Signs of EU relenting on carbon tax if ICAO will step in with new rules

THE European Union appears to be easing off on its aviation carbon tax, discreetly allowing that an ICAO-sponsored alternative might prompt it to back off from enforcing its draconian law, reports Atlanta area Air Cargo World.

But not long ago, an EU official told Air Cargo World: "This is not a proposal. This is adopted legislation. We do not intend to back down or modify our legislation."

The EU Emissions Trading Scheme (ETS) has been applied since the beginning of the year, but airlines have flown into Europe without paying the carbon tax because under its rules, the EU first provides free credits. But from January, credits must be purchased.

Quite apart from the usurpation of UN jurisdiction involved as well as infringement on national sovereignty, as the measure taxes emissions over all world and not just over EU states, it tax will be costly. The International Air Cargo Association (TIACA) estimates the sector will pay EUR3.5 billion (US$4.5 billion) by 2020.

Opposition also came in the form of a meeting among 17 nations in Washington this summer. Delegates were united in fighting the ETS by creating a way forward on emissions using ICAO's leadership.

Also opposed is US Secretary of Transportation Ray LaHood: "What I'd like to get the European Union to do is to eliminate this lousy tax. Nobody has a better record on the environment than President Obama yet we're being penalised by the European Union because they want to cut down on carbon by putting a tax on airlines, which is really unfair."

China and India has indicated that Europe-based Airbus will find it difficult to make sales and China has told its airlines to avoid Airbus purchases for long-haul aircraft.