Airlines should get carbon credits for every cent they pay whether in taxes

The biggest job in resizing and reshaping is our relationship with governments. It starts with climate change. Even in a recession, environment is at the top of our agenda. No other industry is as ambitious. Two years ago, I announced a vision to achieve carbon-neutral growth on the way to a carbon-free future. No other industry is as united. Our four-pillar strategy focuses all industry players on addressing climate change together. And no other industry has achieved so much. Seven percent is how much our emissions will fall this year . Five percent from reduced capacity as a result of the recession and 2% is a result of our strategy.

Look at our amazing work on biofuels. They have the potential to reduce our carbon footprint by up to 80% . IATA set a target of 10% alternative fuels by 2017. Nobody thought it possible but four airlines have tested biofuels, making certification a reality by 2011 . But where are governments? Of the trillions of dollars in stimulus funds there is nothing on aviation biofuels.

The US is investing US$25 million in research but it’s peanuts. Governments are not providing the right incentives and oil companies who cashed US$48 billion in refinery margins from aviation are not moving fast enough. Their investment in alternative fuels is also peanuts.

But if governments are too slow to invest they are too fast to tax. US$6.9 billion is what governments added to our tax bill when everybody else was getting tax breaks.

Some governments are learning. The EUR 318 million Dutch tax cost the economy EUR 1.2 billion but did nothing for the environment. The Dutch had the good sense to abolish it. I wish that I could say the same for the UK where Air Passenger Duty was increased to GBP 2.7 billion. It is unacceptable that money collected from our responsible industry in the name of the environment is being used by an irresponsible government to pay inflated MP expense claims or bail out banks.

We must look to the future. Both the aviation industry and governments want to improve environmental performance. It’s an opportunity to work together. Our industry has made significant commitments with concrete targets. The first is to improve fuel efficiency by 1.5% each year until 2020. But we recognize that improved fuel efficiency is not enough. Our emissions must stop growing.

Yesterday our Board took a landmark decision. By 2020, the airline industry will achieve carbon neutral growth. Demand will continue to increase but any expansion of our carbon footprint will be compensated.

We can be proud. Airlines are the first global industry to make such a bold commitment. But we cannot do it alone. ICAO must define binding carbon emissions standards for manufacturers. Air navigation service providers must make it possible to fly even more effectively. Fuel companies must supply eco-friendly fuels and governments must give us access to credits in global carbon markets.

To manage this global sectoral approach , we must account for emissions at a global level, not by state. IATA will work with ICAO to ensure compliance. Airlines should get carbon credits for every cent they pay whether in taxes, charges or emissions trading scheme payments. We should pay only once, not several times.

With our commitments and a strong vision we can be proud of going farther and faster than any other industry. We are showing the way with carbon neutral growth. The industry is a role model for others to follow. The challenge will be for governments to catch up.