Each year, companies are allotted a certain number of coupons or allowances. These allowances represent a certain number of green house gases that the company can produce for the year. If the company uses less than the amount of allowance they have, they can then sell the remaining allowances to other companies who might go over their allowance. However, if the company produces more green house gases than their allowances dictate, they must pay a fine.
So... how does this help the environment? Well, each year, companies allowances are lowered. This encourages companies to find more "green" ways of operation. According to the European Commission, this trading system provides the same benefits to society, at a lower cost than taxes.
This has caused much controversy with non-European countries such as the United States. If the European Union gets it how they want it, Airlines of the United States will have to pay into this while counting emissions that are put out on flights that are enroute to Europe, not just the portion of the flight that is in European Airspace. This of course has enraged the United States government, which believes it is ridiculous for the European Union to force non-European airlines from paying while not in European airspace.
I believe that the European Union has all the right to tax non-European airlines to fly into Europe, however it i ridiculous for them to charge while not flying in European airspace. Additionally, Europe better believe that other countries are going to counter these fees with fee of their own.
About the aviation pollutions and green house gases. Efficient engines and aircraft are great and are a necessity of the future, however the way that the European Union is trying to force "green" is simply not right.
I agree with you, Ryan. The fees imposed by every country could get out of control. We need to focus more on new technology.
ReplyDeleteI think the question of how the EU-ETS helps the environment is still open for debate. It is a very long-term plan, and even if it works, it might just cause dirty industry to move to places outside of the EU.
ReplyDeleteRobert, yes, I think that is a possibility. Hmmm...what if that same concept is applied to the airlines world? I wonder how that would play out economically?
ReplyDeleteEveryone says they are charging foreign airlines a certain amount I wonder if someone could figure out how much it actually costs to fly one typical flight into the EU.
ReplyDeleteI completely agree. The EU should not be the driving force for everyone's compliance in greenhouse gas emissions control. They should definitely contribute, but each nation has its own responsibility.
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