Study finds airlines stand to make up to $1.7 billion in windfall gains from EU emissions scheme in 2012
A study by Dutch consultancy CE Delft estimates airlines stand to make up to 1.3 billion euros ($1.7bn) in windfall profits from the EU Emissions Trading Scheme (EU ETS) in 2012. This is based on an assumption that airlines have passed on all the costs of the scheme in increased charges to passengers including the value of the free allowances they have been allocated. This sum also includes a windfall gained as a result of the European Commission’s ‘stop the clock’ proposal. Airlines have always consistently denied they would profit from the scheme but most have been less than transparent on pass-through costs to customers, choosing to hide some or all of the cost within fuel surcharges. The CE Delft study was commissioned by Brussels-based NGO Transport & Environment (T&E), which suggests the carriers contribute their windfall to the UN’s Green Climate Fund.
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