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Earlier this week, the Icelandic press told the press that the bankrupt airline WOW Air faces a $ 30 million administrative fine (Icelandic 3 798 631 250) due to the negligence of the air operator to pay the emission rights for 2018. According to the Kjarninn information website, this is the biggest fine ever imposed by the Environment Agency.
Umhverfisstofnun (the Icelandic equivalent of the Environmental Protection Agency) announced that the deadline for the settlement of their "emission allowances" was 30 April 2019. However, this date has pbaded and remained without WOW Air having submitted a proposal. This was probably due to bankruptcy and the absence of air pbadengers.
As a member of the European Union trading system (ETS), Iceland is also committed to reducing greenhouse gas emissions from industrial activity and its aviation sector. The basic premise is that those who release more emissions than expected should purchase additional allowances.
Regulatory Policy
The Environment Agency indicates that the fine is legal and corresponds to € 100 for an "emission quota". And an emission quota is currently equivalent to one tonne of CO2.
According to WOW Air's certified emission reports, total emissions for 2018 were 278,125 tonnes of CO2. In addition to the fine, it is also necessary to pay for new emission allowances corresponding to the emissions from the carrier's activities in 2018. The imposition of the administrative penalty was in accordance with Article 43. Law no. 70/2012 on climate change and Directive 2003/87 / EC of the European Parliament.
The Umhverfisstofnun press release states that the WOW Air estate may appeal the decision to the Ministry of the Environment within three months of receipt.
L & # 39; ETS
The EU emission trading scheme (ETS) has been in place within the EU since 2005. The exchange system is one of the most important in the EU. key policies in place to limit and combat climate change. At the same time, the ETS also aims to generate economic incentives to reduce greenhouse gas emissions in the EU.
ETS has changed a lot since its introduction. Primarily, its scope has been expanded. As a result, since January 1, 2012, all flights within the EEA have been included in the scope of the system. A year later, the system expanded. It now includes more types of local industrial activities and more types of greenhouse gases.
Collapse of WOW Air
WOW Air was one of the two major airlines operating in Iceland, the other being Icelandair. WOW Air, now bankrupt, ended operations on March 28th. The liquidation came soon after.
Most of the airline's aircraft were taken back shortly after the end of its operations, while one of their Airbus A330 aircraft returned to its leasing company. It is said that this aircraft, TF-GAY, will fly to Turkish Airlines.
Following the collapse of the airline, the Icelandic economy contracted. According to Bloomberg, the Central Bank of Iceland had predicted 1.8% growth in the economy before the airline pulled back. The forecast is now a decrease of 0.4%.
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