that the principle of operations involves the allocation and trading of emission allowances. Every one allowance represents one ton of carbon dioxide. The capping, or maximum, of emissions is set and regulated by the European government. Most airlines will get an allotted amount accordingly.  Additional allowances are distributed to operators through trade. The EU-ETS is designed to reduce the total amount of emissions in multiple industries across the European continent (European Commission, 2013)). The goal is to successfully do this in a cost effective way and by allowing numerous companies to trade allowances, they will be able to potentially generate income and competition between joining countries.  With that being said, its hard to see how the ETS helps the environment when there is no mandate on how the funds collected can be spent.

President has made it clear that he wants change in the aviation world facing EU-ETS.  According to Aaron Karp article, President Obama signed into law last year prohibiting US airlines from participating in the European Union’s (EU) Emissions Trading Scheme (ETS).  It states:

"the transportation secretary can bar US carriers from participating in the EU ETS if doing so would be “in the public interest,” particularly taking into account “the impacts on US consumers, US carriers and US operators; the impacts on the economic, energy and environmental security of the United States; and the impacts on US foreign relations, including existing international commitments.” (Karp, 2012)

The U.S. and other countries are opposed in the Emissions Trading System because of taxes and other fees added to air carriers for flying. This will cause airlines to not make much profit and travelers will not considering traveling as much as they use to.  Starting from an airport that may be outside of Europe by a great distance and charging the airline for that trip if they enter European airspace. Many nations, including the US, have opposed this idea. This shows that their is a common goal for all to reduce the total amount of emissions throughout globe.

Solutions from the International Civil Aviation Organization (ICAO) should involve in a precise way of charging the allocations globally. If EU-ETS would want reduction in emissions through their airspace, then i think it should be their airspace and their airspace ONLY that should be charged. I think the difficult part will be when different nations will required different charges based on traffic, aircraft, and capabilities. Another way to possibly make a positive change will be to continue the development of reduce carbon-emitting engines. We have made great advances in limiting the total amount of emissions and I feel that the major countries of the world should focus on cleaner developments of their aircraft, rather than a focus on increasing profits.  The only issue now is not having the technology to to create a more efficient, quiet and cleaner burning engine in which I think we do but maybe too costly to have it done as of yet.


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