Debate over emissions from air-line traffic may impact fisheries

The current debate over the expansion of the EU’s Emissions Trading System from air-line traffic to other areas may have implications for a future agenda that could indirectly impact fisheries.

Photo from EU’s Emissions Trading System

Launched in 2005, the EU’s Emissions Trading System is the world’s largest emissions trading programme. Until recently, it has covered only large polluters such as power stations located in the EU. Now in the second phase of implementation, the EU is hoping to expand the system significantly, most notably by including aviation emissions by January of 2012. These new rules would require airlines with flights that land in or take off from European airports to purchase carbon permits from European governments. This essentially would force foreign airlines, which spend the majority of time outside of the EU, to participate. Air transport emissions are estimated to represent about 2-3% of global carbon dioxide emissions, and advocates of this expansion say the new rules will help airlines adopt greener technologies.

The plan has generated fierce opposition from airlines that say the EU does not have the rights to charge for emissions on routes that are mostly outside European airspace. Additionally, criticism has been vocalized from the developing world, as emerging economies like India, China and East Asian countries rely heavily on exports for growth and will largely bear the burden of the new rules when taken from a trade perspective.
Though the EU says they are not planning to change this legislation, the rules are now being debated internationally. An advisory opinion could come within a few months, with a final judgment possible before the system is fully implemented in 2012.

The way these new rules will be accepted and implemented could provide insight to future changes that will indirectly affect fisheries, as the EU commission ultimately wishes the post- 2012 trading system to include maritime transport emissions in much the same way. It is estimated that the global marine shipping sector is responsible for approximately 1.5 percent of global greenhouse gas emissions, with emissions expected to double by 2050 if no action is taken.

From a trade standpoint, international marine shipping plays a vital role in the global market: from 2000 to 2007, the volume (in tons) of world merchandise exports increased an average of 5.5 percent per year (nearly twice as fast as world GDP), with over 80 percent of that trade volume moved via ship (Pew Center, http://www.pewclimate.org/technology/factsheet/MarineShipping). Like other sectors, the fisheries sector relies heavily on maritime transport thanks to its efficient and cost-effective logistic systems and a large amount of frozen fish and fishery products are carried by ships. However, if maritime transport becomes included in the Emissions Trading System, the price of traded fish could rise in the future. This could lead to higher prices for imported fish in developed countries and reduce demand. At the same time it would stimulate regional trade in the developing world and thus further encourage demand in emerging economies close to the main production areas. This trend is already under way as the new growth in fish consumption is seen in countries such as India, Malaysia, Brazil and Mexico, and not in the traditional ones; Japan, the EU and the US.

By Anna Child

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