The industry broadly welcomed the Government’s Stern Review on the economics of climate change, despite it adding fuel to demands for a tax on aviation.
Sir Nicholas Stern was commissioned by the Treasury to review the evidence for climate change and the economics of tackling it.
He concluded the benefits of acting now far outweigh the costs of doing nothing, estimating it would take 1% of worldwide GDP between now and 2050 to avert disaster, while doing nothing could cost 20 times as much.
Despite the warnings, he concluded: “Stabilisation of greenhouse gas concentrations in the atmosphere is feasible and consistent with continued [economic] growth.”
Federation of Tour Operators director-general Andy Cooper said: “Most people in aviation recognise the need to do something. The preference is for emissions trading,
although taxation is increasingly preferred by politicians.”
EasyJet chief executive Andy Harrison said: “EasyJet shares many of the conclusions of the Stern report. We believe we can grow and be green at the same time.”
Speaking at the launch of the report, prime minister Tony Blair called the evidence for global warming “overwhelming” and announced plans for a climate bill.
The Stern Review makes no explicit mention of aviation, but attention is falling increasingly on air travel.
Flights account for just 2.6% of carbon dioxide emissions in Europe, but they are the fastest-growing source of emissions.
A leaked letter to the Treasury from environment secretary David Miliband last week called for green taxes on flying and driving.
A British Airways spokeswoman said tax “would place additional costs on the industry without providing any environmental improvements”.
She added: “We’re the only airline in the world who takes part voluntarily in an emmission trading scheme.”