India joins China in boycotting EU's aviation blackmail

Carbon price down 7%

China has already rejected the EU’s carbon blackmail, and now the Indian government has done the same. Not only is the EU in danger of starting a global trade war, but repercussions are widening, as China cancels a $14bn order with European aircraft manufacturer Airbus.

And all for what? To prop up the EU’s pointless emissions trading scheme which will do virtually nothing for the climate, and everything to damage Europe’s competitiveness. Even Reuters, in the article below, acknowledges that the carbon price in the EU is too low to encourage any low-carbon investment. What a joke.

NEW DELHI, March 22 (Reuters) – India joined China in asking its airlines to boycott the European Union’s carbon scheme on Thursday, confirming what a senior Indian government source previously told Reuters and stoking a diplomatic row over the issue.

“Though the European Union has directed Indian carriers to submit emissions details of their aircraft by March 31, 2012, no Indian carrier is submitting them in view of the position of the government,” India’s civil aviation minister Ajit Singh said on Thursday.

“Hence the imposition of a carbon tax does not arise,” Singh told lawmakers in a written reply.

The European Commission was not immediately available to comment. [LOL – Ed]

India’s opposition to the Emission Trading Scheme (ETS), a major plank in the bloc’s efforts to curb carbon dioxide emissions and combat global warming, could damage the chances of the Free Trade Agreement (FTA) it is negotiating with the EU.

On Monday, a senior government official told Reuters that India would ask local airlines not to buy carbon credits from or share emissions data with the bloc.

Since January this year, all airlines using EU airports start to become liable to pay for carbon emissions, but no carriers will be handed a bill until next year.

Initially, they will also be given free allowances to cover the bulk of the cost.

The March 31 deadline is one of a series for airlines to comply with various EU requirements. Documents seen by Reuters showed that airlines, including from India and China, have previously signed up to become eligible for free allowances.


Foreign governments, including the world’s top three carbon emitters – the United States, China and India – say the EU is exceeding its legal jurisdiction by charging for an entire flight, as opposed to just the part covering European airspace.

In a meeting last month in Moscow of the so-called “coalition of the unwilling”, countries opposed to the EU law including India, agreed on retaliatory steps, although it did not agree on enforcing them.

China said in February its airlines were barred from participating in the EU Emissions Trading Scheme unless they gained government approval. Beijing has also suspended the purchase of $14 billion worth of jets from European maker Airbus .

The EU’s Climate Commissioner Connie Hedegaard has said the EU only adopted its current policy because efforts to agree a United Nations scheme to curb rising aviation emissions had failed.

She has repeatedly said the EU will stand by its law unless the United Nations’ International Civil Aviation Organization can come up with a global plan.

The European Parliament has also reiterated support for the carbon charge and officials say it could decide to express its anger at India by blocking the Free Trade Agreement with the country. (source)

The EU is embarking on a very dangerous journey. It will end in tears for the EU, and China and India will be laughing.

Chinese airlines refuse to pay EU carbon blackmail

Calling Europe's bluff?

As ACM reported last month, the EU is in danger of triggering a trade war with its demand that airlines pay an additional carbon tax when flying within its territory. Obviously thinking that opposition would crumble, the EU is standing firm. Unfortunately, however, so are the Chinese:

CHINA’S four leading airlines have thrown down the gauntlet to the European Union by saying they will refuse to pay carbon charges levied under Europe’s emissions trading scheme.

The defiant message – which could lead to a ban from European airports – marks an escalation of resistance to the scheme, which came into effect this week and is also opposed by the US.

Despite the growing threat of a trade war, Europe sees the cap-and-trade system for aviation emissions as a crucial tool for reducing greenhouse gases that contribute to climate change.

Since Sunday, any airline using an airport in the EU has been obliged to participate.

But China’s leading aviation body said it would not.

”China will not co-operate with the European Union on the ETS, so Chinese airlines will not impose surcharges on customers relating to the emissions tax,” said the deputy secretary-general of the China Air Transport Association, Cai Haibo.

The association represents Air China, China Southern Airlines, China Eastern Airlines and Hainan Airlines, which fly millions of passengers to Europe each year. (source)

Legal action is being considered. Watch this space.

Global trade war looms over carbon taxes

This is what happens when we finally arrive at the pointy end of the ludicrous and dangerous policies implemented in the EU to theoretically reduce emissions [note: which don’t work]. The Chinese are furious at the EU’s unilateral decree that it will start taxing international flights as part of it’s carbon pricing regime:

China has warned the European Union to abandon its controversial carbon tax on airlines or risk provoking a global trade war.

Adding weight to the warning, an industry insider told the Financial Times that the Chinese government was seriously considering measures to hit back at the EU if it insists on charging international airlines for their carbon emissions.

In a case initiated by US airlines, the European Court of Justice ruled on Wednesday that the EU’s carbon emissions trading scheme did not infringe on the sovereignty of other nations, and that it was compatible with international law. The change is set to go into effect from January 1.

Chinese airlines have also been preparing an legal challenge in Europe and they still plan to proceed with it, but Chai Haibo, deputy secretary general of the China Air Transport Association, conceded that the European ruling complicated matters as it means they will need to find an alternative reason to challenge the law.

Even if court action fails, Mr Chai was optimistic that concerted global pressure could yet persuade the EU to repeal its law. In the short term, he called on Brussels to delay implementation in light of the intense international outcry that it has provoked.

“Except for the EU, no countries support this,” he said.

He added that several Chinese government departments in Beijing were in the midst of researching possible counter-measures. Chinese airline officials have said before that they might refuse to pay the carbon tax, raising the prospect of a drawn-out legal fight. (source)

The realities of the imaginary green utopia begin to sink in.

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