Monday, March 19, 2012

India to Join China in Barring Airlines from Participating in EU ETS

India is set to become the second State to instruct carriers not to comply with European Union officials in regards to the Emissions Trading Scheme. See Anurag Kotoky, India to Ask Airlines to Shun EU Carbon Scheme, Reuters, March 19, 2012 (available here). China was the first State to announce its carriers would not participate. See Aviation Law Prof Blog, Jan. 4, 2012 (available here). According to the report, Indian officials have discussed suspending EU carriers from flying to India and charging exorbitant overflight fees should the dispute escalate. The government official quoted in the Reuters story delivers the most aggressive threats levied against the EU to date, including, "We have lots of measures to take if the EU does not go back on its demands. We have the power of the economy, we are not bleeding as they are," and, "If things continue like this, then European airlines will be forced to avoid flying over India and go over the Indian Ocean and the Bay of Bengal. That's not viable for them. They won't have fuel to do that." While last week brought hopeful updates on the possibility of ICAO brokering a global solution, today's news is a reminder of what is at stake should ICAO fail.

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