Ernst & Young Study on the "Inclusion of Aviation in the EU ETS: Cases for Carbon Leakage" - Executive Summary
This study has been conducted at the request of the following airline associations: Association of European Airlines (AEA), European Regions Airline Association (ERA),
European Cargo Alliance (ECA) and International Air Carrier Association (IACA)
The report concludes that:
• Auctioning of CO2 allowances will lead to
-a substantial increase in costs for airlines,
-a substantial decrease in their profitability
-hence, a substantial reduction in their investment ability
• the inclusion of the aviation sector in the EU ETS will have a significant impact on its market
• a significant risk exists that the ETS will lead to a transfer of passengers from EU to non-EU airlines
• possibilities to reduce CO2 emissions through technology are very limited
• a high level of auctioning will have a severe impact on the EU?s competitiveness at large, as well as on its tourism sector and its mobility
For a full copy of the report, please contact the IACA Secretariat on +32 2 546 1060 or email: amy.spenlove-brown@iaca.be
Author:
Publication Date: 18 Nov 2008
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