Credits, Auctions Part of Environment Legislation

A Senate committee is bringing reduction of greenhouse gases one step closer to reality for U.S. carriers as the Committee on Environment and Public Works is set to mark up legislation calling for reduction of GHGs. S.2919, America’s Climate Security Act, introduced by Connecticut’s Senators Joe Lieberm and Virginia’s John Warner, calls for a an emissions trading scheme allowing those who exceed their carbon limits could purchase credits from industries that more than meet their GHG emissions targets. Part of the bill calls for free credits to be distributed to industry for a grace period before establishing an auction system.
The move comes after Representative John Dingell (D-Mich.) proposed legislation calling for a tax of 50 cents a gallon on gas, including jet fuel, a $50 per ton carbon tax on burning oil, coal or natural gas along with reducing or eliminating interest tax deductions on 3,000+-square-foot homes. Industry opposes all three schemes saying voluntary efforts, such as those implemented in the past two decades by the aviation community that have cut GHGs by 70 percent.
But others are not waiting for legislation but rather petitioning the EPA to reduce emissions and targeting aviation as a major polluter, despite it stellar environment record compared to other transportation modes and power plants. A coalition of states, cities and environmental groups criticized the U.S. government for being the only developed nation refusing to sign the Kyoto Protocals, citing the fact that Australia’s ratification of the protocols recently. The coalition is now petitioning the U.S. Environmental Protection Agency to reduce a massive source of global warming pollution: emissions from the global aircraft fleet. The only problem is its definition of “massive.” U.S. airlines contribute only two percent to pollution compared to road traffic and power plants, the two toughest nuts to crack when it comes to stemming the tide of global warming. Indeed, aviation only accounts for two percent of emissions worldwide. Related Story