U.K., U.S. Officials Spar Over Emissions Trading

Sept. 10, 2007 — -- U.K. government officials last week defended the European Union's plan to include aviation in its emissions trading scheme (ETS) in the face of vocal opposition from U.S. government officials and industry representatives.

In contrast to the U.S. stance on emissions reduction (DAILY, Sept. 6), the U.K. believes operational reforms and new technologies alone are not enough, said Clive Wright, the British Embassy in Washington's first secretary for transport policy. Instead, market-based tools, such as the ETS, are essential to lower emissions, he told a Federal Bar Association event Sept. 7 in Washington.

The U.K. hopes to reach a solution to emissions through ICAO, he said, but it is concerned about "slow pace and limited prospects" of reforms through that organization. "We are not persuaded. 'Consensus' is an excuse to do nothing," he said, acknowledging the U.S. belief that emissions trading plans should be handled through ICAO.

The cost of inaction in emissions reduction could be dire, Wright warned, citing a U.K. government study which found that if unchecked, aviation's effect on the environment could cost the U.K. as much as 20% of its GDP by 2030. "The cost of action is just 1% of GDP," he added.

FAA's Carl Burleson, director of energy and environment, agreed that the environmental effects of aviation must be addressed. But the U.S. believes that air traffic modernization and research into new technologies and alternative fuels will be more effective than market-based measures. Further research on which greenhouse gas -- CO2 or NOX -- is more harmful also needs to be done, Burleson said. The EU ETS governs only CO2.

Nancy Young, ATA environment VP, seconded Burleson's thoughts. She argued, however, that the costs of the EU ETS could prevent airlines from investing in these new technologies. Because fuel is the airline industry's biggest cost, industry is already focused on reducing fuel burn, she said, and that translates into reducing emissions.