Aviation carbon plan faces crunch

The battle over the European Union’s first expansion of its carbon market abroad will continue for months and the inclusion of airlines into the program faces a “crunch” in April, according to Deutsche Bank AG.
The 27-nation EU decided in 2008 that flights to and from European airports should be included within the bloc’s greenhouse gas-reduction system as of this year after airline emissions in the region doubled over two decades.

The enlargement of the European cap-and-trade programme triggered opposition from countries including the US, China and Russia.

Flight School

“The politics and diplomacy around the inclusion of flights between the EU and third countries will likely continue for many months, with the moment of truth coming next April 30, 2013,” when airlines have for the first time to surrender EU or United Nations emissions permits against their emissions, Isabelle Curien, a Deutsche Bank analyst in Paris, said today in a research note.

Aviation Colleges

International airlines in the EU greenhouse gas-reduction system face a cumulative net shortfall of 385 million carbon permits until 2020, according to Deutsche Bank’s base-case scenario.

The whole EU emissions-trading program, which also covers manufacturers and utilities, may have a cumulative surplus of 1.264 billion metric tons of carbon permits by 2020Business Management Articles, the bank said.