Canada’s aviation policy under review

Canada’s aviation policy under review
– 12 April 2016 – Las Vegas (CAPA).



The Bali ‘conference’/’summit’ has completed, where some say the conclusions drawn have little, if any, teeth in terms of reducing CO2 emissions, but the bigger story is how EU Ministers have finally agreed on a roadmap for the inclusion of aviation in the EU ETS. The Environmental Council agreed:

  • All airlines flying into and out of the EU must join the scheme in 2012
  • All airlines will be required to maintain emissions levels at the average of 2004-2006 levels
  • 90% of permits will be provided free
  • Sales from emissions allowances (i.e., if an airline does not require the full amount of credits provided) “should” be used for mitigation measures
  • This only covers CO2, as other noxious gases (in particular NOx) are excluded
  • Airlines with reasonably low operating frequencies (i.e., from developing countries) will be exempt
  • A total of 3% of total permit reserves will be set aside and distributed free to new entrants

The full report can be downloaded here. See also the reaction from the Association of European Airlines and some interesting criticism from the World Development Movement. T&E and CAN-E are arguing that the plan could hamper international emissions targets overall, and the WWF isn’t terribly happy.

What is to follow? The U.S. has made it very clear that forcing the inclusion of its carriers into the ETS contravenes existing rules of trade, particularly the numerous air service agreements with multiple EU countries. Individual carriers will be watched to determine if changes to networks result from this decision.