Search
  World Biz Tool: Save | Print | E-mail   
EU needs Plan B on ETS to avoid trade war: EU aviation industry
Last Updated(Beijing Time):2012-03-13 05:41

 Leading European aviation companies have urged the European Union (EU) to prepare an alternative approach to its plan to bring global airlines into its emissions trading scheme (ETS) to avoid possible trade conflicts.

"The amount of resistance to the EU's plans shows that the European Commission needs a Plan B in case there is retaliatory action," Philip Allport, spokesperson of British Airways, told Xinhua on Monday.

While acknowledging that carbon trading is the most effective way of reducing aviation emissions, Allport argued, "trying to impose a scheme on flights outside of Europe risks retaliatory action against EU airlines and EU trade at a time when the European economy is under severe pressure."

The comments came a day after Europe's seven leading aviation companies have reportedly joined forces to warn the EU's plans to charge all airlines using EU airports for carbon pollution are putting 2,000 jobs and billions of dollars of orders at risk.

Airbus spokesman Eduardo Galicia confirmed to Xinhua that Airbus and six major European airlines British Airways, Virgin Atlantic, Lufthansa, Air France, Air Berlin and Iberia have sent a joint letter to European political leaders to calling for action to avert an escalating global row over the EU's measure.

The letter, which was also signed by heads of French and German aircraft engine makers Safran and MTU Aero, has been sent to heads of governments of Britain, France, Germany and Spain, which co-founded Airbus, Galicia told Xinhua via phone.

Chiefs of the aviation giants said in the letter that they expected "suspensions, cancellations and punitive actions" by other countries to grow "as other important markets continue to oppose the ETS."

They also argued that the EU move will damage competitiveness at a time of economic weakness and urged the EU to "put on hold" the plan to extend the scheme to airlines until a global solution to control carbon emissions by airlines can be agreed.

"The EU proposal is affecting our industry globally. What we propose is a global solution for a global problem to avoid creating trade issue," Galicia said.

The remarks echoed Tony Tyler, director general of the International Air Transport Association (IATA), who warned at a forum on international relations in Montreal that the EU's proposal to impose the "carbon tax" on all airlines operating within the border of the EU could provoke a trade war.

The new EU legislation came into effect on Jan. 1 this year, but carriers will begin receiving bills only in 2013 after this year's carbon emissions have been assessed. Tens of countries have been strongly opposed to the EU move, saying it violates their sovereignty and international law.

Source:Xinhua 
Tool: Save | Print | E-mail  

Photo Gallery--China Economic Net
Photo Gallery
Edition:
Link:    
About CE.cn | About the Economic Daily | Contact us
Copyright 2003-2024 China Economic Net. All right reserved