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New proposal to reduce emissions in the airlines industry

9th October 2009 by Richard Gunawan

Increasing pressure to reduce carbon emissions appears to be creating a fissure in the traditionally unified international airline community.

Aviation experts have welcomed a new proposal from recently formed Aviation Global Deal (AGD), with many saying they believe the International Air Transport Association (IATA), the industry’s governing body and International Civil Aviation Organisation (ICAO), are unlikely to reach agreement with United Nations for Climate Change Convention (UNFCCC) in Copenhagen in December.

A fresh perspective on the increasingly divisive issue is needed, they say.

The AGD’s members –including prominent carriers such as Air France-KLM, British Airways and Cathay Pacific want to level the playing field and have submitted a proposal that would subject every airline to identical emission-reduction targets.

Presently, rapidly expanding budget airlines such as Air Asia, EasyJet and Ryanair are not members of IATA, precluding them from any deal the association may strike in Copenhagen, even though they are capturing an ever greater share of the air travel market.

While the AGD has put forward an alternative carbon-reduction programme, it says it will continue to support further dialogue with IATA, which claims that its members carry 93% of scheduled passenger traffic, and the International Civil Aviation Organisation.

The AGD was formally launched this year in Hong Kong.

Tony Tyler, the Chief Executive of Hong Kong-based Cathay, told delegates at the Greener Skies conference that emissions from international aviation must be tackled globally by a single, ‘sectoral’ agreement that would include all air-transport operators.

National and regional solutions will lead to a patchwork of conflicting and overlapping regulations, competitive distortion between carriers, high administration costs and higher fares to customers, he said.

As part of its proposal, the AGD wants to reduce net emissions to 2005 levels by 2020 and to achieve a 50-80% reduction by 2050. To achieve this objective, the airlines, ICAO and UNFCCC will set up binding target and emission allowances. To ensure a fair system, all airlines must submit their fuel purchases & its carbon content. Those airlines that exceed their emission allowances will buy carbon credits through the global carbon markets. The system will be similar to the EU-ETS and funds collected by the UN must be used for legitimate climate change initiatives in developing countries.

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