European Union’s Transport Challenge

As of New Year 2012, Europe has proposed three very wise initiatives in the green transport spectrum –

a)      Levy a charge on foreign airline emissions flying to and fro the Union

b)      Reduce overall carbon intensity of the region by 6% by 2020

c)      Aim to implement total of 10% green fuel for transport sector by 2020 including hydrogen, electricity and biofuels. 

Now, what is the reason for world governments and energy companies to detest such foresight?

Future of European Aviation

There is a thin link between the three goals. Air transport emissions contribute to a total of 2-3% of global carbon emissions. In order to minimise the scale of these emissions the European Union Emission Trading Scheme objectives come into play. Hereby, following a cap and trade system, European transport emissions can be minimized. Foreign airlines would be forced to buy carbon credits. A charge on foreign airline emissions has been taken as an insult by foreign governments. Also, airlines are required to reduce emissions by 3% by 2012 and 5% by 2013. The implementation and inclusion of aviation industry in the ETS would cost the industry four billion Euros by 2020. This is a crucial step as 21% of EU emissions are from the transport sector.

Another objective is reduction in carbon intensity by a certain percentage, this is a little tricky. In order to reduce carbon intensity in all industries there must be minimal dependence on petrol or diesel. The alternative and most sensible choice available to Europe has been found in biofuels. This for sure has made companies such as BP, Shell and the massive Canadian tar sands upset. There has been investment by firms in biofuels. On the other hand, due to heavy dependence on tropical forests for biofuels, Europe has found itself in a maze.

Biofuels are not as green as projected. Targetting 10% of fuels being renewable or sustainable in nature in the transport sector by 2020 remains a challenge. It would be interesting to see the planting of policies in the years to come. European initiatives and results work as an eye opener for the rest of the world.