Is there growing international opposition to the ETS?

There's more than meets the eye in the EU carbon trading story unfolding this week

By ·

There’s more than meets the eye in the EU carbon trading story unfolding today.

Last week, John Mica, Petri and other members of the Committee led a bipartisan Congressional delegation to Montreal to meet with International Civil Aviation Organization (ICAO) leaders, representatives of the EU, and other officials regarding U.S. opposition to the EU’s tax scheme.  ICAO is the primary organization that sets international aviation standards.

If imposed on January 1, 2012, the EU aviation tax scheme would apply to U.S. and other nations’ flights into or out of an EU airport, regardless of how long that flight is in EU airspace.  Airlines would be required to pay an emissions tax to the EU Member State to which they most frequently fly, without any requirements that EU countries even use these fees in aviation emissions reduction efforts.

H.R. 2594 prohibits U.S. aircraft operators from participating in the ETS.  The bill also instructs U.S. officials to negotiate or take any action necessary to ensure U.S. aviation operators are not penalized by any unilaterally imposed EU scheme.

The Obama Administration testified before the House Committee on Transportation & Infrastructure in July that the EU ETS is inconsistent with international aviation law.  According to additional testimony from that hearing, the Air Transport Association suggested that this scheme would cost U.S. airlines more than $3.1 billion between 2012 and 2020, which could be used to sustain more than 39,200 U.S. airline jobs.  Moreover, these costs could double if the cost of carbon allowances in Europe returns to where it was within the past two years, in which case more than 78,500 U.S. airline jobs could have been supported.

There is growing international opposition to the ETS, said Mica.  He maintained that other nations that have voiced opposition include Argentina, Brazil, Chile, China, Colombia, Cuba, Egypt, India, Japan, the Republic of Korea, Malaysia, Mexico, Nigeria, Paraguay, Qatar, the Russian Federation, Saudi Arabia, Singapore, South Africa, the United Arab Emirates, and the member States of the Latin American Civil Aviation Commission (LACAC).

According to Mica’s office, even EU Member States, including Italy, the Netherlands, France, Belgium, and Spain, are calling for postponement of the EU ETS due to confusion over its implementation and opposition and potential retaliation from other nations.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Air Cargo · Air Freight · Global Trade · All Topics
Latest Whitepaper
Unlock the Value of Your Supply Chain Through Embedded Analytics
Learn how embedded analytics can provide deeper supply chain intelligence and help you extract maximum value from data for your supply chain operations
Download Today!
From the May 2017 Issue
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management, but what sort of technologies fall under these broad terms, and how will they change the management capabilities at our disposal? To find out, we talked to some noted supply chain analysts, consultants and technology executives and gathered six digital trends to watch.
Transportation Trends and Best Practices: The Battle for the Last Mile
2017 Technology Roundtable: Are we closer to “Intelligent” Logistics?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Going Beyond Rate Negotiations for Logistics Cost Savings
The pressure to reduce cost is a fundamental part of every organization today leaving many supply chain professionals constantly renegotiating rates. This webcast examines four areas that may hold untapped savings potentials and even help organizations negotiate better rates.
Register Today!
EDITORS' PICKS
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...

LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...