WORLD AIRLINES SET TO FIGHT THE EU EMISSION TRADING SCHEME

Over 30 countries including India, Russia, China, Indonesia, USA, Brazil etc. will meet in Moscow on 21st and 22nd February to take decisions on what retaliatory measures could be taken against the EU if it insists on imposing the carbon tax on non-EU flights as there is a growing agreement on the matter. Already China has made it clear that its airlines will refuse the pay the charges called for.

The EU now risks finding itself direly isolated about an initiative that only three years ago seemed to be in step with the times to many European officials. The EU defended the need to put a price on airplanes' carbon emissions as a logical part of any serious effort to combat global warming.

Failing any type of compromise, and regardless what happens in the various legal venues explored by world airlines opponents to the Carbon Tax, the possibility of a trade war cannot be ruled out. This could have a devastating effect on the European airline industry and the European economy as a whole especially in this period of recession.

• Countries could retailiate on European airlines by putting overflight fees;
• Countries could decide to restrict the number of flights being operated by them citing emission concerns;
• Actions could be taken against the European Airline industry and countries like India and China could decide to place their aircraft orders with Boeing instead of with Airbus
• Flights could be diverted away from Europe to avoid the Green Tax. Airlines would try to evade the emissions meters by scheduling stopovers in destinations near the EU, for example somewhere in North Africa in order that only emissions in the final leg of the flight would be counted.
• The EU could be subject of rulings in international courts against violation of international treaties.