Berliner Boersenzeitung - European aviation sector fears CO2 rules could clip its wings

EUR -
AED 4.11646
AFN 71.736469
ALL 90.874166
AMD 403.965056
ANG 2.006149
AOA 1027.85474
ARS 1731.765412
AUD 1.621617
AWG 2.020401
AZN 1.908695
BAM 1.955692
BBD 2.260065
BDT 139.762274
BGN 1.959123
BHD 0.423573
BIF 3353.384716
BMD 1.120888
BND 1.432502
BOB 13.54913
BRL 6.169143
BSD 1.122138
BTN 105.954835
BWP 15.373013
BYN 3.34801
BYR 21969.405587
BZD 2.256755
CAD 1.572768
CDF 2594.855378
CHF 0.915519
CLF 0.027851
CLP 1096.139048
CNY 7.49706
CNH 7.472776
COP 3628.998328
CRC 508.867331
CUC 1.120888
CUP 26.930151
CVE 110.255463
CZK 24.340125
DJF 199.818955
DKK 7.47458
DOP 67.385674
DZD 152.658181
EGP 60.418511
ERN 16.813321
ETB 184.167677
FJD 2.528049
FKP 0.832861
GBP 0.833823
GEL 2.919932
GGP 0.832861
GHS 13.08916
GIP 0.832861
GMD 83.503849
GNF 9939.228903
GTQ 8.575258
GYD 235.104907
HKD 8.785688
HNL 30.159064
HRK 7.587302
HTG 147.060559
HUF 364.436013
IDR 20307.240712
ILS 3.588243
IMP 0.832861
INR 105.905763
IQD 1701.090792
IRR 2119994.957286
ISK 136.79338
JEP 0.832861
JMD 177.978574
JOD 0.794682
JPY 176.933342
KES 145.62542
KGS 98.020871
KHR 4565.747617
KMF 494.311894
KPW 1008.799193
KRW 1525.72473
KWD 0.348125
KYD 0.935136
KZT 504.535359
LAK 25254.266049
LBP 100773.199044
LKR 373.044387
LRD 190.756903
LSL 18.388181
LTL 3.309691
LVL 0.678014
LYD 7.183603
MAD 10.935298
MDL 20.061907
MGA 5087.673377
MKD 61.547363
MMK 2353.691297
MNT 4036.826183
MOP 9.067118
MRU 45.33309
MUR 52.401575
MVR 17.323345
MWK 1945.775083
MXN 21.001185
MYR 4.550019
MZN 71.635344
NAD 18.388837
NGN 1506.686375
NIO 41.296796
NOK 10.432599
NPR 169.531116
NZD 2.010049
OMR 0.430987
PAB 1.122128
PEN 3.865086
PGK 5.111672
PHP 70.655171
PKR 310.345676
PLN 4.403387
PYG 6913.617833
QAR 4.101645
RON 5.335988
RSD 117.649523
RUB 91.353608
RWF 1652.893886
SAR 4.207423
SBD 9.025074
SCR 15.460008
SDG 674.210238
SEK 11.010466
SGD 1.434585
SHP 0.835673
SLE 25.679439
SLL 23504.466687
SOS 641.258832
SRD 42.097225
STD 23200.119367
STN 24.498427
SVC 9.818326
SYP 14573.785945
SZL 18.38182
THB 37.522812
TJS 10.351389
TMT 3.934317
TND 3.343611
TOP 2.698829
TRY 56.222402
TTD 7.599478
TWD 36.9896
TZS 2961.947057
UAH 50.972128
UGX 4538.70862
USD 1.120888
UYU 45.1973
UZS 13390.140367
VES 1001.814937
VND 28700.338268
VUV 134.119962
WST 3.119611
XAF 655.957
XAG 0.021663
XAU 0.000276250222
XCD 3.029256
XCG 2.02227
XDR 0.792526
XOF 655.957
XPF 119.331742
YER 264.72568
ZAR 18.502331
ZMK 10089.322765
ZMW 22.750539
ZWL 360.925492
SSP 6440.080738
MXV 2.36332
  • CMSD

