114121 Airline Briefing Sheet_web.qxd
1/12/08
14:22
Page 2
Airlines Preparing for the Emission Trading challenge KPMG LLP (UK)
What is your plan for complying with the European Union’s Emissions
Trading Scheme? Airlines operating in to and out of the European Union in 2012 will have to operate under the EU emissions trading scheme (ETS). By mid 2009 airlines will need to have developed and submitted monitoring plans detailing how they will measure their CO2 emissions. These plans must include details around: • Emissions
Why act now? • Benefits from commercial opportunities
Next steps • Understand the requirements and impact of the ETS
• Reduce risk of financial penalties
• Develop and submit monitoring plans
• Reduce risk of reputational damage • Develop carbon trading strategies • Implement internal processes • Gain experience in anticipation of global emissions schemes
• Fuel • Aircraft type • Routes • Quality management systems Free allocations of CO2 allowances will be given to airlines.
The cost of non-compliance • Airlines will be forced to purchase an allowance from the free market for every tonne of CO2 emitted • A penalty of €100 per tonne of non surrendered allowances will be charged
• Develop trading strategies How can we assist • Provide analysis of impact of ETS • Develop response to risk and opportunities • Develop carbon trading strategies and requisite internal mechanisms • Develop monitoring plans • Calculate carbon emissions • Calculate tax implications • End of year review of trading activities
Contact us To find out more or to request copies of future documents around this topic please contact one of the team: Dr Ashley Steel Global Chair, Transport +44 (0)20 7311 6633 ashley.steel@kpmg.co.uk
Richard Sharman Head of Carbon Advisory Group +44 (0) 20 7311 8228 richard.mas.sharman@kpmg.co.uk
Dr Simon Davies Carbon Advisory Group +44 (0)20 7694 3377 simon.davies2@kpmg.co.uk
© 2008 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
114121 Airline Briefing Sheet_web.qxd
1/12/08
14:22
Page 3
kpmg.co.uk
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
Š 2008 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the United Kingdom. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. Designed and produced by KPMG LLP (UK)’s Design Services Publication name: Airlines Publication number: RRD-114121 Publication date: December 2008