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  Business Times 30 Mar 07
SIA chief blasts emissions taxes, carbon offset schemes for airlines
Aviation industry is responsible for just 1.6% of global emissions, he says
By Ven Sreenivasan

(SINGAPORE) Emissions taxes, carbon offset programmes and emissions trading schemes imposed on the aviation industry are misguided, unrealistic, offensive and morally objectionable, Singapore Airline's chief executive said in a hard-hitting speech delivered at a Hong Kong aviation conference yesterday.

Citing various expert studies, Chew Choon Seng noted that while there was no denying that the fast-growing global aviation had an impact on the environment, its responsibility for global warning was disproportionately small, at just 1.6 per cent of global emissions.

'The aviation industry accounts for 8 per cent of the world economy, and has a multiplier effect on business, travel, trade and tourism,' Mr Chew said at the Greener Skies 2007 conference yesterday.

Mr Chew was critical about the effectiveness of the carbon offset schemes, where industries invest in environmentally friendly initiatives to offset the emissions they produce. 'Sounds neat in theory, but in practice, offsetting is neither transparent nor effective. Because it uses the voluntary market for trading, which is largely unregulated, and there's no guarantee that the intended projects are undertaken successfully.'

But he saved his harshest criticism for the proponents of emissions trading schemes. 'They are simply revenue-raising ploys dressed up to be in aid of the environment, but with collections disappearing into government treasury coffers, and no visibility on how much is actually spent on improving the environment.

Carbon taxes, specific to airline passengers, are unfair and discriminatory to airlines, and unless we are more vocal in our opposition to them, politicians will see us as easy pickings to fund all sorts of government spending - like the French President's bizarre proposal last year for a tax on passengers to fund foreign aid programmes.'

He said the winners from trading were brokers. 'And I find it morally objectionable and offensive when trading houses openly advertise that they are targeting emissions trading as their next big profit generator.'

And if a global trading scheme was to be devised, one with universal acceptance should be devised by the International Civil Aviation Organisation, he said.

Mr Chew added that with fuel accounting for between 25 and 40 per cent of operating expenditure, airlines already had enough incentive to lessen fuel consumption, and to improve operational efficiency, without the need for externally dictated punitive and discriminatory measures.

In fact, the best approach would be via partnerships with aviation industry partners, he added.

A large part of the International Air Transport Association's US$1.8 billion fuel-saving campaign in 2006 resulted from shorter, more direct, tracks for 350 air routes. 'That was possible only with the understanding and cooperation of government agencies and air navigation service providers,' Mr Chew noted.

'More can be done, and not just with air routes, but also to improve inefficient air traffic management systems, such as fragmented territorial air traffic control, notoriously over Europe, and overly conservative flight separation standards, noticeably over China skies, where flight separations are more than double what it is in America and Europe.'

He added that at least some 10 per cent of all flying time - corresponding to the emission of 70 million tonnes of carbon dioxide each year - was created by needless waiting for clearance to ascend or to descend or to cross traffic control zones.

Aircraft technology was also reducing fuel burn. 'Each new generation of aircraft has improved fuel efficiency significantly, through improved engine designs, better aerodynamics and lighter airframes. The evolutionary progress and incremental improvements will continue to serve us well.'

But he ruled out substitutes for jet kerosene in the foreseeable future, as cleaner and consistent alternatives, like biofuel and liquid hydrogen, would take time to research and develop.
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