Policy Brief Climate & Energy Program October 2012 Air - PDF document

Policy Brief Climate & Energy Program October 2012 Air Supremacy Summary: Aviation emissions are one of the fastest growing sources The Surprisingly Important Dogfight over of climate pollution and have Climate Pollution from International Aviation outsized climate consequences because they involve a potent mix by Nigel Purvis and Samuel Grausz of pollutants and because altitude magnifies their harmful impacts. Europe, spurred by a strong Introduction lenge and importance of bringing this awareness of the threat of climate Europe favors multilateralism, whereas dispute in for a safe landing. Failure to change, has grown impatient with the United States refuses to be tied do so would pose enormous risks not the slow pace of international down. Landmines, International only for transatlantic trade relations climate diplomacy and regulated Criminal Court, Kyoto, and so on — but also for the global climate and case closed. But wait, what’s this? In trade systems. emissions of all flights into and out the rapidly intensifying aerial dogfight of Europe. The United States and over regulating climate pollution from Essential Background other nations see in Europe’s move international civilian aviation, Europe a naked power grab with dangerous is flying alone while the United States For 15 years, nations have been consequences for non-European is demanding a globally negotiated debating what to do about climate airlines. Many of the prevailing feel- solution. What explains this unex- pollution from passenger aircraft in ings about this recent transatlantic pected role reversal? the International Civil Aviation Orga- turbulence rests on myths and nization (ICAO), the relevant global misconceptions. The persistence Simply put, Europe, spurred by a standard-setting body. Aviation emis- of these myths also explains why strong awareness of the threat of sions are one of the fastest growing few policymakers understand climate change, has grown under- sources of climate pollution and have the challenge and importance of standably impatient with the slow pace outsized climate consequences because bringing this dispute in for a safe of international climate diplomacy and they involve a potent mix of pollutants has taken matters into its own hands. and because altitude magnifies their landing. Failure to do so would pose harmful impacts. 1 Globally, aviation The United States and other nations, in enormous risks not only for transat- contrast, see in Europe’s move a naked emissions will grow by anywhere from lantic trade relations but also for the power grab with dangerous conse- 300 percent to 700 percent by 2050, global climate and trade systems. absent new pollution limits. 2 Reducing quences for non-European airlines and are pushing for an international climate pollution from international agreement to thwart European unilat- aviation, therefore, is a necessary eral measures. While these perceptions step in avoiding the disastrous conse- are easy to summarize, many of the quences of runaway climate change. prevailing feelings about this recent And yet, prior to 2012, no country had transatlantic turbulence rests on myths and misconceptions. The persistence 1 ICAO, “ICAO Environmental Report 2010” (2010), http:// 1744 R Street NW of these myths also explains why few www.icao.int/environmental-protection/Pages/EnvRe- Washington, DC 20009 port10.aspx. policymakers understand the chal- T 1 202 683 2650 2 Growth relative to 2006 emissions. F 1 202 265 1662 E info@gmfus.org

Climate & Energy Program Policy Brief The EU hoped this decision would imposed binding limits on climate pollution from the avia- tion sector. help Europe meet its international In the absence of progress at the global level, the European Union decided several years ago to regulate climate pollu- commitments to provide climate tion from all flights to, from, and within its territory as of January 1, 2012. 3 The EU also encouraged member states finance to developing nations and to allocate revenue raised from airlines to climate assis- tance programs for developing nations. The EU hoped this thus garner support for the new decision would help Europe meet its international commit- ments to provide climate finance to developing nations and thus garner support for the new law from least developed law from least developed nations. nations. Prior to this rule entering into force, U.S. airlines challenged U.S. Senate with unanimous support. 8 The two bills must be the measure in European courts. The U.S. carriers claimed that the EU law had unlawful extraterritorial impacts squared (likely meaning that the House will pass the Senate because it covers emissions on the whole flight and not just version) and the final measure must be submitted to the over European airspace. The European Court of Justice president for his signature. China has banned its airlines upheld the EU law 4 and the United States cried foul, in a from participating in the EU program without government rare moment of bipartisan agreement between the Obama approval, India is considering a similar ban on its airlines, administration and his Republican opponents in Congress. 5 and both countries have so far refused to allow their airlines to report their emissions to the European Union. 9 Also shortly before the EU regulations went into effect this year, the United States and 25 other nations — a group As the United States has yet to enact or implement its bill, dubbed the “coalition of the unwilling” — issued a public U.S. airlines continue to comply with the EU law under rebuke of Europe, describing the measure as “inconsistent protest. If the United States enables non-compliance by with the international legal regimes.” 6 Reinforcing this, U.S. carriers by implementing its law, then starting in April the U.S. House of Representatives passed a bill that would 2013 the EU will likely fine those companies €100 (approxi- effectively prohibit U.S. airlines from complying with the mately $125) for every ton of CO 2 they emit on flights to EU law, 7 and a similar bill, giving the Secretary of Trans- and from Europe, totaling roughly $22 billion over the next portation the power to impose this prohibition, cleared the eight years. The bill passed by the Senate could require U.S. taxpayers to reimburse airlines for this and other costs. 10 While this much is clear, much of what nations, industry, 3 Directive 2008/101/EC of the European Parliament and of the Council , 2008, http:// and climate advocates believe about the dispute in fact is eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:008:0003:0021:EN:PDF. inaccurate. Here are a few examples. 4 European Court of Justice, “Judgment of the Court in the Matter of Air Transport Associ- ation of America Et Al v Secretary of State for Energy and Climate Change,” December 21, 8 John Thune, The European Union Emissions Trading System Prohibition Act of 2011 , 2011, http://curia.europa.eu/juris/document/document.jsf?text=&docid=117193&pageI n.d., http://thomas.loc.gov/cgi-bin/bdquery/z?d112:s.01956. ndex=0&doclang=EN&mode=req&dir=&occ=first&part=1&cid=211542. 9 Bloomberg News, “10 Airlines Snub Europe’s Emissions Rule,” The New York 5 Mark Atwood and Elizabeth Wadsworth, “President Signs 2012 FAA Reauthorization Times , May 15, 2012, sec. Business Day / Global Business, http://www.nytimes. Act,” February 15, 2012, http://www.aviationlawadvisor.com/2012/02/15/president- com/2012/05/16/business/global/10-airlines-snub-europes-emissions-rule.html; Chris signs-2012-faa-reauthorization-act/; “U.S. Rejects EU Airline Carbon Rule,” BBC, Buckley, “China Bans Airlines from Joining EU Emissions Scheme,” Reuters (Beijing, December 21, 2011, sec. Business, http://www.bbc.co.uk/news/business-16282692. February 6, 2012), http://www.reuters.com/article/2012/02/06/us-china-eu-emissions- 6 “International Meeting of ICAO Council and Non-EU Member States on Inclusion of idUSTRE81500V20120206. Aviation in the EU ETS Held,” September 30, 2012, http://pib.nic.in/newsite/erelease. 10 Brad Plumer, “Are the U.S. and Europe headed for a trade war over airline carbon aspx?relid=76388. fees?” The Washington Post , September 25, 2012. http://www.washingtonpost.com/ 7 John Mica, H.R.2594 European Union Emissions Trading System Prohibition Act of blogs/ezra-klein/wp/2012/09/25/could-the-u-s-and-europe-start-a-trade-war-over-airline- 2011 , n.d., http://thomas.loc.gov/cgi-bin/bdquery/z?d112:h.r.2594. carbon-fees/?print=1. 2