Europe needs to step back from 'disastrous' ETS stance

Addressing the Association of Asia Pacific Airlines in Seoul last Friday, European Parliament member Brian Simpson said that the uncompromising stance of the EU on its imminent Emmissions Trading Scheme will lead to a disastrous global trade war.

Simpson (pictured), who is also chairman of Europe's Transport Committee, said that Europe believed that most countries would fall into line with its ETS when it came time to pay up.

Here's the central part of his message to the Asian airline executives in Seoul

The deadline for the implementation of the European Union ETS of 1^st January 2012 is fast approaching, with the EU and the rest of the world on a collision course that could precipitate a trade war which in these times of economic crisis would be disastrous for all concerned.

We have a situation at the moment which sees the United States, Russia, China and India campaigning vigorously against the introduction of ETS. And yet, within the EU governments there are those who are keen to press ahead – because they desperately need the money.

But they won’t say that… They will claim it’s to help the environment. Just as they do with the passenger duty (tax)… but let’s be under no illusions here, both ETS and APD are being used as revenue streams for hard-up governments, not as they would have you believe for environmentally protective measures.

If the member states of the EU want to enhance environmental protection then they should press on with the single-sky (SESAR), instead of prevaricating and defending national interest to the detriment of both the environment and the wider aviation industry.

Three weeks ago I wrote to the climate change commissioner – and last week we met for what diplomats might call a full and frank discussion. My letter pointed out that in regard to ETS we were running out of time if we were to avoid a dispute with the rest of the world. I asked what was Plan B if the major aviation nations told Europe what they really thought of their ETS and refused to cooperate. I can tell you today that th Climate Change Commissioner has no Plan B.

I offered her my Plan B, which is that airlines only pay EU ETS when they enter EU airspace, but this was turned down.

But I leave this suggestion on the table in the hope that member states – and other governments – might take up the option as a way forward pending a global agreement…

There are those, both inside and outside the European Parliament, who actually think this scheme is wonderful and it should be strengthened; and that we should stand firm against the bullying against the threats of the USA, Russia and China. The Commissioner herself pointed out to me that China threatened not to buy Airbus aircraft over this issue, but then did.

So the belief is widespread that come the 1^st of January Russia, China and India, all except the USA, will comply, along with the rest of the world, leaving the US isolated. That’s the mentality presently in the Commission…

For me it’s a dangerous game. It’s bluff and double bluff. And it has the EU and the rest of the word staring into each others eyes wondering who will blink first.

Clearly a global solution is the best option, but that’s still at least two years away.

I believe that my Plan B could avert disaster, maintain honour on both sides, give us a breathing space for that global solution, and help the airlines at this difficult time…

Simpson was adamant that ICAO was the proper forum for deriving a global solution to emissions taxes, but was moving way too slowly. He described ICAO as one of the "slowest moving international organizations ever invented".

With that January 1 date looming, it's not a pretty picture