Australia’s flag carrier airline Qantas seems to have come up with a novel way of getting new, more fuel-efficient aircraft, it wants funds from the Australian government’s proposed Direct Action climate plan.
Qantas has urged the conservative Liberal-National government to design its Direct Action climate policy to encourage more efficient aircraft, better air-traffic management and less fuel usage.
Fairfax Media reports that among early submissions on the details of the Direct action plan, made public late in December, Qantas and other companies recommended the government consider broadly what projects it might fund with its $1.55 billion Emission Reduction Fund.
Qantas said it had identified several projects that could reduce emissions, including investing in a fleet of fuel-efficient aircraft and improving air-traffic management.
”With access to co-financing or other government support, such as funding under the Emissions Reduction Fund, this abatement and the long-term economy-wide benefits that accompany these projects could be unlocked,” it said.
Fairfax Media reports Qantas recently pushed for government help, although insisted it was not looking for a bailout.
That came after chief executive Alan Joyce hit out at rival Virgin Australia received a $35 million injection from its foreign owners.
A Qantas spokeswoman said the Direct action submission and the debate about the airline’s future had no connection.
A number of other submissions from big businesses and groups pressed the government to be ”flexible” with penalties and emissions baselines.
Under the direct action policy, which would replace the national carbon price if it is repealed, the coalition government had two main design elements.
The first was the $1.55 billion Emissions Reduction Fund that would fund projects that cut emissions.
The second was the establishment of emissions baselines for industry and potential penalties if they were breached.
Environment Minister Greg Hunt released the green paper on Direct Action just before Christmas and will accept submissions until late February before finalising plans.
He has since said he does not want the direct action policy to be punitive.
”We have no plans to use international permits,” a spokesman for Mr Hunt said, rejecting industry calls for access to cheaper carbon abatement options overseas.
In its submission, miner Rio Tinto said the government’s objective that penalties for increasing emissions would only occur in ”exceptional circumstances” must be built into its design.
It said the policy should not discourage growth industries.
