EU Parliament calls for aviation emissions trade

Airlines should pay a tax for jet fuel and join the European Union's emissions trading scheme to cut back on rising emissions…

Airlines should pay a tax for jet fuel and join the European Union's emissions trading scheme to cut back on rising emissions of heat-trapping greenhouse gases, the European Parliament said today.

Aviation is not covered by the Kyoto Protocol on climate change, but its emissions are projected to grow in the coming years, causing concern among environmentalists, particularly as the low-cost airline sector booms in Europe.

The European Parliament gave its backing to proposals by the executive European Commission to include airlines in the emissions trading scheme, where industries trade rights to emit carbon dioxide, the main gas blamed for global warming.

But the parliament suggested first setting up a special trading scheme for the aviation sector on a trial basis, separate from the current system, which is dominated by power companies and other energy-intensive industries.

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"A separate, closed system for aviation is crucial at the very least as a pilot scheme," said Caroline Lucas, the Greens parliament member who sponsored the resolution.

The resolution said if aviation eventually joined the full EU scheme, measures should be taken to ensure it did not distort trade among other sectors by putting a cap on the number of permits airlines are allowed to buy on the market, for example.

The parliament vote is non-binding and does not involve an actual piece of legislation, but it is considered a signal of support by EU lawmakers for future laws on airlines and the environment.

The report called for an "immediate introduction" of a tax on kerosene or jet fuel for domestic flights and flights within the 25-nation EU, though it said exceptions could be made for non-EU carriers operating within the bloc.

It also suggested removing an exemption for the industry to value added tax. Under the current emissions trading system, EU countries set limits on how much carbon dioxide companies in sectors like power and steel can emit.

Those that overshoot their targets can sell extra permits, while those that pollute above their limit must buy allowances on the market or face a fine.