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EU aviation green scheme could spark airline trade war

8 June 2011

The European Union’s plans to include international airlines in its emissions trading scheme (ETS) could spark a trade war, it emerged from an airline industry AGM yesterday.

China has made it clear at the IATA meeting in Singapore that it is unhappy about having to be subject to the ETS and has intimated that it could impose high taxes on European carriers or stop access to certain routes in retaliation.

But the EU refuses to back down, maintaining that all airlines should be subject to the scheme which will require any airlines flying into, out of or within Europe to pay for any emissions that go over a set cap.


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