Travel Reference
In-Depth Information
government has yet to set a clear policy that relates to the reduction of emis-
sions through targets. However, individual US states have begun setting GHG
emission-reduction targets (Gössling, Hall and Lane, 2008). Australia is in the
process of developing an emissions trading scheme, the Carbon Pollution
Reduction Scheme, which is planned to include domestic aviation. However,
at the time of writing (December 2009), the Australian Senate had rejected the
Bill.
Emissions trading
The EU Emissions Trading Scheme (EU ETS), introduced as part of the process
of reducing EU emissions in 2005 (see Table 2.2), has significance for travel
and tourism at the current time (2009). Under the EU ETS, participating
industry sectors are allocated a carbon allowance, depending on their antici-
pated need. This allowance is capped. A proportion of the allowance is
allocated at no cost to companies. Companies are then driven to reduce emis-
sions, in which case they can auction any of their excess free allowance. If they
require more emissions permits, these must be purchased. To date this has had
limited implications for the tourism industry; however, in December 2006, the
EU Commission proposed the inclusion of aviation in the EU ETS. Within the
proposal, emissions from all domestic and international flights between EU
Table 2.2
The EU Emissions Trading Scheme
Background
IntroducedinJanuary2005asamechanismtoreduceEUGHGemissions.Theschemearosefrom
Directive2003/87/ECin2003.ItwasthefirstCO
2
emissionstradingschemeintheworldandwas
developedasamechanismtohelpEUcountriescomplywiththeKyotoProtocoltargets.
The mechanism
Participatingindustrysectorsareallocatedacarbonallowance,determinedbyeachmemberstate.
Theallocationisonthebasisofanticipatedneed.Theallowanceiscappedtostimulatereduction
inemissions.Aproportionoftheallowanceisallocatedatnocost,whiletheremainderof
emissionpermitsmustbepurchasedatauction.Companieswhomakeemissionscutsareableto
tradeanyexcesspermitsatauction.
Sectors covered
AnnexIofthedirectivespecifiesindustrysectorscoveredbytheETS.Theinitialschemeincluded
themainenergy-intensiveindustrysectorsthattogetheremitnearlyhalfofEurope'sCO
2
emissions.Theseincludeenergyproducers,ironandsteelplants,mineralindustries,andpulpand
paperindustries.
Inclusion of aviation
TheEUCommissionproposedtheinclusionofaviationintheschemeinDecember2006.TheEU
Directive2008/101/ECcameintoforceinFebruary2009.Emissionsfromalldomesticand
internationalflightsbetweenEUairportswillbecoveredfrom2011.From2012theschemewill
expandtoincludeallinternationalflightsarrivingatordepartingfromanEUairport.
Aviation permits
Permitswillbecappedat97percentofthe2004-05emissionlevelsin2012and95percentin
2013.Some85percentofpermitswillbefreelyallocated,withtheremaining15percentbeing
auctioned.
Source:
Duval,2009;EnvironmentAgency,2009;Europa,2009
