NewEnergyNews: DUBAI POISED TO SPOIL EU CAPPING

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    Monday, April 30, 2007

    DUBAI POISED TO SPOIL EU CAPPING

    A superb example of the problems with cap-and-trade:

    Dubai could gain from EU aviation carbon-trading plan: US official
    April 26, 2007 (AFP via Yahoo News)

    WHO
    Marion Blakey, admininistrator of the Federal Aviation Administration
    Dubai International Airport (click to enlarge)
    WHAT
    An FAA spokesperson suggested a European carbon cap might mean Dubai’s capacity for handling airline traffic would make it an attractive hub, assuming it remains outside the carbon cap scheme and flights there would therefore be cheaper.

    WHEN
    - Dubai airport handled 29 million passengers in 2006 and will handle 33 million in 2007. It will expand capacity to 70 million by 2008 and is building a new facility to handle 120 million.
    - Institution of the EU plan is on-going.

    WHERE
    Dubai is one of the United Arab Emirates along the western coast of the Persian Gulf.
    click to enlarge
    WHY
    This is how international efforts to limit greenhouse gas emissions can be undercut by non-participants. The economic advantages of non-participation are apparent. Airline emissions are among the highest and would, therefore be regulated by the EU plan, driving the cost of flying up. Dubai, the busiest airport in the Middle East, would be happy to compromise the EU program by taking business away from EU airports, especially since it figures to have cheaper jet fuel in ample supply as well.

    QUOTES
    Blakey: "Dubai might benefit from the (carbon-trading) policy ... Air traffic could be diverted to it…"

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