Airlines embrace US$24bn pollution plan
The aviation industry is supporting a United Nations proposal to limit pollution from international flights even though the measure may eventually cost companies US$24 billion annually.
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Trade groups representing United Continental Holdings Inc., Boeing Co. and other industry leaders are pushing nations to join the agreement, which would require companies to offset their emissions growth by funding environmental initiatives. The accord, being brokered in Montreal during 11 days of talks beginning Tuesday, would be the first global climate pact targeting a single industry.
Exhaust from international flights accounts for about 2 percent of global greenhouse gases, yet was largely omitted from the Paris accord on climate change last year because delegates feared divvying up responsibility for global routes could derail the broader deal. With aviation emissions forecast to triple by 2050, airlines believe that regional or global regulation is inevitable. If their pollution must be controlled, airlines would prefer a single international standard, saying it would be far cheaper and easier than following a patchwork of local programs.
“We recognise that as an industry, we have an impact on climate change,” said Michael Gill, executive director of the Air Transport Action Group, which represents airlines, engine makers, airports and pilots. “The industry is willing to pay its share. We just want to pay our share in the most economic way possible.”
To be clear, the 15-year agreement would not force airlines to cut their pollution. Instead, companies would compensate for any emissions growth after the accord begins in 2020 by buying credits that back renewable energy development, forest preservation or other environmental endeavors. Airlines estimates the annual industrywide cost may be as much as $23.9 billion by 2035, or 1.8 percent of projected revenue.
If the UN-sponsored deal fails, companies run the risk of facing even costlier regulation if Europe or others push ahead with regional plans.
Environmentalists also are pushing for the deal in Montreal, saying it’s an important first step that can be improved over time. Yet they criticize the current proposal for relying on voluntary participation during the first six years. And they say the low cost of environmental offsets could let companies off easy
“It’s peanuts,” said Bill Hemmings, of the Brussels-based environmental group Transport & Environment. “It gets them off the hook. Without enforced safeguards, it’s a massive green-washing exercise.”
Outcome Uncertain
Nonetheless, supporters of the accord say it’s a critical piece of the effort to stave off erratic floods, droughts and other dire impacts of global warming. The agreement has garnered pledges of support from at least 60 nations responsible for most aviation emissions, including the U.S., China, the United Arab Emirates, South Korea and a majority of European countries.
“The Paris Agreement alone won’t solve the climate crisis,” U.S. President Barack Obama said in September during a joint appearance with Chinese President Xi Jinping, when both leaders expressed support for the aviation accord.
The push for a global emissions deal rose to the top of the aviation agenda in 2012, after the European Union said it would require airlines to buy carbon permits for all flights in and out of Europe. That triggered outcry from China, Egypt, Brazil and other nations that argued the measure was beyond the EU’s authority. Europe agreed to suspend its effort and allow nations to negotiate an international deal.
Credit: blooomberg