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Monday, January 16, 2012

African airlines oppose EU emissions trading scheme


BY BUSINESS REPORTER AND AGENCIES
NEW plans to include non-European Union airlines in the EU Emissions Trading Scheme (ETS) could trigger a damaging trade war, Africa Airline Association (AFRAA) has warned.
The Association has forseen a situation whereby governments within Africa and other parts of the world would start a similar scheme to counter European Union (EU) Emmission Trading Scheme.
"We dont want to go this way. The scheme is bad and needs to be redisigned with wider consultation to accomodate majority of Airline’s interests," said AFRAA Secretary General Elijah Chingosho.
Chingosho faulted EU for coming up with the scheme, saying it was likely to push costs of operation higher and also bar small airlines from plying European routes.
On January 1, the EU put the ETS into use, and started charging 33 non-EU international airline companies for carbon emissions. From the scheme, the EU has the right to impose a fine on any airline failing to comply. The fine can be up to ten times the airline’s bill, suspension of air services or detention of the airplane.
Money collected
"We are opposed to this scheme. We don’t understand how the money collected is going to be used. It might end up only benefitting Europe," says C hingosho.
He said AFRAA would work with other organisations outside Europe to lobby EU to halt the scheme.
During the first East annual Aviation Law Conference in Nairobi last year, Kenya Civil Aviation Authority (KCAA) said it plans to appeal against the new policy.
The authority said compliance requires rapid acquisition of modern equipment such as aircraft. It is an expensive venture most airline operators could not meet by January 1 2012 deadline EU gave.
It cautioned that implementation of the EU policy would drive many airlines out of business.
"We realise the need to protect our environment from carbon emissions, but we are against the time frame given by EU as it is not enough and might lead to closure of many airlines from the Third World countries," said KCAA Director General Hillary Kioko.
He noted that being environmental compliant requires upgrade of key equipment such as aircrafts which most of operators cannot achieve within the short period.
"We want the EU to hold on as several airlines from Africa don’t have financial muscle to overhaul their equipment," he added.
"Small airlines needs to grow. Imposing measures barring them from premium destinations such as Europe will stiffle growth."
Carbon dioxide is considered a key green house gas and a leading contributor to climate change.
The Intergovernmental Panel on Climate Change, a scientific body which asseses climate change, says air transport produces two per cent of all carbon emission from human beings and 13 per cent from aircraft.

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