As kids we were warned not to poke at wasps nests by our elders (and sometimes betters), writes John Barrington-Carver.
Having been stung a couple of times myself without so much as having even looked at the dratted insect I have always heeded this sage advice.
It’s a pity therefore that the EU has ignored the current angry stirrings emanating from aviation’s international hive of industry. This followed Brussels’ earlier unilateral decision to include all international airlines using EU airspace in its existing EU Carbon Emissions Trading Scheme (ETS), thereby exacting an estimated €1.4 billion annual tribute to the EU’s coffers.
The scheme, implemented from 1 January, levies a charge on flights in EU airspace based on carbon emissions. An initial consequence when the scheme was originally announced was that the US challenged the legality of the ETS at the European Court of Justice.
Subsequently, the Chinese threatened to cancel their Airbus orders thus endangering thousands of jobs.
It’s perhaps not surprising, since the case was heard in the EU Court of Justice, that the US lost the case last month. Bolstered by the Court decision, the EU continues to blithely ignore these and other objections to the ETS.
Consequences for consumers are that yet another tax will be passed on to them by airlines which operate on wafer-thin margins.
However, “poking a nest” by unilaterally trying to impose legislation and taxes on other sovereign states will certainly have further consequences. More opposition is growing as 43 countries have already publicly objected to the EU plans.
Both China and India have already instructed their airlines not to comply and similar legislation is moving through the US Congress. Reportedly further legal challenges are in the pipeline. China has claimed that the plan could cost Chinese airlines €95m in extra annual costs. British Airways faces a bill of nearly €50m, the highest of any airline.
Unsurprisingly, the International Airline Association (IATA) representing 93 per cent of the world’s airlines has labelled the EU “Tax Bandits”.
It’s not that the aviation industry objects to being in an emissions trading scheme – far from it! The air transport industry has made global commitments to improve fuel efficiency by 1.5 per cent annually to 2020, to cap net emissions from 2020 and to cut net emissions in half by 2050 (compared to 2005 levels). IATA has also championed an international initiative by the United Nations’ ICAO (International Civil Aviation Organisation) which already has 120 or more countries agreeing to it and which would put all airlines on a level international playing field as regards emissions trading.
If the EU are committed to including aviation in some form of carbon trading scheme they should support a global initiative that is ratified internationally rather than go it alone thus endangering EU jobs, international relations and unilaterally extracting fees from international airlines to top up EU coffers. Brussels bureaucrats comfortably isolated from the consequences of poking this particular nest should have a regard for the potential for harm this legislation could do to their individual EU members’ economies if the rest of the world should retaliate as looks very possible.
(Image: alleswasfliegt)
