Standard & Poor’s-RepuTex: Airline Carbon Costs Look Set To Climb

Posted on: 22.08.2011

LONDON March 4, 2011 – Although the cost to airlines of operating under the European Emissions Trading Scheme (EUETS) from 2012 will likely be marginal at first, it could impact carriers’ credit quality over time, says a report published by Standard & Poor’s Ratings Services, applying RepuTex carbon analytics.  Titled “Airline Carbon Costs Take Off As EU Emissions Regulations Reach For The Skies,” the report outlines how the EU ETS will increase the airlines’ financial liabilities associated with carbon emissions.

The airline sector is currently responsible for a relatively small (3%) share of total global emissions.  However, this is set to rise as the sector experiences rapid growth. According to industry experts, the airlines’ share of total emissions will increase to 5% by 2050.