EU issues directive for aviation to join cap-and-trade in 2012; airlines protest hasty decision

In Belgium, the EU Justice and Home Affairs Council  approved a directive to include the aviation industry in the EU’s Emissions Trading Scheme as of 2012. EU member states now have 12 months to incorporate the directive into local laws. Under the directive, the aviation industry will have an emissions allowance cap at 97 percent of the average emissions between 2004 and 2006, rising to 95 percent in 2013. 85 percent of the allowances will be allocated for free, and the remaining 15 percent will be auctioned in 2012, with the free allocation being reduced to 80 percent in 2013. Airlines were aghast at what they termed a hasty adoption of the directive, which they say will cost the airlines more than $4 billion per year.

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