A EU law that charges airlines for carbon emissions is being seen as "a deal-breaker" for global climate change talks, according to Forests and environment minister Jayanti Natarajan.
Natarajan was outlining India's stand on a scheme that is being fiercely opposed by non-EU governments.
Starting 1 January, all airlines using EU airports have come under the European Union Emissions Trading Scheme (ETS), which has prompted a volley of retaliatory threats, which includes the possibility of a trade war.
US airlines have said they would comply albeit grudgingly, while China has barred its carriers from participating unless they were given permission to do so.
India yesterday formally forbade its airlines from participating after having said earlier that it would boycott the scheme.
Natarajan said yesterday that for the environment ministry it was a deal-breaker because one simply could not bring this into climate change discourse and disguise unilateral trade measures under climate change.