On July 8, the European Parliament voted to expand the European Union Emissions Trading Scheme (EU ETS) to cover aviation emissions as of January 2012. Based on a 2006 European Commission proposal, the approved legislation will require all commercial airlines, regardless of country of origin, to purchase and surrender carbon emissions allowances for all flights within the EU or departing from or arriving at EU airports. Total emissions for the civil aviation industry in 2012 will be capped at 97% of historical emissions, defined as average emissions from 2004-2006. The cap will decrease in 2013 to 95% of historical emissions, with the option of further tightening after 2013. Initially, the EU will provide 85% of permits for free and auction the other 15%; the percentage of auctioned permits may rise in subsequent years.

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On June 26, 2008, the European Parliament and EU Member State negotiators agreed to expand the EU’s Emissions Trading System (ETS) to include emissions from civil aviation as of January 1, 2012. The Proposed Directive would include all flights by any airline to and from any EU airport, with limited exceptions. Total EU-wide aviation emissions for 2012 would be capped at 97% of average emissions from 2004-2006, with the cap reduced in successive years. 15% of total aviation emissions permits would be auctioned, and 85% would be allocated for free, although this ratio could also be adjusted in the future.

Last week’s agreement is the product of a series of compromises between the European Commission, the EU Parliament, and EU environmental ministers, resulting from intra-EU negotiations over the past several years. In order to become binding law under the EU’s “Co-Decision” procedures, the Proposed Directive must be supported by the EU Parliament (scheduled to vote on July 9), as well as Member State governments. Generally, these steps are a formality. Read the rest of this entry »

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The U.S. Department of Energy today announced three solicitations for a total of up to $30.5 billion in federal loan guarantees for projects that employ advanced energy technologies that avoid, reduce or sequester air pollutants or greenhouse gas emissions. The program will provide up to $18.5 billion to nuclear power facilities; $10 billion for energy efficiency, renewable energy and electric transmission projects; and $2 billion for the “front-end” of the nuclear fuel cycle, including uranium enrichment.

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California Attorney General Edmund G. Brown Jr. recently announced an agreement with the San Diego County Regional Airport Authority to reduce greenhouse gas (GHG) emissions from a major airport expansion project.

San Diego Airport is the busiest single-runway airport in the U.S. To accommodate anticipated future growth, the airport plans to add ten new gates, new overnight jet and passenger parking, and expanded aircraft taxiways.

To reduce GHG emissions, the airport agreed to a series of specific measures, including:

• preparing an inventory of GHG emissions from aircraft ground movement and reducing themby 20% by 2015;
• providing landside electrical power to aircraft to eliminate the need to run on-board engines to use electricity while on the ground;
• replacing existing tow vehicles and airport shuttles with electric or alternative fuel vehicles;
• using green construction methods, equipment, materials, and design in new construction; and
• requiring LEED Certification for all new facilities.

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Adding to the evolving debate on how and whether the US should regulate greenhouse gas (GHG) emissions from aircraft, the Environmental Protection Agency (EPA) announced plans to seek public comment on two petitions urging the Agency to curb aviation emissions, during recent testimony to the House Select Committee on Energy Independence and Global Warming.

The two petitions - one by a group of states including California and the other by a coalition of environmental groups - urge EPA to (1) determine that aircraft emissions cause or contribute to air pollution and endanger public health and (2) adopt regulations to control such emissions.

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This past weekend, the Guardian reported on a “green ultimatum” from the EU that could force US airlines to either capture the environmental costs of carbon emissions from aircraft or to face restrictions on flying permissions to EU airports.

According to the Guardian, EU Transportation Commissioner Jacques Barrot intends for the issue of carbon credits to play a significant role in the negotiation of a second phase of the EU-US Open Skies Agreement, a treaty that permits any EU airline and any US airline to fly between any point in the EU and any point in the US. The first phase of the agreement goes into effect on March 30, 2008, and discussions on the second phase are scheduled to begin in May 2008.

The Guardian notes that, under the Open Skies policy, “EU states can suspend flights from the US to Europe if insufficient progress is made on a second phase by 2010.” European air carriers have expressed competitiveness concerns over an EU Directive designed to progressively incorporate aviation emissions into the European emissions trading scheme — beginning with flights between EU airports in 2011 and expanding to any flight arriving at or departing from EU airports in 2012. The announcement by Mr. Barrot suggests that the EU may try to level the playing field for European carriers through multilateral treaties, in the absence of an international agreement on carbon emissions from civil aviation.

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