Isra-Mart srl: US airlines to play no part in "ill-advised and illegal" emissions trading scheme

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US politicians have stepped up their sabre-rattling over the EU's plans to include aviation in its emissions trading scheme, declaring unequivocally that US airlines will not participate.

The bi-partisan Congressional Transportation Committee introduced a bill last week that would legally prevent US carriers from taking part in the cap-and-trade scheme, which will charge all airlines per tonne of CO2 for all flights in and out of the EU from next year.

Its national trade body is also embroiled in a legal battle at the European Court of Justice, where it is claiming that the scheme is effectively a tax that contravenes international law.

Congressional leaders and witnesses told an aviation subcommittee hearing on Capitol Hill yesterday that US airlines would pay more than $3.1bn to the EU by 2020, slightly down on other forecasts, which would damage an already teetering industry badly and see substantial layoffs.

"This appropriately named EU 'scheme' is an arbitrary and unjust violation of international law that disadvantages US air carriers and kills US aviation jobs," said John Mica, a Republican from Florida who chairs the House Transportation and Infrastructure Committee. "The message from Congress and the US government is loud and clear: the United States will not participate in this ill-advised and illegal EU programme."

The EU argues that the ETS is neither a tax nor a charge, but a pollution ceiling and the inclusion of aviation is fully consistent with international law.

However, this is not a view shared on the other side of the Atlantic and the US remains aggrieved that attempts to have its airlines excluded from the scheme fell on deaf ears.

"The European Union is not sovereign over the United States or the rest of the world, and has no right to levy taxes outside of the EU," said Representative Tom Petri, a Wisconsin Republican. "Since the EU has shown no interest in working with the international community to address their concerns and objections and to seek a global approach to civil aviation emissions, we believe that the United States should not participate in their unilateral and questionable ETS programme."

The standoff and aggressive legislation tabled in the US has led to fears of a trade war, something European airlines are desperate to avoid. While keen to reduce the sector's soaring emissions, they would prefer a global deal to be worked out by International Civil Aviation Organisation.

Earlier this week, Ulrich Schulte-Strathaus, secretary-general of the Association of European Airlines, urged the EU to sit down with its American counterparts and head off the growing tensions.

"With the ETS clock ticking very loudly now, we have once again urged the Commission to address the issues being raised by Europe's major trade," he said. "Our position is clear: European carriers must not be caught in the political crossfire."