Airlines to receive free carbon emission allowances

The European Commission will grant airlines allowanced of 85% of their required carbon emission permits for free in 2012 under its emissions trading system (ETS). The following year the allowances will reduce to 82% until 2020. The allocation of free permits will range between 20 per cent and 100 per cent, depending on the airline. The free allowances, which amount to a €20bn subsidy over the next decade, the EU hopes with give its airlines enough money to “invest in modernising their fleets, improving fuel efficiency and using no-fossil aviation fuel”.