Market News

 August 24, 2009
EU tells dirty airlines to clean up or face penalites

 The European Union has taken a stand against large global airlines by publishing a list of nearly 4,000 companies that must reduce their impact on the atmosphere or face a European airport ban.  

A new EU target, adopted this year, requires that airline emissions in Europe drop by three percent by 2012, and five percent by 2013.  

In order to meet the target, airlines named on the new list published on Saturday in the Official Journal of the European Union must reduce their emissions or face penalties.  

The list includes transportation giants such as Lufthansa, Alitalia, Quantas, KLM, Emirates, US Airways and United as well as manufacturers Airbus and Dassault, hundreds of private business jet operators, the US Navy and the air forces of Israel and Russia.  

Aircraft emissions currently represent three percent of Europe’s CO2 output

Pressure from the industry  

The EU adopted its new policy in January despite coming under fierce pressure from the majority of International Civil Aviation Organization (ICAO) member countries and companies belonging to the International Air Transport Association (IATA).  

A new European law is to come into force on Jan. 1, 2012, under which all airlines - both European and non-European - operating within Europe would have to limit CO2 emissions or face being barred from European airports.  

The EU also plans to introduce an emissions trading scheme by which companies that do not meet targets can buy permits from the European market or invest in clean development systems.

For More Information: Deutsche Welle