EU plan to restrict emissions permits

BRUSSELS, Belgium (AP) -- European Union lawmakers are seeking more restrictions on carbon emissions permits for airlines flying to and from the EU.

Members of the European Parliament's environment committee want 25 percent of permits to be auctioned, rather than the 10 percent proposed by the EU's 27 member states. They hope that reducing the number of permits that would be allocated to airlines for free would make it more expensive for airlines to pollute.

Airlines have yet to be included in the EU's carbon emissions trading program, which was introduced in 2005 and so far applies only to major manufacturing industries like steel as well as to power plants. Some critics of the plan, designed to help fight climate change, say too many permits were issued, giving companies little incentive to reduce pollution.

The lawmakers also want a binding pledge from governments to use revenue from the cap-and-trade program to offset the effects of climate change rather than boosting national budgets.

"For the international credibility of our program it's important to stress that we don't generate money for the finance ministers, we want to mitigate climate change. Otherwise it would be easy for third countries to argue we're adding just another tax," said German Conservative Peter Liese.

Liese, who is in charge of steering the legislation through the assembly, presented the committee's proposed amendments on Wednesday.

The emissions trading would set a limit on how much carbon dioxide airlines can release, allowing them to sell surplus permits if they fly less or use greener technology and punishing them with extra costs if they want to use more fuel. Each permit would be good for 1.1 ton (1 metric ton) of carbon dioxide per year.

Faced with higher fuel costs, some airlines are already cutting fuel consumption and carbon emissions by flying at slower speeds.

Liese repeated Europe's wish for a global agreement on aircraft emissions even though efforts to date have failed to reach a deal. He said aides to all three U.S. presidential candidates -- Senators John McCain, Barack Obama and Hillary Rodham Clinton -- have told him they favor introducing a U.S. cap-and-trade bill that would include aviation.

Liese said parliament's environment committee also wants the proceeds from emissions permits auctions to help pay for more environmentally friendly modes of transport, such as trains.

Lawmakers also want airlines to start trading carbon emissions permits from 2011 -- a year earlier than the date proposed by EU governments. The entire 785-member EU assembly is to vote on the proposed amendments in a second reading before the summer recess.

Under the original proposal, non-EU airlines would have an extra year to adjust to the cap-and-trade plan, but EU environment ministers have said there should be a single start date for all airlines. U.S. officials have said a single start date would spark a trade war.

EU nations said the first year's cap should be based on average yearly emissions between 2004 and 2006, a level airlines have complained about because aviation has grown since then.

Airlines say the tighter limits would burden them with extra costs of 4 billion euros ($6.21 billion) a year and wipe out potential future profits and growth.

Aviation is expanding rapidly -- particularly in Europe where low-fare airlines have encouraged people to fly more often and in greater numbers.

Overall carbon emissions are increasing, though air transport releases far less than major carbon polluters in the power generation sector. Airline emissions, however, may prove more damaging because they are released high into the atmosphere.

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