Transport and climate change

Ensuring airlines pay for their pollution

Aviation is the fastest growing source of greenhouse gas emissions at a time when most other sectors have been reducing emissions. For this reason, the European Commission proposed legislation to include aviation in the EU's emissions trading scheme (ETS). This will help check the growth in emissions from aviation by placing a cap on them, which means airlines have an incentive to invest in ways to reduce their emissions. In order for the scheme to function effectively as a market-based instrument, the caps must be in line with emissions reductions targets and permits should be completely auctioned. Allocating permits for free risks allowing airlines to make windfall profits by passing on the opportunity (non-existent) cost to their customers. The European Parliament had co-decision powers in the final legislation. The EP environment committee had voted to ensure that 50% of the emissions permits would be auctioned. However, in the final vote, a majority of MEPs rejected this position. In the final legislation, only 15% of the permits will be auctioned.

See the list of how all MEPs voted on Amendment 25 to the Liese report (13th November 2007)