Newsmakers 2009: Europe’s ETS proves to be a fiasco for operators

Twelve months ago many of the business aircraft operators who had any intention of flying in European airspace were probably still blissfully unaware of th

By Charles Alcock • Managing Editor

December 28, 2009

Twelve months ago many of the business aircraft operators who had any intention of flying in European airspace were probably still blissfully unaware of the continent’s new emissions trading scheme (ETS), despite the fact that the European Commission had given at least a couple of years’ notice of its intention to extend the cap-and-trade system to aviation. Beginning this month (Jan. 1, 2010), ETS becomes a reality with the start of a benchmarking period for measuring and reporting carbon emissions. The full process of monitoring, reporting and verification (MRV) coupled with the requirement to trade in carbon credits to cover actual emissions does not start until January 2012. However, significant numbers of business aircraft operators have failed to
meet deadlines just to register their MRV plans with European authorities and theoretically could already be facing hefty fines.

The ETS is based on the fairly straightforward principle of “polluter pays.” Yet somehow, Europe’s bureaucrats have mismanaged the introduction of ETS with an array of confusing, self-contradictory claptrap that even the finest minds in the U.S. Internal Revenue Service would struggle to deliver.

The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background.