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A slight variation on a tax.

A "compulsory investment" into a "carbon pool".

The carbon pool would then comprise a fund available to invest in upgrading the global fleet of planes.

This investment would take the form of an "Energy Loan" repayable in carbon-based Energy Units ("Carbon Dollars?) in the Pool at the market price.

The result would be that airlines would have the wherewithal to reduce emissions by investing in their fleet, and would repay the investment in "Carbon Dollars" from the savings they make.

Note that the energy investment would not be in the airline - it would be in the plane, possibly as part of a leasing arrangement.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sat Jul 19th, 2008 at 05:15:33 AM EST
[ Parent ]
However if I might be so bold as to anticipate Michael O'Leary's response to this:  "What bollocks!  You want Airlines like Ryanair, which have taken the trouble and expense to invest in the latest, most fuel efficient airplanes, to subsidise those inefficient Airlines who haven't bothered to do this and instead have wasted their money on expensive staff and overheads?"

"It's a mystery to me - the game commences, For the usual fee - plus expenses, Confidential information - it's in my diary..."
by Frank Schnittger (mail Frankschnittger at hot dotty communists) on Sat Jul 19th, 2008 at 05:25:36 AM EST
[ Parent ]
Not quite!

Those people who make "compulsory investment" will be issued with redeemable "Units", so O'Leary can flog his off on the market in Units that would develop.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sat Jul 19th, 2008 at 05:44:50 AM EST
[ Parent ]
OK - more money for bureaucrats and traders who add no value - instead of my dear friend Michael being free and able to invest his bucks where they give him his biggest bang.  Pure socialism!  His forced investments still end up going to inefficient airlines (and competitors he would like to get rid of) - and thus will be of far less real value to him that if he had invested "his" money in his own airline.

Why not just let Ryanair put inefficient airlines out of business thus replacing their inefficient fleet with his?

"It's a mystery to me - the game commences, For the usual fee - plus expenses, Confidential information - it's in my diary..."

by Frank Schnittger (mail Frankschnittger at hot dotty communists) on Sat Jul 19th, 2008 at 06:05:47 AM EST
[ Parent ]
Of course.

No company can ever be happy til it's a private unregulated monopoly.

But give him a choice between this and emissions trading.....

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sat Jul 19th, 2008 at 06:40:51 AM EST
[ Parent ]

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