Airline concern over entry into the ETS

The airline industry is concerned that the allocation of permits under the EU’s Emissions Trading Scheme (ETSⁱ) will lead to significant trade distortion. They are also concerned about a Commission official statement that travel disruptions caused by volcanic ash would only have a small impact on the distribution of carbon allowances for the sector. The aviation sector is scheduled to join the ETS in 2012. While its total emission cap for 2012 will be based on average emissions in 2004-6, the share of allowances going to airlines for the period 2012-2020 will depend on their activity in 2010. The airline industry says that this is unfair, given that many firms have suffered from a significant drop in activity.

A press release from the Association of European Airlines can be found here:
http://files.aea.be/News/PR/Pr10-025.pdf