GACAG calls for ETS suspension

10 / 01 / 2012

IN a last desperate attempt the Global Air Cargo Advisory Group (GACAG) has urged the EU to reconsider its EU Emissions Trading Scheme (ETS) scheduled to take effect this month.

Under the scheme EU law makes a provision to enforce fines of €100 (US$128) for each tonne of carbon dioxide emitted for which airlines have not surrendered carbon allowances.

“The absence of an international framework will unnecessarily cost the air cargo industry and its customers tens of millions of dollars,” Chris Welsh, secretary general of the Global Shippers’ Forum and chairman of GACAG Sustainability, Air Cargo Industry Task Force, says.

“Worldwide demand for air cargo services shows the recovery is weak,” Welsh continues. “This is an indication that consumers simply will not be able to pay higher prices. This will have a direct impact on manufacturers, growers and the entire freight forwarding and logistics industry. The EU needs to fully evaluate the wider economic consequences of its actions before pressing ahead with the EU ETS.”

GACAG joins the likes of the Chinese and Indian governments and Airlines for America (A4A) in rebuking this move. A4A lost its legal challenge against the unilateral application of the ETS to international aviation in a European Court of Justice decision on 21 December 2011.