Air cargo lobby group calls on EU to suspend ETS

The Global Air Cargo Advisory Group (GACAG) has called on the EU to suspend its controversial Emissions Trading Scheme (ETS) for aviation.

The industry advisory group, formed just over a year ago, believes the ETS will spark a divisive and ultimately costly dispute with the global aviation industry, including the air cargo sector.

Last month, the European Court of Justice rejected Airlines for America’s legal challenge to the unilateral application of the EU ETS, effectively paving the way for its implementation for the aviation sector this month.

The ETS levies a charge on flights entering or leaving EU airspace, based on their carbon emissions.

In 2011, the EU’s stated intention to apply the ETS drew challenges from many countries, including the US, India and China, on legal and policy grounds.  They have urged the EU to suspend the ETS and focus on multilateral efforts to develop international C02 emission standards within the ICAO. Chris Welsh, Secretary General of the Global Shippers’ Forum, one of GACAG’s four founding members, and Chairman of the GACAG Sustainability of the Air Cargo Industry Task Force, said: “The absence of an international framework will be chaotic and will unnecessarily cost the air cargo industry and its customers tens of millions of dollars at a time when the global economy is so fragile, and when every effort is being made to stimulate global demand.”

He added: “Worldwide demand for air cargo services, considered by economists to be a barometer of the state of the global economy, shows the recovery is weak. This is an indication that consumers simply will not be able to pay higher prices.

“The ETS will curtail investment by the air cargo industry that could otherwise be invested in new technologies and efficiency measures to reduce carbon emissions.”

GACAG members have highlighted key concerns about the ETS to the Climate Action Commissioner at the EU, stating it was in violation of international law and treaties.