When Congress returns for their lame duck session after the elections, we are working to ensure a quick House vote on S 1956- The European Union Emissions Trading Scheme Prohibition Act (EU ETS), which provides the DOT the authority to protect aircraft operators and their employees from the market-distorting effects of the EU ETS. We urge ALPA members to pay close attention to this blog, the ALPA website and your email for your opportunity to take action on this important issue.
ALPA worked with air carriers, GA and aviation manufacturing industries to promote. S 1956, which represents a compromise which includes input from stalwart supporters of environmental protection like Senators Barbara Boxer, John Kerry, Jeff Merkley and Ben Cardin. The bipartisan sponsors of S 1956, Senators John Thune (R-SD) and Claire McCaskill (D-MO) worked tirelessly to negotiate a meaningful compromise which ultimately passed the Senate by voice vote.
ALPA has major concerns with the legality of the scheme itself and the infringement on our sovereignty. We have also expressed our deep skepticism of the projected financial implications for the aviation industry. We have cautioned Congress that the EU is allowed to manipulate their carbon market whenever they wish and that this will lead to much higher costs for our industry without any requirement that states use the money for reducing emissions. The EU is looking at ways to boost carbon prices and/or cut the number of free emissions.
A Bloomberg article published yesterday once again validates our skepticism. If the EU manipulates its own carbon market to the point where the price of carbon merely equals its pre-recession level, the estimated cost to aviation will quadruple. To put this estimated cost into perspective, it’s the equivalent of buying approximately 70 Boeing Dreamliners. A 787 Dreamliner will cut fuel consumption by an estimated 20% while creating thousands of good aerospace jobs. The money collected under the EU ETS is not earmarked for any activity which reduces fuel consumption or increases investment in the aviation industry.