Lufthansa Customers to Pay for ETS
German airline Lufthansa will pass the extra cost that the European Union’s emissions trading system will add to its operation onto customers’ ticket prices, it has announced.
Lufthansa anticipates total additional charges of €130 million ($170 million) in 2012 as a result of the tariffs and says the ETS distorts international competition and undermines the sustainability of air transport.
Under the ETS, EU airlines will have specific CO2 allocations and will pay a penalty of €100 for every additional ton of CO2 emitted. As reported earlier, the limits will apply not only to European businesses but to others, such as AMR’s American Airlines, that operate flights in Europe.
In 2012, the ETS will give airlines operating in Europe 82 percent of the CO2 emissions right certificates they require free of charge. An additional 15 percent will have to be purchased by the airlines. But Lufthansa has calculated that it will need to purchase at least 35 percent of the certificates it needs, to reflect its growth in recent years.
In December, United/Continental Airlines and American Airlines failed in an attempt to block the introduction of the law that includes the aviation industry in the ETS. The aviation industry’s inclusion in the ETS took effect, as planned, on 1 January 2012.
Stay Up-to-Date On Environmental Management, Energy & Sustainability News with EL's Free Daily Newsletter
Energy Manager News
- Energy Storage in the Fast Lane
- Alberta Firm Aims for Energy Neutral Egg Laying Barn
- The Department of Energy Seeks to Improve the Better Buildings Challenge
- Behind the Meter: The Many Advantages of Energy Benchmarking
- Telecommunications Companies Upgrade Their Approaches to Energy
- Cutting Energy Use in Fire Stations
- Revolution Lighting Signs School Districts in NY, NJ
- Green Building Boom Is Pumping Billions into US Economy, Retrofits Are Fueling the Trend