Monday, February 13, 2012

EU Vows to Keep Airline-Emission Levies as China-India Opposition Mounts

The European Union will press ahead with emissions levies for international airlines, putting the bloc on course for a trade spat with countries including China, India and the U.S.
“The EU will not suspend the legislation,” Siim Kallas, the European Commission’s vice president for transport, said today in Singapore at an airline conference. “It’s a very high- profile environmental issue.”
At least 27 countries are due to meet next week in Moscow to discuss laying new charges on European airlines as they protest the EU’s addition of aviation to a carbon-emissions trading system last month. The governments say the move extends EU regulations beyond the bloc’s border.
“What started out as a solution for environment has become a source of potential trade conflict,” Tom Enders, chief executive officer of Airbus SAS, said in Singapore today. “That should be a worry for all of us.”
China and India have already asked airlines to rebuff mandatory requests from the EU for data needed to fix emissions payments. Carriers will have to hand over permits for 2012 carbon production by April 30, 2013. They will receive about 85 percent for free and will need to buy the rest in the market.
13/02/12 Jasmine Wang/Bloomberg
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