India, 22 other countries move to counter EU carbon tax

India and 22 other countries, including Russia, China and the US, will impose additional levies on carriers and plane manufacturers belonging to European Union states as a counter to the emission tax imposed unilaterally by the EU on all foreign carriers using it skies.

The EC had issued a directive to airlines and aircraft operators registered in third countries that effective January 2012, all flights operating on its skies are liable for payment of a 15 per cent of the cost of compensating for the CO2 (carbon dioxide) emitted during landings or take offs from Europe under the Emission Trading System (EU-ETS).

The 23 non-EU member countries of the International Civil Aviation Organisation (ICAO) met in Moscow and issued a joint declaration urging member states of the ICAO to file applications under Article 84 of the Chicago Convention for resolution of the dispute according to the ICAO rules for the settlement of differences.

They will also use existing or new state legislation, regulations or other legal mechanisms to prohibit airlines/aircraft operators from participating in the EU-ETC.

The countries will hold meetings with the EU carriers or their aviation enterprises and apprise them about the concerns arising out of the EU-ETS before taking reciprocal state measures, which may adversely affect those airlines and/or entities.

It will be mandatory for EU carriers flying to these countries to submit flight details and other data so as to assess whether the EU-ETS is consistent with the WTO agreements and taking appropriate action.