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Airlines should pay a tax for jet fuel and join the European Union's emissions trading scheme to cut back on the rising amounts of greenhouse gases they produce, the European Parliament said on Tuesday.
International 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, especially 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 (CO2), the main gas blamed for global warming.
But the parliament suggested setting up a separate trading system for airlines on a trial basis first, to prevent carriers from buying up rights from power companies instead of tackling their own pollution problem.
"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 that if aviation eventually joined the full EU scheme, steps should be taken to ensure it did not distort trade among other sectors, for example by limiting the number of permits airlines are allowed to buy on the market.
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. A large majority in the parliament voted in favour.
The European Commission made a recommendation in September that all carriers taking off from an EU airport, regardless of nationality, should be included in the scheme. That proposal drew support from EU governments, which asked the Commission for draft legislation, with impact studies, by the end of 2006.
The parliament 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 (VAT), drawing harsh criticism from airlines.
"Any approach to aviation and the environment which calls for the simultaneous introduction of taxes on aviation fuel, VAT on airline tickets, environmental charges at airports and emissions trading scheme (ETS) totally ignores economic realities," Sylviane Lust, Director General of the International Air Carrier Association, said in a statement.
Andrew Sentance, Chief Economist at British Airways, said he disagreed with having a closed emissions scheme for his industry.
Airlines group IATA said the International Civil Aviation Organisation was working on a global solution to aviation pollution, which accounted for 2 percent of global greenhouse gas emissions. Greens parliamentarian Lucas told a news conference the range of proposed measures in her report would brake the industry's rapid growth.
Under the current emissions trading system, EU countries set limits on how much CO2 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.

Copyright Reuters, 2006

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