EU to impose extra fees on heavy GHG emission airlines

BANGKOK, December 13 (TNA) - The Thai Ministry of Commerce has announced that the European Union (EU) will, from January 1, 2012, impose an extra fee on each inbound or outbound flight which emits greenhouse gases (GHG) exceeding its quota granted by the 27-member EU bloc under the European Economic Agreement (EEA). Srirat Rastapana, Director General of the ministry's Department of Trade Negotiations, told reporters that it is the first time the EU enforces an environmental measure in its air transport sector, requiring all flights flying to and from the EU sky, operated by both EU or non-EU airlines, to be equally levied for the extra fee for the first time if any of them releases GHG emissions to a level exceeding its quota. Srirat cautioned that the new, but considered unilateral, EU measure will considerably raise operational costs of the international airlines and air freight shipping firms, which are believed to eventually transfer their increased financial burden to passengers and customers, through airfare and air freight price hikes, including those in Thailand. According to the senior official, in case of Thailand, the new EU measure will likely affect competitiveness of Thai products exported to the EU market and, probably, the Thai tourism sector. The senior Thai Commerce Ministry official acknowledged that the EU has played its leading role in international campaigns on reducing GHG emissions to ease the global warming problem or climate change and in developing and introducing a carbon emission trading scheme--under which each flight of any airline which emits GHG less than its quota will be able to sell the remaining quota to other flights operated by other airlines through auctions, but for flights emitting GHG higher than their quota will be, on the other hand, penalized and may be banned from operating in the EU sky. (TNA)