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EU ETS and AVIATION . Fasten your seatbelt, turbulent times ahead. Suzy Huber CLEER Workshop: EU Environmental Norms and Third Countries: The EU as Global Role Model? TMC Asser Institute, The Hague 19 April 2013. Content. Why and how did the EU include aviation in ETS? - PowerPoint PPT Presentation
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EU ETS and AVIATION Fasten your seatbelt, turbulent times ahead
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Suzy Huber
CLEER Workshop: EU Environmental Norms and Third Countries: The EU as Global Role Model? TMC Asser Institute, The Hague19 April 2013
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Content
1. Why and how did the EU include aviation
in ETS?2. A Stormy Reception: the International Response3. The EU Under Pressure: Stop the Clock!4. EU as global role model?
Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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1. The path to include aviation in EU ETS
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Steps to Aviation ETS
Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
1997
1998
2001
2004 200
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2007 200
82009
2012
2010
Commission proposal
Kyoto Protocol
ICAO Assembly
ICAO Assembly
ICAO Assembly: no new legal instrument
ICAO Assembly: opposition to ETS without “mutual agreement” (Reservation made by EU)
ICAO Assembly
EU Directive agreed upon
Implementation Start of first trading year
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Reasons why the EU included aviation in ETSLack of action in ICAO EU emissions from international
flights are increasing fast - have doubled since 1990
No quick and easy technical solution (efficient aircrafts, improving air traffic management, fuel taxation)
ETS = cost effective
Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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Emissions Trading Scheme (Cap and Trade)
Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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How is aviation included in EU ETS?- Aviation cap has potential reduction of
29-46% below BAU by 2020Big environmental impact!
- 82% of the cap is distributed as free allowances
Modest impact on ticket price!- All aircraft operators that fly to and from
EU territory must monitor and report their emissions over the whole trajectory of the flight and surrender allowances every year to cover these emissions
Non-discriminatory!Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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How is aviation included cont’d- Auction revenues for climate change
action in developing countriesCommon But Differentiated
Responsibilities! - Exemption if third country takes
equivalent measures There is a way out!
Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
9 Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
Source: openflights.org - Aviation ETS covers almost 60 per cent of
international aviation emissions.
Significance of the inclusion of aviation in EU ETS
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2. A Stormy Reception: the International Response
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ATAA legal challenge2010: Air Transport Association of America and others challenged the validity of the Directive- 3 main arguments were put forward:1. the EU went beyond its jurisdiction by taking into account the part of the flights outside EU airspace2. the EU does not have the mandate, should be based on mutual agreement through ICAO 3. EU ETS amounts to a tax or charge on fuel, which is prohibited by aviation treaties
Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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European Court Ruling
The Court rejected all 3 arguments.- States may choose to apply
standards to activities that take place on their territory
- Environmental protection calls for measures that take extraterritorial events into account
- ICAO does not have exclusive mandate
- ETS is not a taxClimate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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Increasing Political and Economic Pressure- China ‘blocks’ Hong Kong Airlines’ order of ten A380s
from Airbus, - Chinese aircraft carriers are forbidden from complying
with EU ETS- Russian Federation threatens to deny EU trans-
Siberia route, actually denies Finnair new landing rights- A bill is introduced in US Congress, that prohibits
American airlines from complying with EU ETS- Dec 2011: Strongly worded letter from US Secretary of
State Clinton and Transportation Secretary LaHood to EU Member States. “The EU is increasingly isolated on this issue”. Threaten to “respond appropriately”
Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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Coalition of the Unwilling: strange bedfellows- “Coalition of the Unwilling”: United States,
China, Russian Federation, Brazil, India, Japan, South Korea, Saudi Arabia, Singapore, and others
- Meetings in Sept 2011, February and July 2012- Declaration of Sept 2011 which condemned
the EU aviation ETS as illegal under int law, was later adopted by the ICAO Council.
- February 2011: drafted a suite of countermeasures, but no coordinated countermeasure could be agreed upon. Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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3. The EU Under Pressure
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STOP THE CLOCK PROPOSAL November 2012 Due to “encouraging results” achieved by the ICAO Council:• European Commission proposed to ‘suspend’
aviation ETS on all international flights for one year
• Allow for a global solution to be taken by ICAO Assembly in September 2013 (triennial meeting).
• Note: the scheme still applies to INTRA-European flights to all aircraft operatorsClimate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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International reaction to ‘stop the clock’ - “China welcomes the EU’s decision … but does
not accept the practice of applying the system to foreign flights within Europe. China expects the EU to take a constructive attitude and work with other parties to settle differences properly.” (Chinese Foreign Ministry spokesperson)
- 2 weeks AFTER ‘stop the clock’ announcement, Obama signs the European Union Emissions Trading Scheme Prohibition Act
Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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What will ‘stop the clock’ achieve? - Has ‘stop the clock’ had the
desired/intended effect? - Pressure on the ICAO process:
temporarily lifted? Or increased? - What can we expect from ICAO Assembly
in September? A global scheme certainly won’t go into effect by 2014.
- Even if agreement is reached within ICAO, how will the EU bridge the gap?
Climate Focus, April 19 2013 EU ETS and Aviation, Suzy Huber
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4. EU as global role model?
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Tension in international norms
Aviation ETS exposes the tension in international norms:- Environmental efficiency versus
sovereignty (fear of unilateralism)- Non-discrimination in civil aviation
versus Common but Differentiated Responsibilities and Respective Capabilities
Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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EU’s high stakes experiment
Is unilateralism justified when multilateralism fails? Urgency But, danger of fragmentation Has the EU’s approach been effective? Progress in ICAO(?) Time is running out! Look out for ICAO
Assembly September 2013 Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
22 Climate Focus, 19 April 2013 EU ETS and Aviation, Suzy Huber
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Thank you
Suzy Huber – Legal CounselClimate Focuswww.climatefocus.coms.huber@climatefocus.com
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