BRUSSELS--The European Union, bowing to international pressure
and lobbying from the aviation industry, reversed plans to impose a
carbon charge on non-EU carriers operating long-haul flights in and
out of Europe.
Under an agreement reached late Tuesday, European airlines
operating in EU airspace will have to pay for CO2 by buying credits
through the European Emissions Trading Scheme. The 28-member bloc
also said it still would bring all airlines using European airports
into the ETS if no global agreement on airlines' carbon emissions
was reached by 2017.
The deal, which still must win approval from the European
Parliament, comes after years of debate during which the EU faced
threats of retaliatory measures from the U.S., China, Russia, India
and other countries.
The compromise marks a major reversal of earlier plans by the
European Commission, which had wanted to include all airlines
flying in and out of EU airspace into its ETS in a bid to make the
sector accountable for environmental damage.
"EU member states lost their nerve given the international
opposition, largely led by the U.S.," said Bill Hemmings of
Transport & Environment, a Brussels-based environmental group.
"It's very unfortunate that the European response has been a
continuous set of concessions."
Several EU officials said the outcome was also the result of
strong resistance by France, Germany and the U.K., where plane
maker Airbus Group NV has large operations. Airbus lobbied
aggressively for exemptions in the deal, in part because it was
pressed to do so by China, a major Airbus customer that has put
billions of dollars of plane purchases on hold because of its anger
over the EU's environmental plan.
"This was down to Airbus and Airbus states," one person involved
in the negotiations said.
The European Low Fares Airlines Association, which includes
Ryanair Holdings PLC and easyJet PLC, said it would call on the
European Parliament to reject the deal when the issue comes up for
a vote later this month.
It said the agreement meant that its members would be unfairly
penalized, as its carriers fly mainly in and out of EU countries,
while long-distance airlines, which cause 80% of EU aviation
emissions, are now exempt.
Environmental groups say aviation is the most carbon-intensive
mode of transportation, responsible for about 5% of man-made
climate change.
Peter Liese, the German lawmaker who is steering the legislation
through the parliament, said the compromise was "acceptable, though
it's not at all perfect." He said he would now focus on paving the
way for a global deal at the United Nations' airline body, the
International Civil Aviation Organization.
If the ICAO fails to come up with a plan in time for its general
assembly in September 2016, international airlines would then be
incorporated into the ETS in 2017.
"The positive thing is that there's a time bomb built in there,
so that if ICAO hasn't come up with something credible, the
commission could go back to its original plan," Mr. Hemmings said.
"But we've seen over the years how foreign opposition has swayed
discussions, and it's too early to say if ICAO will prove its
mettle."
Write to Vanessa Mock at vanessa.mock@wsj.com
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