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A European Union law that charges airlines for carbon emissions is “‘a deal-breaker'” for global climate change talks, India’s environment minister said, hardening her stance on a scheme that has drawn fierce opposition from non-EU governments.

India on Wednesday formally forbad its airlines from participating having earlier said it would boycott the scheme.

A European Commission spokesman said the European Union was willing to cut emissions faster and more deeply than emerging nations, such as India — the third biggest carbon emitter after China and the United States.

EU Climate Commissioner Connie Hedegaard has repeatedly said the only reason for the European Union to modify its law would be if the U.N.’s ICAO could come up with a global plan to curb airline emissions.

source: Reuters

India will urge its airlines to boycott the European Union’s carbon charge scheme, raising the prospect of a global trade war over an EU law requiring flights in and out of Europe to pay for their greenhouse gas emissions.

China said in February its airlines were barred from participating in the EU emissions trading scheme (ETS) unless they got government approval. Beijing has also suspended the purchase of $14bn worth of jets from European maker Airbus. India does not yet plan to ask airlines to cancel Airbus purchases, but that is possible if the dispute escalates, the Indian official said.

If the European commission then stopped Indian airlines from flying to Europe, India would retaliate with similar moves and consider charging an “‘unreasonable'” amount for flying over India, the official said. “‘We have lots of measures to take if the EU does not go back on its demands. We have the power of the economy; we are not bleeding as they are,'” the government official said, adding that Europe’s position would harm its own economy and airlines.

source: Guardian.co.uk

A group of 29 nations Wednesday intensified pressure on the European Union to abandon a law that forces airlines to pay for carbon emissions, seeking retaliation against the EU and raising the risk of a trade war.

The nations, which include the U.S., Russia, China and India, agreed to adopt a “‘basket of measures,'” permitting each participating state to choose the actions that it finds most effective to counteract the EU’s Emissions Trading Scheme, or ETS, said Valery Okulov, Russia’s deputy transportation minister, following a two-day meeting in Moscow.

A top European court said in December the charges are legal.

source: wsj.com

Russia may prohibit its airlines from carbon emission trading in protest against a European Union law it says is unfair, state carrier Aeroflot said on Monday.

A group of nations will gather in Moscow this week to debate possible retaliation to the law, which raises the risk of a trade war by forcing all airlines to pay for their carbon emissions.

Aeroflot said the law could cost it 800 million euros by 2025. It warned that the opposition could change its approach from “‘oral protestations'” to “‘various forms of trade wars with the EU'”.

source: Reuters

China has “‘banned'” all airlines in the country from joining the European Union’s Emissions Trading Scheme (ETS) aimed at cutting carbon emissions.

The authorities have also barred the airlines from increasing their fares or adding new charges for the scheme.

The ban comes just weeks after the China Air Transport Association said its members did not support the ETS.

The scheme, implemented from 1 January, levies a charge on flights in EU airspace based on carbon emissions.

The move by the Chinese authorities is likely to complicate the issue as the EU will have to decide on what measures it will take from here on.

source: BBC.co.uk

Beijing said it has deep concerns over the EU’s Emissions Trading Scheme (ETS), which came into force on New year’s Day and demands all airlines pay a green duty to offset carbon emissions.

“‘China opposes the European Union’s unilateral legislation. China has expressed to the EU our deep concern and opposition many times on a bilateral level,'” Chinese Foreign Ministry spokesman Hong Lei said.

Mr Hong urged Brussels to hold urgent talks with Beijing over the controversial carbon allowance scheme, which has also met strong opposition from other countries.

China is likely to be able to pull unusually heavy punches in the dispute as its air carriers ferry hundreds of thousand of passenger from Asia into Europe’s troubled markets, including the tourist sector.

source: Telegraph.co.uk