Tuesday, June 12, 2012
The latest war of words in the ongoing dispute over the EU's Emissions Trading Scheme (ETS) suggests that the conflict may come to a head this week. According to Reuters, EU Climate Commissioner Connie Hedegaard threatened enforcement action against Chinese carriers that fail to submit emissions data by the end of this week. The Chinese government prohibited its carriers from complying with the original March 31 submission deadline and the article quotes a Chinese official as saying the government's position will not change. Instead, China threatened retaliation for any sanctions imposed on its carriers, expressing a willingness to impound EU aircraft if necessary. While both sides reiterated their desire to avoid a trade war, it appears serious diplomatic efforts will be necessary over the next few days or initial hostilities may commence.