Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Boeing backs Trump airplane emissions rules challenged by U.S. states

Published 02/16/2021, 05:00 PM
Updated 02/16/2021, 06:05 PM
© Reuters. FILE PHOTO: The Boeing logo is displayed on a screen, at the NYSE in New York

By David Shepardson

WASHINGTON (Reuters) - Boeing (NYSE:BA) Co on Tuesday backed first-ever fuel efficiency standards for new airplanes finalized by the Trump administration in its waning days that a dozen U.S. states have challenged as too lenient, and that President Joe Biden's administration is reviewing.

The largest U.S. planemaker asked a U.S. appeals court in Washington for approval to intervene on behalf of the Environmental Protection Agency (EPA), which is being sued over its decision to finalize the first-ever standards regulating greenhouse gas emissions from airplanes. The plaintiffs, 12 states, the District of Columbia and three environmental groups, want tougher emissions rules.

The states said last fall the EPA rule lags "existing technology by more than 10 years and would result in no GHG reductions at all compared to business-as-usual."

Airplanes have been the largest source of transportation greenhouse gas emissions not subject to rules. In 2016, the U.N. International Civil Aviation Organization (ICAO) agreed on global airplane emissions standards aimed at makers of small and large planes, including Airbus SE (OTC:EADSY) and Boeing Co , which both endorsed the rules.

Boeing noted the ICAO emissions standards effort began under former President Barack Obama's administration, in which Biden was vice president.

The planemaker argued that it is "essential" rules "be reasonably achievable, given the billions of dollars it costs to design, build, and certify new airplanes."

"Attempts to overturn regulation directly aligned with successful cooperative international efforts to combat climate change, supported by more than 190 countries, will only discourage future international agreements," Boeing said in a statement.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The EPA declined to comment on Boeing's filing.

In January, the Trump EPA said it did not expect the rule to result in emissions reductions and did not project it would "cause manufacturers to make technical improvements to their airplanes that would not have occurred" otherwise.

The Environmental Defense Fund has said the EPA’s "do-nothing rule is totally inadequate in light of the climate crisis."

The new rules apply to new-type designs as of January 2020 and to in-production airplanes or those with amended type certificates starting in 2028.

Airplanes covered by the rule account for 10% of U.S. transportation greenhouse gas emissions and 3% of total U.S. emissions.

Separately, industry group Aerospace Industries Association (AIA) in a letter released Tuesday urged the Biden Administration "to continue to prioritize multilateral solutions" on airplane emissions.

AIA also urged the Federal Aviation Administration to develop regulations to allow U.S. manufacturers to certify aircraft to the global CO2 standard. "Our industry is ready to work with the Biden Administration to improve the sustainability of air travel," AIA wrote.

Latest comments

the (former) administration 's EPA: defunct (hopefully).
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.