The Environment and Energy Agency intends to file a claim against Play’s bankruptcy estate.
mbl.is/Eggert Jóhannesson
The Environment and Energy Agency of Iceland will impose an administrative fine on the bankruptcy estate of Play for unpaid carbon taxes, also known as emission allowances.
The fine amounts to approximately 2.3 billion ISK, stemming from the airline’s failure to pay around one billion ISK in carbon taxes before declaring bankruptcy.
The agency will also file a claim against Play’s bankruptcy estate for the cost of the unpaid emission allowances. This will be done even though Play was supposed to settle its emissions obligations within the EU Emissions Trading System (ETS).
The payment was due on September 30, one day after Play declared bankruptcy.
“Our duty to impose the fine”
Einar Halldórsson, head of air quality and emissions trading at the agency, says the agency is legally obligated to impose the fine and believes it has the right to claim the emissions settlement from the estate.
“We are filing the claim as the national administrator of the ETS registry,” Halldórsson explains.
“Even though the European Union technically owns the registry, we consider it our responsibility to ensure the settlement of the emission allowances.”
Similar to WOW air case
A similar case arose when WOW air went bankrupt in 2019. In that instance, the Environment Agency dropped its claim before the court for WOW to settle its allowances.
It therefore remains unclear whether the Environment and Energy Agency’s claim against Play’s bankruptcy estate will be upheld this time.