Monday, November 28, 2011

Despite protests, EU goes ahead with emission cap for airlines

New Delhi: From January 1 all airlines flying in and out of the European Union will need to meet a specific carbon emission requirement. Though protests have been voiced from various countries, the European Union is going ahead with the emission caps for the airlines.
A senior oil industry official said, “We are at present producing jet fuels which meets the specifications laid out. Currently, there is no communications for any change in these specifications like was in the case of auto fuels – up gradation to Euro I-IV.”
However, tomorrow if there is any change proposed then the refiners will need to upgrade the quality. The refiners also export jet fuel. In 2010-11 the refiners exported 4.48 million tonne of jet fuel.
The norms are more for the airline than the refiners, industry sources say. Indian carriers operating to Europe are likely to see their costs rise by €50-60 million annually. “This figure is likely to rise as airlines expand operations to more countries in Europe,” said a senior airline official.
This is because from January 1, the legislation to include aviation emissions in the Emissions Trading Scheme (ETS) comes into force. Emissions from aviation currently account for just 2-3 per cent of global greenhouse gas emissions but they are set to grow very rapidly.
27/11/11 Richa Mishra/Ashwini Phadnis/Shishir Sinha/Business Line
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