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Carbon Tax may Ground EU Aviation Sector Print E-mail
by Tom McGregor    Mon, Feb 13, 2012, 05:53 PM
To finance bailouts of Greece and other European Union nations, the EU is imposing a so-called carbon tax on all flights, domestic and international, that fly through Europe. Foreign airlines are balking at the tax and the EU is threatening to forbid these airlines from flying into and out of Europe.

The BBC News reports that, “EU ‘risks trade war’ over carbon trading scheme. The European Union’s carbon trading scheme may spark a trade war, according to one of the world’s biggest planemakers.”

Airbus boss Thomas Enders said, “what started out as a solution for the environment has become a source of potential trade conflict.”

According to the BBC, “the Emissions Trading System levies a charge on flights in EU airspace, based on carbon emissions. But the US and China are opposed to their airlines joining the scheme.”

The EU carbon tax was launched on January 1 that created allowances for carbon emissions and permits airlines to “cap and trade” their allowances.

By the way, President Barack Obama introduced “cap-and-trade” legislation that endorsed EU tax policies, but the bill was opposed by a Republican-controlled Congress.

To read the entire article from the BBC News, link here:

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Comments (2)add comment
written by Rasmus (Denmark) , February 19, 2012

"To finance bailouts of Greece and other European Union nations, the EU is imposing a so-called carbon tax on all flights,"

This has absolutely nothing to do with the carbon tax. If you pollute in Europe, you have to pay. In the end the European passenger will pay the carbon tax, so what does it matter to China and USA?

written by Alex , March 27, 2012

This is why more funding is needed to explore biofuel options for commercial airlines, although this is only a long term solution and does not deal with the current problems you outline.

jet charter

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