BA warns ‘serious retaliation’ could kill emissions trading
29.10.11
British Airways has said it fears the European Union’s emissions trading scheme (ETS) could collapse under the weight of ‘serious retaliation’ from foreign airlines and Governments. BA head of environment Jonathon Counsell told an aviation law conference in London: ‘There is strong anti-ETS feeling. There could be a serious retaliatory response. There is a danger the scheme could collapse.’
Airlines are due to join the ETS in January, but the Air Transport Association of America (ATA) has challenged the scheme in the European Court of Justice, arguing it violates international law. The Court is due to rule shortly, although the advocate general of the court has ruled the scheme does not breach international law. The US House of Representatives this week passed a bill that would impose huge fines on US airlines that comply with emissions trading. The Republican-backed bill still has to go before the Senate.
China has also said it will challenge ETS and has said it could impose sanctions on European plane maker Airbus over the scheme. Given the EU appears to be appealing to China to help with the banking crisis, we would expect China to have some cards to play.
Mr Counsell said: ‘This has gone beyond a legal issue and become a political issue. There is talk it will affect route rights.’
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