Isra-Mart S.R.L.: U.S. seeks exemption to E.U. aviation carbon dioxide plan

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The United States demanded on Wednesday that the European Union exempt United States airlines from an European Union law widening carbon permits to aviation, hardening a standoff over a scheme due to start in 2012.

After talks in Oslo, the European Union insisted it would not back down on its unilateral plan to penalize greenhouse gas emissions from planes taking off and landing in the European Union as part of efforts to slow climate change.

"We clearly stated our strong objections to the European Union plans on both legal and policy grounds," a United States administration official told a telephone news conference after talks between European Union and United States negotiators.

In the strongest public criticism of the European Union carbon scheme to date by President Barack Obama's administration, Washington said United States airlines should be exempt from greenhouse gas penalties.

The official, who spoke on condition of anonymity like all other delegates, said the European Union was using "the wrong way to pursue the right objective" of slowing global warming that is predicted to cause more droughts, floods and rising sea levels.

The European Commission said there were no plans to back down, echoing statements by President Jose Manuel Barroso earlier this month.

"The Commission is ready to consult at any time, but there should be no illusion – the E.U. does not intend to withdraw or amend the ... directive. It is established European Union law," a European Union official at the meeting told Reuters.

Courts

Several United States airlines are challenging the European Union measure in European courts. Washington said its demands in Oslo focused on an exemption, not to try to get the European Union to scrap the scheme.

"The demand we made is that the E.U. Emissions Trading Scheme should not apply to U.S. carriers. We did not talk about how that might be done," another United States official said.

Washington has no plans to match the European Union move from January 1, 2012, when the European Union will require all airlines flying to Europe to be included in the E.T.S., a system that forces polluters to buy permits for each metric ton of carbon dioxide they emit above a certain cap.

China has also strongly opposed the European Union plan, saying it will cost Chinese airlines 800 million yuan ($123 million) in the first year and more than triple that by 2020.

United States officials declined to speculate about what might happen on January 1, 2012, if the deadlock is unresolved. The European Union has said it will impose fines for non-compliance.

The European Union is aiming to cut greenhouse gas emissions by 20 percent below 1990 levels by 2020, or by 30 percent if other nations also set tough goals in stalled United Nation negotiations on a United Nation treaty to slow global warming.

Mr. Obama wants strong United States action to slow climate change but has been unable to persuade the United State Senate to pass a law to cut United States emissions by 3-4 percent below 1990 levels by 2020.

The officials said Washington was working to cut emissions from aviation, including with a Next Generation Air Transportation System.

Annie Petsonk, of the United States Environmental Defense Fund, said the Obama administration had a choice.

"It can stand in the way of the only program in the world that sets enforceable limits on carbon pollution from aviation, or it can begin to craft a program that taps the ingenuity of this dynamic sector to cut pollution, lower costs and reduce America's dependence on imported oil," she said.