EU ETS Aviation Scheme
Date: 04/11/2011 in General
The US House of Representatives has passed a bill making it
illegal for US airlines to comply with the 
controversial EU ETS Aviation scheme.
The move comes in the wake of the release of the European Court of Justice (ECJ) Advocate Generals opinion, which found the EU plan to extend its emission trading scheme (ETS) to aviation to be fully compatible with international law. Tensions have been escalating in recent months between the EU and a group of countries opposed to the initiative.
The group last month adopted a declaration in New Delhi demanding that the EU cancel the inclusion of aviation in the ETS. India has said that if the EU does introduce the measure as planned in January 2012 it will retaliate. China, which also opposes the scheme, has already blocked the order of Airbus A380s from Hong Kong Airlines.
International Centre for Trade and Sustainable Development, Volume 11, 31 October 2011.
The International Civil Aviation Organisation (ICAO) governing council is expected to adopt New Delhi declaration as well as a set of resolutions calling on the EU to allow non-EU carriers to be exempt from the ETS when the Montreal-based organisation meets this Wednesday. Reuters reports that the ICAO has claimed that the ETS issue poses major challenges and risks for aircraft operators.
The recent developments out of Washington further complicate the dispute as if the bill is also approved by US Senate, thus becoming law, US-based airlines will be put in a difficult legal position. Should they continue to fly to Europe, they would be in breach of US law if they comply with the ETS and in breach of European law should they not. Some experts say the issue could lead to a trans-Atlantic trade war.
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