Airlines for America calls on US government to block EU ETS

WASHINGTON, DC – Airlines for America (A4A), the industry trade organization for the leading U.S. airlines, today called on the United States to take immediate action to halt the application of the European Union Emissions Trading Scheme (EU ETS), which seeks to unlawfully tax U.S. airlines and establishes a dangerous precedent that could be used to tax the products and services of other U.S. industries.

“Urgent, concrete action by the United States is needed to overturn the EU ETS and bring the EU back to the negotiating table in support of a global framework,” said A4A Vice President, Environmental Affairs Nancy Young, testifying today before the Senate Commerce Committee. “The United States, in its role as a world leader, must wield the tools it has to remove the wrong measure in favor of the right one.”

A4A urged the United States to initiate a legal challenge under Article 84 of the Chicago Convention through the International Civil Aviation Organization (ICAO) in order to drive the EU to negotiate a resolution. ICAO has authority to address violations of the Chicago Convention and also is working to complete the global framework for aviation greenhouse gas emissions provisionally agreed at its 2010 Assembly.

A4A, its members and every impacted non-EU country opposes the application of this cap-and-trade tax scheme to airlines and aircraft operators, and are committed to seeing it overturned. As currently administered, U.S. carriers must account for emissions on the ground in the United States, across Canada and across the open seas, paying tax on 100 percent of the emissions of flights to and from the EU, even though only a small portion of those emissions occur in EU airspace. The funds collected do not have to be used for environmental purposes and in fact can be used to stave off Europe’s debt crisis.

Young noted that aviation is not the only U.S. sector at risk. “Simply put, if the EU can tax the emissions over the entirety of a flight merely because it touches down in Europe, what is to keep the EU from imposing greenhouse gas import taxes on U.S. autos, pharmaceuticals, chemicals and other goods? And on what basis will the United States stand up against other countries that seek to do the same?” Young said.

Several countries, including India and China, have prohibited their airlines from participating in the EU scheme. The U.S. House of Representatives has taken similar action and A4A today called on the Senate to pass S. 1956, the European Union Emissions Trading Scheme Prohibition Act, which would similarly prohibit U.S. carriers from participating in the EU ETS.