April 16, 2024

Europe Stands Firm on Airline Emissions, Raising Fears of a Trade Conflict

BRUSSELS — The European Commission said on Thursday that airlines that did not follow a new European law requiring them to account for their emissions of greenhouse gases could face being banned from European airports.

The warning was the latest stage in an escalating war of words between the European Union and countries like China, which have expressed fierce opposition to a law that represents the European Union’s boldest move to date to protect the climate.

The initiative went into effect at the start of the year and involves folding aviation into the European Union’s six-year-old Emissions Trading System, in which polluters can buy and sell a limited quantity of permits, each representing a ton of carbon dioxide.

A European ban on noncompliant airlines would be a measure of “very last resort” applicable only in cases of “continued noncompliance,” Isaac Valero-Ladron, the commission’s spokesman for climate action, said on Thursday at a news conference in Brussels.

Mr. Valero-Ladron said airlines would initially face fines by national authorities of 100 euros ($130) for each ton of carbon dioxide that they failed to account for under the permit system.

“We’re confident the companies will comply,” Mr. Valero-Ladron said. “The penalties for noncompliance are much higher than compliance.”

Even so, the Europeans and opponents of the system, including airlines and the authorities in China and the United States, will probably have to compromise at some stage to avoid the dispute turning into a disruptive trade war.

In the United States, the House of Representatives has already approved a bill that would bar American air carriers from participating in the system. A similar bill has been introduced in the Senate.

Airbus, the European aircraft maker, and the Association of European Airlines, an industry group, have raised concerns that a trade conflict with the United States and China could affect their businesses.

Earlier Thursday, a Chinese foreign ministry official reiterated a call for Europe to seek an international agreement on how to regulate emissions from the aviation sector before imposing “unilateral legislation,” The Associated Press reported from Beijing.

Chinese airlines have not yet decided whether to add a ticket surcharge to help offset the costs of the system or to refuse to pay the fines entirely. “It has not come to that stage yet,” said Chai Haibo, the deputy secretary-general of the China Air Transport Association, according to The Associated Press.

Chinese carriers have also threatened to bring a lawsuit, possibly in Germany, where the authorities will oversee the application of the system to several Chinese airlines.

But airlines do not need to hand over permits accounting for their emissions until April 30, 2013, and that could leave room for a compromise to be found over the next year.

Last month, the European Union’s highest tribunal, the European Court of Justice, rejected a complaint by a group of American airlines that had argued that requiring them to participate in the emissions-trading system infringed on national sovereignty and conflicted with existing international aviation treaties.

Article source: http://www.nytimes.com/2012/01/06/business/global/eu-toughens-stance-in-airline-carbon-dispute.html?partner=rss&emc=rss

Energy Demand Is Expected to Rise 53% by 2035

China and India will consume 31 percent of the world’s energy by 2035, up from 21 percent in 2008, the department’s International Energy Outlook projected. In 2035, Chinese energy demand will exceed that of the United States by 68 percent, it said.

“Economic growth continues to look good in emerging nations,” Howard K. Gruenspecht, acting administrator of the Energy Information Administration, said on Monday at a briefing in Washington.

Renewable sources will be the fastest-increasing energy category in the next 25 years, said the report, which was prepared by the information agency. Renewable energy demand will climb 2.8 percent a year over the period and will make up 15 percent of the total in 2035, up from 10 percent in 2008.

Crude oil prices will rise to $125 a barrel in 2035 in 2009 dollars, the agency estimated. In May 2010, when it last released an energy outlook, the department projected that oil would climb to $133 a barrel by 2035. Demand for petroleum and other liquid fuels will increase by 26.9 million barrels a day between 2008 and 2035, the new outlook said.

Global consumption of natural gas is forecast to rise 52 percent, to 169 trillion cubic feet, from 2008 to 2035. The growth in natural-gas demand will outpace demand growth for other fossil fuels.

Total energy demand will increase an average 1.6 percent from 2008 to 2035. Strong economic growth in developing countries will drive the gain, the outlook shows.

Energy-related emissions of carbon dioxide will rise 43 percent, to 43.2 billion metric tons, from 2008 to 2035, the report said. Much of the increase will occur in developing countries, it said.

The outlook “may overstate nuclear power’s future role” because it does not account for the reaction to the March disaster in Japan caused by an earthquake and a tsunami that caused meltdowns and radiation leaks at the Fukushima Daiichi nuclear plant, Mr. Gruenspecht said.

The report projected that nuclear power would almost double, to 4.9 trillion kilowatt-hours by 2035, from 2.6 trillion kilowatt-hours in 2008.

After the disaster in Japan, Germany said it would close its nuclear plants by 2022, and the United States Nuclear Regulatory Commission said it would consider new regulations for the 104 American commercial reactors.

Article source: http://feeds.nytimes.com/click.phdo?i=a5ef5b8ddb943a68e6612b258bcd54b6