European Union freezes carbon tax for international airlines for a year

The European Union (EU) will freeze for a year its rule that all airlines must pay for their carbon emissions for flights into and out of EU airports, the EU executive said, following threats of international retaliation. This comes as a big relief for Indian carriers, as per an NDTV report. In fact, India and 22 other countries, including Russia, China and the US, had in February this year decided to retaliate with a series of measures, including imposition of heavy costs on European airlines and plane manufacturers.

However, flights within the EU will still have to pay for their carbon emissions. The year-long exemption will apply to flights linking EU airports to countries outside the bloc, a move welcomed by US and Asian officials.

Connie Hedegaard, Climate Commissioner said that she had agreed "to stop the clock" to create a positive atmosphere for international talks on an alternative global plan to tackle airline emissions. But let me be very clear: if this exercise does not deliver and I hope it does then, needless to say, we are back to where we are today with the EU ETS (Emissions Trading Scheme)."

"While I am pleased the EU has temporarily suspended its efforts to unilaterally impose a tax on our airlines flying over US and international airspace, the EU's announcement does not rule out future efforts to tax foreign carriers," said Senator John Thune, who led efforts in the US Senate to block the law.

"China always maintains that under the multilateral mechanism, such as the UNFCCC, ... international cooperation should be carried out to tackle climate change. We should oppose unilateral measures," Hong Lei, Spokesperson, Chinese Foreign Ministry."

EU member states must still formally endorse the Commission's proposed freeze. Hedegaard said she had told representatives of all 27 member states of the plan but could not say how long the EU approval process might take.

Some airline associations welcomed the announcement, but said the moratorium meant EU carriers operating flights within the bloc could be at a competitive disadvantage. Director General Andrew Herdman, Chairman, Association of Asia Pacific Airlines (AAPA) described the freeze as "long overdue" but said it might not go far enough. "The implied threat of an automatic snapback in a year's time means that the EU will still be seen by some as negotiating with a gun on the table," Herdman said in a statement.

Source: http://www.travelbizmonitor.com/european-union-freezes-carbon-tax-for-international-airlines-for-a-year-18390

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