Carbon emission tax row heats up

The International Air Transport Association (IATA) has called for the United Nations to broker a deal between airlines and the European Union on the EU Emissions Trading Scheme.
Widely reported by the international media, the call came days after China banned its airlines from joining the scheme, which levies a charge on flights in EU airspace based on carbon emissions.
IATA said if not resolved quickly, the issue could hurt all parties involved. Director-general Tony Tyler said: “I very much hope of course that we are not seeing the beginning of a trade war on this issue and eventually wiser counsels will prevail.”
In a case heard by the European Court of Justice the United States tried to block the introduction of emissions charges. However, the court has ruled that they were legal.
Now the US wants the issue handled by an international aviation body. It, along with Canada, says the charges levied under the scheme violate climate change and aviation pacts.
China says the ETS could cost Chinese airlines as much as 95m euros in extra annual costs. SAA would also be hit by higher costs if the EU plan went ahead.
Tyler said given the opposing stands taken by the various parties, the International Civil Aviation Organization (ICAO), the United Nations’ aviation standards agency, was the appropriate body to help find a solution.
He called on the EU to play a greater role in the discussions at the ICAO aimed at finding a solution to the issue.