Finnair Sees Tens of Million Euros CO2 Costs from 2011
Date: 21-Dec-06
Country: FINLAND
Author: Sami Torma
The EU executive formally adopted a proposal earlier on Wednesday to include aviation in the trading system, giving international flights in and out of the EU a reprieve of a year before they have to join.
"We have been preparing (for) that, we are talking about costs of tens of millions of euros," Finnair's head of international relations, Kari Koli, told Reuters.
He said it was still difficult to estimate how many emissions credits Finnair would have to buy when the scheme begins, or what the cost of credits would be by then.
The European Commission said intra-European Union flights will join the scheme, aimed at cutting global air pollution, in 2011.
Koli said Finnair saw emissions trading as a key tool to addressing environmental concerns, but that the EU proposal would not apply globally and that there were elements likely to distort competition.
"We are worried that, as it only concerns the EU, and as we are in a global business, it will put us in a weaker position than airlines in third countries," Koli said.
"It (emissions trading) should be made into a global system."
Finnair spokesman Taneli Hassinen said it was impossible to estimate the potential impact on ticket prices, or to what extent Finnair would be able to pass the costs to passengers.
"Tickets are priced entirely based on the market situation," he told Reuters.
The EU emissions trading scheme -- its key tool to battle global warming and meet Kyoto Protocol emissions reduction targets -- currently puts a limit on the amount of carbon dioxide (CO2) industries like power plants and oil refineries can emit.
So far the scheme has excluded international aviation, which is a large and growing source of pollution as air travel booms.