EU gives airlines 85 percent free CO2 permits in 2012

Reuters: Airlines will receive 85 percent of their required carbon emission permits for free in 2012 -- the first year the sector is included in the EU’s emissions trading system (ETS) -- the bloc’s executive said.

The share of free allowances given to airlines will then fall to 82 percent in the third ETS trading period from 2013-2020, the European Commission said in a statement. “At current market prices these free allowances represent more that 20 billion euros over the decade. With these potential revenues, airlines could invest in modernizing their fleets, improving fuel efficiency and using non-fossil aviation fuel,” it said.