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Cablegate: Czechs Want Emissions Trading Discussed in Icao;

VZCZCXYZ0001
PP RUEHWEB

DE RUEHPG #0194 0801607
ZNR UUUUU ZZH
P 201607Z MAR 08
FM AMEMBASSY PRAGUE
TO RUEHC/SECSTATE WASHDC PRIORITY 0195
INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RULSDMK/DEPT OF TRANS WASHDC PRIORITY

UNCLAS PRAGUE 000194

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: EAIR ECON ETRD EZ
SUBJECT: CZECHS WANT EMISSIONS TRADING DISCUSSED IN ICAO;
NO PLANS FOR NOISE RESTRICTIONS

REF: STATE 24750

1. Econoffs discussed the European Commission proposal to add
aviation to the EU emissions trading scheme (ETS) with
Ministry of Environment Office of Climate Change expert Ales
Hilcer and Ministry of Transportation (MoT) Airport
Infrastructure Director Katerina Malechova. The Czech
Republic generally supports the EC plan to expand ETS into
the aviation sector. In particular, the Czechs belive ETS
should cover both EU and non-EU carriers. However, the
Czechs recognize that a dispute between European and
non-European countries is not in their best interest. They
have decided to take a bureaucratic stance on the issue by
continuing discussions at the International Civil Aviation
Organization (ICAO) level to determine whether ICAO's 1944
Chicago Convention permits inclusion of international air
transportation in the ETS. The Czechs beleive that it does,
but they want to obtain mutual agreement from ICAO members
before moving forward with the EC proposal.

2. Both Ministries believe the EU discussion will take some
time to resolve and are still in the process of lobbying
their differing positions in the inter-ministerial process.
Malechova's deputy Pavlina Kobzova said that for competitive
reasons, MoT supports an "all or nothing" approach--either
both EU and non-EU carriers should come under ETS at the same
time or all airlines should be exempt until a deal is
reached. MoT does not support ETS implementation in phases
as the EC currently proposes. .

3. While noting that the Ministry will comply with a 2002 EU
directive which requires reporting on the level of airport
noise, Kobzova said the Czech Republic currently has no plans
to restrict aviation operations through new environmental
taxes, fees or noise restrictions.
Graber

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