Aircraft lessors are likely to amend their contracts with
airlines in reaction to the enforcement of the EU ETS (Emissions
Trading Scheme) legislation, lawyers who specialise in the area
have indicated.
The ETS, which has been enforced since the start of the year,
obliges all airlines flying in and out of Europe to pay for carbon
emissions, at a rate of €2/passenger.
Go deeper with GlobalData
Airlines’ reaction to the legislation has been largely hostile:
Chinese and Indian carriers have already missed a deadline for data
submission, with India going so far as to announce its intention to
refuse to comply to the legislation. Meanwhile, in the US the
measures risk being blocked by the senate, according to news agency
Reuters.
Aircraft lessors are said to be acting in anticipation of fines,
and even the impounding of assets, as a consequence of lessees
failing to comply with the EU regulations.
Earlier this summer Annie Pestonk, lawyer at the Environmental
Defense Fund, A US advocacy group, told the US Senate:
“These leasing and financing companies are beginning to include
provisions in their leases providing that the lessees, or permitted
sublessors, will operate the aircraft in compliance with the EU
ETS.”
She also suggested that many financers are now including
amendments in their contracts “that ensure that any liability for
non-compliance with the EU-ETS cannot be shifted to the owner,
lessor or financer of the aircraft.”
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By GlobalDataMeanwhile, the EU says it will waive the legislation if The UN’s
International Civil Aviation Organizations (ICAO) – previously
charged with reducing airline admissions – can agree a viable new
plan.
