The European Regions Airline Association (ERA) estimates the cost of Emissions Trading for European airlines at €7bn in the first two years of the scheme, increasing progressively as the scheme continues. Estimated total costs over the 10 years to 2022 are €90bn. The European Parliament, which voted on a compromise agreement with the European Council today, has no idea what the economic or social cost of the proposals will be and, even less so, their environmental impact.

Although the revised agreement contains some welcome amendments from the European Parliament’s (EP) original proposal, the additional cost which ETS will place on airlines is likely to severely hinder or even eliminate their ability to invest in more fuel efficient aircraft. Together with astronomical fuel prices, the added burden of ETS and the “credit crunch” effect will make it impossible to recover costs through air fares. It is inevitable that some airlines will fail as a result of this legislation. European job losses will be significant and unavoidable.

ERA Director General, Mike Ambrose says: “To their great credit, the Council and many members of the European Parliament rejected the earlier proposals of the European Parliament’s ENVI Committee, nevertheless this legislation will impose massive additional costs on a transport industry that already has to bear unprecedented fuel costs. Even if the legislation’s questionable environmental benefits are ignored, it is a mark of failure of the legislative process that this legislation has been adopted without a thorough assessment of its economic and social impact: this is not responsible law-making. That this legislation has been adopted without meaningful assessment of the jobs that will be put at risk and the communities that will be denied international access is inexcusable: that neither the Parliament nor the Council seems to care is indefensible.”