EU emissions scheme attracts worldwide opposition

The International Air Transport Association (Iata) has registered its disappointment at the decision by the Court of Justice of the European Union (CJEU) to uphold European Union (EU) plans to include international aviation in the EU emissions trading scheme (ETS) from 2012. The CJEU decision, taken on December 21, represents a European legal interpretation of EU ETS. However, the success of Europe’s plans will depend on how non- European states view its legal and political acceptability. In this respect, there is growing global opposition. “The decision is a disappointment but not a surprise. It does not bring us any closer to a much-needed global approach to economic measures to account for aviation’s international emissions. Unilateral, extra-territorial and market distorting initiatives such as the EU ETS are not the way forward. What is needed is a global approach agreed through the International Civil Aviation Organisation (Icao),” said Tony Tyler, Iata’s director general and CEO. The CJEU decision was in response to a legal challenge presented by the Air Transport Association of America (now Airlines for America), a number of US airlines, Iata and the National Airlines Council for Canada. Together they argued that the EU ETS contravened the Chicago Convention that prohibits such taxation of international aviation. In October 2011, South Africa (through the Minister of Environmental Affairs) signed a declaration in Delhi, joining China, the US and other nations protesting the EU ETS on the basis that it infringed and breached the sovereign rights of individual nations. The CJEU ruled that the Chicago Convention did not bind the EU which is not a signatory and that the ETS did not violate any other aspect of international law. “The CJEU decision may reflect European confidence in European plans. But that confidence is by no means shared by the outside world where opposition is growing. A formal resolution of the Icao Council, supported by 26 countries, urged Europe to take a different approach. India is reported to have instructed its airlines not to comply. Similar legislation is moving through the US Congress. Other legal challenges are expected. And on December 16 the US Secretaries of State and Transportation warned that the US would be compelled to take appropriate action if Europe did not re-think its plans,” said Tyler. The US letter noted that at least 43 countries had publicly objected to Europe’s plans. The air transport industry has made global commitments to improve fuel efficiency by 1.5% annually to 2020, to cap net emissions from 2020 and to cut net emissions in half by 2050 (compared to 2005 levels). “A global framework for economic measures is a critical component of our strategy to achieve these challenging targets. But we won’t get agreement on a global approach if states are throwing rocks at each other because Europe wants to act extra-territorially,” said Tyler.