BRUSSELS: Airlines will have to buy pollution permits to fly in Europe from January 1 under a disputed EU system to fight climate change, but slumping carbon market prices could make the bill less painful.
The cap-and-trade scheme, which has angered the US and Chinese governments and airlines worldwide, comes into force on Sunday after the European Union's highest court rejected a challenge brought by US carriers this month.
The Airlines for America association grudgingly indicated that its members would abide by the EU law, but "under protest" while pursuing legal options. Chinese airlines plan to file a complaint in a German court this week.
For now, buying a permit through the EU Emissions Trading System (ETS) will be much cheaper than paying a fine for ignoring the rules.
Prices in the carbon market have fallen dramatically to eight euros ($10.4) per tonne of CO2, after fluctuating in the past few years between 15 and 25 euros.
Refusing to comply would cost an airline 100 euros per tonne, with the possibility of being denied the right to land in the 27-nation EU in extreme cases.
The cap-and-trade scheme, which has angered the US and Chinese governments and airlines worldwide, comes into force on Sunday after the European Union's highest court rejected a challenge brought by US carriers this month.
The Airlines for America association grudgingly indicated that its members would abide by the EU law, but "under protest" while pursuing legal options. Chinese airlines plan to file a complaint in a German court this week.
For now, buying a permit through the EU Emissions Trading System (ETS) will be much cheaper than paying a fine for ignoring the rules.
Prices in the carbon market have fallen dramatically to eight euros ($10.4) per tonne of CO2, after fluctuating in the past few years between 15 and 25 euros.
Refusing to comply would cost an airline 100 euros per tonne, with the possibility of being denied the right to land in the 27-nation EU in extreme cases.
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