Is the EU Emissions Trading Scheme responsible for the collapse of flybmi?

Posted by on Feb 17, 2019 in Articles, News | 0 comments

 

I would probably  have taken little interest in yesterday’s announcement that a relatively small regional airline, flybmi, has ceased trading, if it was not for the fact they were placing the blame, in part, on the EU Emissions Trading Scheme (ETS). According to the statement on the airline’s website [1]:

The airline has faced several difficulties, including recent spikes in fuel and carbon costs, the latter arising from the EU’s recent decision to exclude UK airlines from full participation in the Emissions Trading Scheme.

So, I wanted to find out if this was really the case.

First of all, the background. You may recall from my earlier post that the EU is facing a real challenge for its flagship ETS as a result of BREXIT. The problem is that allowances in the scheme can be traded freely between member states of the EU but if the UK leaves the scheme ahead of the current Phase (running to 2020), there is a very real risk that the now redundant UK allowances, would flood the market and so render the ETS ineffective at capping carbon emissions.

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Key lessons from the EU-ETS BREXIT chaos

Posted by on Dec 6, 2017 in Articles, Blog | 0 comments

The complexity of disentangling the UK from European institutions has been put in sharp relief by the intricate manoeuvring taking place around the EU Emissions Trading Scheme. Politicians have been at pains to talk up the simplicity of any transition and the ease with which existing EU environmental legislation will be translated to the UK statutes through a “Great Repeal Bill”. In practice the process is proving to be much more complex.

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