Countries Consider Retaliation for Europe's Airline Emissions Fee

Excerpt from an article in The New York Times
Saturday, February 18, 2012

Countries Consider Retaliation for Europe’s Airline Emissions Fee 

By JAMES KANTER and NICOLA CLARK

BRUSSELS — China, the United States and two dozen other countries are looking at coordinated retaliation — including putting pressure on European airlines and other industries — if Europe tries to enforce a law requiring airlines to pay for their greenhouse gas emissions.

The system, the European Union’s boldest initiative on climate protection to date, has provoked a worldwide outcry and raised the unwelcome prospect of a full-scale trade war. European officials have stood firm while challenging opponents to suggest an equally effective alternative.

The European system requires an airline landing or taking off in Europe to acquire permits corresponding to the amount of greenhouse gases emitted during the entire flight — regardless of where it originated or ended or the nationality of the airline. The system went into effect this year, although the first payments will not be due until 2013.

Other governments have objected to Europe’s attempt to regulate emissions outside its airspace, while carriers like American Airlines and China Southern are furious because they could face big bills as the number of permits that they need to purchase rises.

In the latest of a series of meetings on the issue, officials from 26 governments will gather in Moscow on Tuesday to discuss a “basket of countermeasures” to block the European system, according to the draft agenda.

Those countermeasures include following China’s lead in banning its airlines from paying the charges unless and until the Chinese government grants permission; imposing punitive levies on European airlines when they fly over other countries’ airspace; reviewing bilateral and “open skies” agreements on landing rights, market access and other matters and freezing consideration of any new routes or capacity, according to a draft discussion paper.

In addition, the paper calls on governments to consider reopening trade agreements in sectors other than aviation and to freeze trade negotiations as a way of “putting pressure on E.U. industries.”

Ancient Italian Town Now Has Wind at Its Back

The following was gleaned from a September 28, 2010 New York Times article with the above title.  I believe it provides insight into why some European communities have found it economically feasible, even beneficial, to incorporate renewable energy into their energy mix while few American communities have found that to be the case.

Faced with sky-high electricity rates, small communities in Italy have turned to making renewable energy. More than 800 Italian communities now make more energy than they use because of the recent addition of renewable energy plants.

The Italian town of Tocco da Casauria was motivated to adopt renewable energy because Italy already had among the highest electricity rates in Europe, and nearly three times the average in the United States.

 High electricity prices in Italy are a result of various forces: Italy has almost no fossil fuels of its own, and until last year, it banned nuclear power plants.  And, as in much of Europe, the lure of alternative power here was sweetened by feed-in tariffs — government guarantees to buy renewable electricity at an attractive set price from any company, city or household that produces it.

In the United States, where electricity is cheap and government policy has favored setting minimum standards for the percentage of energy produced from renewable sources rather than direct economic incentives like Europe’s feed-in tariffs, stimulating alternative energy has been only mildly successful. But in countries where energy from fossil fuels is naturally expensive — or rendered so because of a carbon tax — and there is money to be made, renewable energy quickly starts to flow.

With its four wind turbines, Tocco is now essentially energy independent from a financial standpoint, generating 30 percent more electricity than it uses. Production of green electricity earned the town 170,000 euros, or more than $200,000, last year.

Impressed with their new turbines, Tocco’s residents have lately turned to renewable resources to resolve other civic problems.  An installation of solar panels now lights walkways, powers the office and generates an income of 1,500 euros a year, or $2,000, to pay for maintenance at the town’s ancient cemetary.

A growing number of wealthier homeowners are paying these experts to install solar panels. The stucco home of Domenico Marini, a dental technician, has roof panels in addition to a koi pond and garden gnomes. His monthly electricity bills have dropped to $0 from as much as $700.