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Wed, May 23, 2012

Airlines From India And China Fail To Comply With EU Carbon Rules

EU Reports A 'Systematic Non-Reporting' Of Emissions Data

Airlines from India and China have failed to submit 2011 carbon dioxide emissions data in a challenge to European rules looking to expand the ETS. The European Commisson's website said that there has been "systematic non-reporting" of emissions data to and from Europe from ten airlines based in India and China. Europe's carbon program expanded last year to include airlines, who are required to submit last year's emissions data.

Bloomberg News reported that this inclusion of airlines into the ETS provoked opposition from several countries including the U.S., China and Russia who said the ICAO should have the final word on industry greenhouse gas limits. Eight Chinese airlines and two Indian carriers have until mid-June to submit last year's data, according to Connie Hedegaard, EU Climate Commissioner.

Deutsche Bank analyst Isabelle Curien said the airlines that didn't obey the rules probably won't be penalized, but the EU may be more strict next year. "The EU will be very, very flexible. Member States may be unwilling to instigate an operating ban" for airlines that fail to comply. This ban would restrict entry of airlines into Europe.

International carriers will be given emission permits comprising 85 percent of the 2012 industry cap, and will have to purchase the remaining 15 percent at auction. The permits can also be traded among airlines.

FMI: www.ec.europa.eu/clima/policies/ets/index_en.htm

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