EU lawmakers approve deal on airline CO2 emissions

By Pete Harrison

STRASBOURG, France (Reuters) - To howls of protest from airlines, European Union lawmakers approved a deal with governments on Tuesday to include aviation from 2012 in the EU's Emission Trading Scheme, a key tool to fight climate change.

Aviation generates 3 percent of all carbon dioxide emissions in the 27-member bloc but has been left out of the ETS so far because of concerns that its inclusion would damage the industry's ability to compete in international markets.

With air traffic set to double by 2020, however, Europe is keen to apply the "polluter pays" principle as it struggles to reduce output of greenhouse gases blamed for global warming.

The European Parliament voted 640 to 30 in favor of a rule that airlines would have to cut emissions of carbon dioxide by 3 percent in the first year, and by 5 percent from 2013 onwards, paying for 15 percent of their emissions permits initially.

The vote was the last step to turn the proposals into law. The system will apply to all airlines flying into and out of the 27-nation EU, including non-European carriers.

A spokesman for German airline Lufthansa, one of Europe's biggest flag carriers, said: "From our perspective, the Emission Trading Scheme is ecologically counter-productive and economically harmful."

Lufthansa estimates the scheme as approved will distort competition and cost it hundreds of millions of euros a year from 2012, he said.

DEARER AIR TRAVEL?  Continued...