US airlines fail to stop EU green tax
Source: Agencies |
December 22, 2011, Thursday
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Print Edition
Print Edition
UNITED STATES air carriers failed yesterday to block an EU law charging airlines flying to Europe for their carbon pollution, yielding to a sweeping measure intended to curb climate-changing emissions from international aviation.
The European Court of Justice in Luxembourg dismissed arguments that imposing the European Union's cap-and-trade program on flights to and from European airports infringes on national sovereignty or violates international aviation treaties.
The lawsuit was brought by US and Canadian airlines acting through the industry trade organization Airlines for America, but supported by China, India and other countries with international carriers.
The US airlines said the regulation was tantamount to "an exorbitant tax," but the EU said the added costs would amount to a few dollars per ticket and would open the way for efficient airlines to make money.
The carbon trading program, due to come into effect January 1, is one of the widest-reaching measures adopted by any country or regional bloc to regulate emissions of greenhouse gases blamed for climate change. It aims to make airlines accountable for their carbon emissions, which contribute to global warming.
Although only 3 percent of total human-caused carbon emissions come from aircraft, aviation is the fastest-growing source of carbon pollution.
The US trade group said its members would comply with the EU directive "under protest," while they were reviewing legal options.
"Today's court decision further isolates the EU from the rest of the world and will keep in place a unilateral scheme that is counterproductive to concerted global action on aviation and climate change," Airlines for America said. "Today's decision does not mark the end of this case."
Each airline will be allocated pollution permits slightly less than its average historical emissions record. If it exceeds its limit, it can buy permits from other airlines that have emitted less than allowed and have leftover permits to sell. Emissions are counted for the entire route of an aircraft that lands in Europe.
The intention is to induce airlines to emit less carbon by upgrading their fleets or becoming more efficient.
The International Air Transport Association voiced disappointment with the ruling, saying that "unilateral, extra-territorial and market distorting initiatives" like the EU's only make it harder to reach a fair deal through the International Civil Aviation Organization (ICAO), the UN regulatory agency for airlines.
But the EU says it acted because major airlines had blocked steps in ICAO to rein in carbon emissions.
Connie Hedegaard, European commissioner for climate action, said she was "satisfied" with the ruling and was ready to work with the airlines.
The EU law would exempt airlines if they take comparable measures to control greenhouse gas emissions.
The EU says all its revenue from the program will go towards fighting climate change.
The European Court of Justice in Luxembourg dismissed arguments that imposing the European Union's cap-and-trade program on flights to and from European airports infringes on national sovereignty or violates international aviation treaties.
The lawsuit was brought by US and Canadian airlines acting through the industry trade organization Airlines for America, but supported by China, India and other countries with international carriers.
The US airlines said the regulation was tantamount to "an exorbitant tax," but the EU said the added costs would amount to a few dollars per ticket and would open the way for efficient airlines to make money.
The carbon trading program, due to come into effect January 1, is one of the widest-reaching measures adopted by any country or regional bloc to regulate emissions of greenhouse gases blamed for climate change. It aims to make airlines accountable for their carbon emissions, which contribute to global warming.
Although only 3 percent of total human-caused carbon emissions come from aircraft, aviation is the fastest-growing source of carbon pollution.
The US trade group said its members would comply with the EU directive "under protest," while they were reviewing legal options.
"Today's court decision further isolates the EU from the rest of the world and will keep in place a unilateral scheme that is counterproductive to concerted global action on aviation and climate change," Airlines for America said. "Today's decision does not mark the end of this case."
Each airline will be allocated pollution permits slightly less than its average historical emissions record. If it exceeds its limit, it can buy permits from other airlines that have emitted less than allowed and have leftover permits to sell. Emissions are counted for the entire route of an aircraft that lands in Europe.
The intention is to induce airlines to emit less carbon by upgrading their fleets or becoming more efficient.
The International Air Transport Association voiced disappointment with the ruling, saying that "unilateral, extra-territorial and market distorting initiatives" like the EU's only make it harder to reach a fair deal through the International Civil Aviation Organization (ICAO), the UN regulatory agency for airlines.
But the EU says it acted because major airlines had blocked steps in ICAO to rein in carbon emissions.
Connie Hedegaard, European commissioner for climate action, said she was "satisfied" with the ruling and was ready to work with the airlines.
The EU law would exempt airlines if they take comparable measures to control greenhouse gas emissions.
The EU says all its revenue from the program will go towards fighting climate change.
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