    -0.1200

    19.81

    -0.61%

  • JRI

    0.0000

    10.77

    0%

  • BCC

    -1.8200

    74.15

    -2.45%

  • CMSC

    -0.2228

    19.53

    -1.14%

  • BCE

    0.2000

    20.34

    +0.98%

  • RIO

    0.0100

    94.17

    +0.01%

  • AZN

    -2.7400

    161.47

    -1.7%

  • GSK

    -1.1800

    48.17

    -2.45%

  • RBGPF

    0.0000

    65

    0%

  • NGG

    0.8800

    75.82

    +1.16%

  • RYCEF

    -0.7300

    19.08

    -3.83%

  • BTI

    -0.4500

    54.4

    -0.83%

  • BP

    0.4700

    43.99

    +1.07%

  • RELX

    -0.0600

    33.18

    -0.18%

  • VOD

    -0.1800

    16.15

    -1.11%

European aviation sector fears CO2 rules could clip its wings
European aviation sector fears CO2 rules could clip its wings / Photo: BULENT KILIC - AFP/File

European aviation sector fears CO2 rules could clip its wings

European airlines fear losing out to rivals based outside the EU that can ignore the bloc's emissions-reduction rules to become carbon neutral by 2050.

Text size:

The "Fit for 55" package sets out an initial goal of reducing emissions by 55 percent in 2030 compared with the 1990 level.

This involves bloc-level obligations to scale up the use of sustainable aviation fuels (SAFs) to be blended with fossil fuels in all flights departing from European airports.

SAFs come from sources such as municipal solid waste, leftovers from the agricultural and forestry industry, used cooking oil, crops and plants, and hydrogen.

These technologies are still developing and the end product is more expensive, thereby placing additional costs on airlines obliged to use them while passengers will have to pay more for flights.

The aviation sector is growing in Asia and the Middle East and companies based there could benefit greatly as they are not subject to these constraints, industry experts say.

"The European airline industry has to live with the fact that it's cheaper to bypass environmental reduction ideas if you hop outside of Europe," Carsten Spohr, CEO of German carrier Lufthansa, said at the Airlines for Europe (A4E) aviation summit in Brussels on Wednesday.

Spohr said an airline flying from Brussels to Singapore via Paris, for example, must pay through a carbon emissions trading scheme for the European leg of the trip.

"If you want to go via Doha, you don't need to pay emission trading, you also don't need to be part of blending (SAF and traditional fuels)," Spohr said.

- 'Stop being naive' -

Carbon dioxide emissions from aviation have been included in the EU emissions trading system since 2012.

Under this system, all airlines operating in Europe -- both European and non-European -- have to monitor, report and verify their emissions, and to surrender allowances against those emissions.

Qatar has obtained a controversial "open skies" agreement with the European Union to increase flights between the country and the 27-nation bloc.

Saudi Arabia plans to make Riyadh a gigantic regional aviation hub like Dubai while Istanbul airport, the main hub of Turkish Airlines, has already surpassed London's Heathrow and Paris's Charles de Gaulle by handling 64.3 million passengers last year.

"Istanbul is ideally placed for going to Asia, Africa and eastern Europe. We have to stop being naive," said Alain Battisti, the former president of France's National Aviation Federation.

- 'Centre of gravity shifting' -

Istanbul plans to triple its flow of passengers.

"Climate change and the legal regulations that go with it are inevitable. Important measures are going to be taken on the EU side, and as a result, the centre of gravity of air transport is likely to shift to the East," Kadri Samsunlu, the CEO of Istanbul airport, told AFP.

A detailed study in March last year by the Dutch research group SEO said that non-European aviation hubs would gain passengers as a result of the EU measures.

It said intra-European passengers could decline by 14 percent.

Augustin de Romanet, head of France's ADP airports group, said a major shift east "would make the European companies bankrupt", though he added: "I think that Europe will eventually avoid this distorted competition".

A4E interim chief Laurent Donceel said Fit for 55 will increase costs for air carriers by 577 billion euros ($629 billion) by 2050.

The "Europeans for fair competition" group, which includes airlines and unions, is seeking a carbon border tax, like those for industry.

It is a duty on imports based on the amount of carbon emissions resulting from the production of the product in question. As a price on carbon, it discourages emissions and as a trade-related measure it affects production and exports.

Roman Mauroschat, an aviation policy officer at Transport and Environment, a think tank based in Brussels, said a carbon border tax only made sense for sectors where production risked being shifted to third countries exporting goods to Europe.

"Air companies have been warning for years that climate measures will hit their competitivity. However, projections forecast a strong growth in the sector despite the new measures."

(B.Hartmann--BBZ)