Airlines Say EU Pollution Scheme Could Cause ‘Trade War’

Airliners around the world renewed their call against the European Union to dismantle a carbon trading scheme, which they say is risking a trade war, and hampers a global solution to reduce emissions.

The International Air Transport Association, which represents 240 airlines around the world, called on the EU to rid itself of “unilateral and extra-territorial inclusion of international aviation in its emissions trading scheme,” said Tony Tyler, the group’s chief, according to a statement.

Europe’s carbon trading scheme forces airlines to cut pollution by placing a fee on the amount of carbon emitted during entire flights involving Europe—not just on emissions over the continent itself. Critics have said the move interferes with their national airspace.

The emissions trading scheme is “creating discord when we need harmony” and the only way to curb emissions is by doing it on a global scale, Tyler said.

But such an agreement “is impossible under current conditions,” he said. “Europe seems more committed to implementing its [emissions trading scheme] unilaterally than to sincerely negotiating a multilateral agreement. For Europe’s international counterparts it’s like being asked to negotiate with a gun to their head.”

China and India have already ordered their airlines to not cooperate with the trading scheme, which could risk a trade war.

The EU has argued that the plan is necessary to meet targets in reducing pollution, saying that little progress has been made to achieve a worldwide scheme to curb emissions.

“Sustainability should unite the world with common purpose, not divide it with affronts to sovereignty that risk a trade war, a war that nobody wants and from which no winner can emerge,” Tyler added.