Environment Minister Ian Pearson called US carrier Ryanair the “irresponsible face of capitalism” for opposing EU moves to tax airline carbon emissions. Ryanair’s stand is that it would undercut the income of low cost airlines such as themselves.
Ryanair also has answered that they have worked to reduce their emissions by 50% per passenger by upgrading their planes engines to that which is less polluting, which to them makes the labelling uncalled for. According to a graph from the department of transport, Airline emissions accounts for a huge chunk of pollution after automobiles. Ryanair’s competitor, Easyjet, was more supportive of the tax.
In 2011 airline flights across Europe will be subjected to Carbon Emissions Trading. In this scheme of carbon credit trading, airlines in Europe will be issued a pollution permit, if they exceed in their allowable emissions they will have to secure additional credits. If they reduce emissions however, they can sell the excess credits to other entities.
The US has already questioned whether it was legal to force carriers flying to the EU to be subjected to this scheme. Further reports indicate that the US carriers might even consider legal action. With only 2 countries not playing Kyoto Protocol Ball (US and Australia), I wonder how they will ever think of winning that? My take on this, when in Rome, do as the Romans do… just pay the Tax man. How is it going to cut into your profits?, considering that all airlines are subjected to it.
Original Article here and here
Category: Carbon Credits
