Emissions Trading for European Aviation - Political and Economic Implications of an Innovative Approach to Tackling Climate Change



Emissions Trading for European Aviation - Political and Economic Implications of an Innovative Approach to Tackling Climate Change

Authors

Janina Scheelhaase, Wolfgang Grimme, DLR, DE

Description

The paper addresses the challenging task of setting up an emissions trading system for European aviation and analyses the feasibility of political implementation and its economic impacts.

Abstract

International aviation is responsible for between 2.5 and 3 per cent of total anthropogenic carbon dioxide (CO2) emissions which are partly made responsible for climate change. Currently, international aviation is not subject to any regulatory framework for the limitation of these emissions. However, the European Commission and several member states of the European Union have declared their commitment to a policy aimed at climate protection. This also includes instruments adressing the mitigation of climate impacts of aviation. From an economic point of view, the introduction of an emissions trading scheme would be an appropriate instrument to limit these impacts. In September 2005, the European Commission has announced that aviation shall be included in the already existing EU emissions trading scheme for stationary sources.

Initially, this paper outlines the possibilities how aviation could be included in the existing EU emissions trading scheme. It considers the particular challenges that emanate from the exclusion of international aviation from the Kyoto protocol and gives an overview on the current political discussion on EU as well on member states level.

Subsequently, an innovative concept for an emissions trading scheme for aviation in Europe is presented and the feasibility of its political implementation is discussed. Furthermore, the paper develops an estimation of the future cost burden for airlines and analyses the economic impacts on low cost carriers and full service airlines. Special consideration shall be given the question, if all flights departing airports in the EU shall be included or if only flights within the EU shall be included in the emissions trading scheme.

Publisher

Association for European Transport