Ajit Singh Asks Airlines to Boycott EU Aviation Emission Rule

Tensions continue to run high over the inclusion of aviation in the EU’s Emissions Trading System (ETS), after Indian government officials confirmed last Thursday that New Delhi would be asking its airlines not to participate in the scheme. Meanwhile, the trade group representing the largest US airlines is now calling upon the White House to pursue a case against the Brussels plan at the International Civil Aviation Organization.

“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 civil aviation minister Ajit Singh said. “Hence the imposition of a carbon tax does not arise.”

The move makes India the second country to take concrete action against the inclusion of aviation in the Brussels scheme, with China having earlier banned its own airlines from complying with the EU ETS without government approval.

Beijing has also reportedly halted the orders of US$14 billion worth of jets from Europe’s flagship airplane manufacturer, Airbus, in response to the aviation emissions rule. However, this claim has been contested by China’s aviation regulator, Li Jiaxiang, who indicated in an interview with Bloomberg that the country’s airlines have not been barred from buying Airbus planes.

The US has also warned that it could take “appropriate action” in response to the scheme, but has yet to take any concrete steps. However, Airlines for America - the trade group that had, together with three US airlines, unsuccessfully challenged the legality of including aviation in the scheme at the European Court of Justice - is now calling on the administration of US President Barack Obama to bring a case through the International Civil Aviation Organization (ICAO), the UN civil aviation body.

The EU rule, which requires airlines to surrender carbon permits for the emissions they produce during all flights taking off or landing in the 27-country bloc, has been criticised by various non-EU governments, which argue that Brussels is exceeding its legal jurisdiction by charging for aviation emissions over an entire flight, rather than just those in EU airspace.

In response to the Brussels plan, over 20 countries - including the US, China, India, and Russia - met in Moscow in February to agree on a basket of possible countermeasures against the inclusion of aviation in the EU scheme. The 22 February announcement on possible countermeasures fed fears that the row could soon escalate into a global trade war.

Under the EU ETS - of which the aviation element entered into force on 1 January - airlines are required to buy permits for 15 percent of the carbon they emit; permits for the remaining 85 percent will be provided to them for free. Carriers will have to surrender permits for 2012 carbon production by 30 April 2013.