[011013.EN.AIR] EU Seeks To Tax Carbon Until ICAO Can Devise And Enforce Its Own Tax

THE European Commission says it wishes to apply its own regional carbon tax on aviation emissions until the UN's International Civil Aviation Organisation (ICAO) can devise and enforce its own global tax, which is not expected for years.

"We should have our own regional scheme until then," said EU Climate Commissioner Connie Hedegaard. "Europe will have to regulate airline emissions. Those who can afford to fly should cover the cost of their emissions."

The European Union withdrew its own carbon tax scheme over protests from China, the United States, India and others because it taxed emissions beyond EU air space. But the EU only withdrew it for a year to give ICAO a chance to impose its own global tax.

The EU tax withdrawal was encouraged by a Chinese boycott of Airbus European-made long haul aircraft and the US prohibition on its airlines to assist in any scheme that facilitated European carbon tax collection.

Ms Hedegaard spoke as delegates from more than 190 countries worked at ICAO's Montreal full assembly to devise a tax with accords expected by some on Wednesday.

"But this scheme is not entering into force tomorrow," Ms Hedegaard told Reuters in an interview in New York, as she demanded the right to impose an interim carbon tax on aviation beyond EU airspace.

India and Vietnam said interim regulatory schemes should be banned and all references to such schemes should come from ICAO accords. India warned that regional schemes would lead to retaliatory action and create a patchwork of regulation that would be disruptive to global aviation.

Cameroon and Singapore said the carbon tax requires cost benefit analysis and more study on the impact the tax would have on aviation sectors in various countries.

Source : HKSG.