EU seeks to stop the clock

President Obama has signed the bill prohibiting US airlines from participating in the EU’s emissions trading scheme. More

The European Commission has suggested to the EU Member States that the clock be stopped for one year. But failure by ICAO to deliver will result in automatic resumption of the process and the EU ETS legislation would be enforced.

“As a gesture of good faith the EU will “stop the clock” on the implementation of the international aspects of its ETS aviation by deferring the obligation to surrender emissions allowances from air traffic to and from the EU by one year. This means that the EU would not require allowances to be surrendered in April 2013 for emissions from such flights during the whole of 2012. The monitoring and reporting obligations will also be deferred for such flights. The obligations relating to all operators’ activities within EU will remain intact and compliance with the EU law will be enforced in this respect.” more

On 21 December 2011 the European Court of Justice upheld the legislation stating that it does not infringe the principles of territoriality or third country sovereignty. The Court also stated that the EU ETS does not constitute a tax, fee or charge on fuel, which could be in breach of the EU-US Air Transport Agreement. It concluded that the uniform application of the EU ETS to all flights which depart or arrive from the EU is consistent with provisions designed to prohibit discriminatory treatment between aircraft operators on nationality grounds also covered by this agreement. more