Lufthansa sees ETS compliance costs rising in 2013

Washington DC
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Lufthansa expects its compliance costs of the EU's Emissions Trading System (ETS) to continue to rise in 2013.

Previously the carrier has stated its participation in the ETS would add roughly €130 million ($169 million) in additional expense this year.

Lufthansa's head of political communications Peter Schneckenleitner said the gap between free allowances and what the carrier will need to purchase next year is 35-40%. The carrier believes its costs to comply with the system would again be a three digit figure in the millions for 2013.

The reduction in the number of free allowances under the ETS in 2013 would raise the cost for the carrier dramatically, Schneckenleitner explained.

Lufthansa vice-president of aviation biofuel Joachim Buse estimated the cost per tonne paid by Lufthansa on credits for emissions that exceed a 2005 baseline is €40-45. Buse was speaking in Washington, DC on 13 January to mark the conclusion on 12 January of the first transatlantic flight from Frankfurt to Washington powered partially by biofuel.

Buse was joined by Lufthansa head of corporate communications Klaus Walther who stressed the carrier is not opposed to emissions trading. The airline does, however, oppose regional solutions that distort competition.

Noting the European ETS was causing chaos, Walther said Lufthansa has learned that China wants to introduce a penalty on carriers entering its airspace, which means European carriers would be doubly penalised.