Aviation recognises that it needs to contribute towards tackling climate change and is working towards minimising its impact on the environment.
British Airways has provided long-standing support for the inclusion of aviation in the EU Emissions Trading Scheme.
The original proposals have been made more financially burdensome for airlines, by increasing the proportion of carbon allowances that are subject to auctioning and lowering the cap on 'free' allowances.
The proposed changes are estimated to increase the cost of the scheme for EU airlines as a whole, from £36 billion to £91 billion over the first 11 years.
We have concerns about the imposition of this scheme on foreign airlines flying into the EU. We believe it will lead to a negative legal battle at a time when we need a constructive debate on a global solution.
If implemented as it now stands, without a global solution for aviation in place, the scheme will lead to a significant competitive disadvantage for EU airlines, resulting in job losses and a reduction in services as international passengers by-pass European hubs.
It would be far better to implement this scheme initially for intra-EU flights only, and to widen it to intercontinental flights when a global scheme that includes aviation is in place.
While we support the principle of the Emissions Trading Scheme, we believe the scheme should be based on a straightforward cap and trade system, and should replace existing so-called green taxes, such as Air Passenger Duty and its proposed Aviation Duty successor.
So we hope sensible decisions are made in Brussels and we can start in 2012 with an emissions trading scheme that quickly becomes the model for the rest of the world to follow.