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Indian and Chinese airlines risk penalties for EU ETS non-compliance

21 May 2012

Ten airlines from China and India risk being penalised for non-compliance of EU Emissions Trading System (ETS) obligations, states EU spokesperson for Climate Action, Isaac Valero-Ladron.

According to the emissions trading annual compliance round-up, released by the European Commission, “there has been systematic non-reporting of 2011 emissions from flights to or from EU airports by airlines based in China and India.”

While these 10 airlines – two from India and eight from China – account for “less than three per cent of emissions” under the purview of the scheme, authorities have contacted the relevant airlines to remind them to report their emissions data. “They have been given until mid-June to report back,” said Valero-Ladron. “In case of non-compliances, Member States may apply penalties to non-compliant airlines.” These penalties vary between Member States, but the fines will be lower than those imposed by the 2012 reporting obligations.

The 2011 emissions data were due to be submitted by March 31, 2012. Though airlines have been asked to report emissions, they do not require “emission allowances to be handed in” yet as the aviation industry was only included in the cap-and-trade scheme from January this year. “The reporting requirement was introduced in the ETS Directive in order to allow for a practical experience ahead of next year,” added Valero-Ladron.

China and India are among several nations around the world that have expressed their clear opposition to the inclusion of aviation in the ETS (see story here) and have since separately announced that they will adopt measures to undermine the controversial scheme (see story here).

For a detailed look into the EU ETS, view our feature here from the Business Traveller Asia-Pacific January/February 2012 issue. 

Alisha Haridasani

 

 

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