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India mounts campaign against EU's carbon levy news
22 September 2011

New Delhi: Unconvinced by European Union (EU) arguments that its carriers would not be paying out huge amounts through a EU carbon emissions levy sought to be unilaterally imposed on global airlines from 1 January 2012, India has said it will organise a global campaign against the move.

India will host a meeting of representatives, including the US, from more than a dozen nations in Delhi at the end of the month and issue a joint declaration against the proposal, reports quote government officials as saying.

Under the planned Emission Trading Scheme (ETS), airlines using EU airspace will pay a fee for carbon emissions once they exceed a quota issued to them.

India and other nations argue that they will end up paying millions of dollars annually, a charge rejected by the EU.

''Airlines with more modern and efficient fleets, such as those in India, will be at an advantage compared to airlines with older fleets,'' the EU said in July. ''With a carbon price of some 13 (Rs853) per tonne and the majority of emissions rights allocated for free to airlines, the average extra cost to airlines will be less than $6 or Rs260 per passenger on, say, a London-Delhi round trip.''

Industry observers say the issue has mobilised the global airlines industry and a collective response is being looked forward to.  China, as is its wont, reacted unilaterally and after issuing threatening responses about not ordering Airbus aircraft has a won a reprieve of sorts with the EU promising to look at its anti-emissions action plan. 

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India mounts campaign against EU's carbon levy