The US Senate Committee has approved a bill that could prohibit American carriers from participating in the EU’s Emissions Trading Scheme (ETS).
The bill, which is similar to a bill already passed by the House of Representatives, gives the US Transport Secretary Ray LaHood discretion to order airlines not to comply with the EU. LaHood has already stated his opposition to the ETS.
US airline representative body, Airlines for America (A4AP), said it welcomed the move.
“This important legislation and the committee’s approval sends a strong message to the… EU that Congress objects to this unilateral taxation scheme that will not benefit the environment,” said A4A’s President & CEO, Nicholas Calio. “Diplomacy is not working, and we encourage the administration to file a legal challenge, forcing the EU to work toward a global sectoral approach through the International Civil Aviation Organization (ICAO).”
The ICAO approach has been requested by several other countries, most notably China, which has already ordered its airlines not to comply with EU authorities over the tax. In an effort to unify this call, the US is currently hosting a meeting of countries opposed to the ETS. The meeting in Washington DC is seeking to create a global alternative that would include the EU. For its part, the EU has said it will commit to a global, ICAO-led solution if it matches the levels set by the ETS.
Separately this week, a collective of 19 US industry groups including A4A called on the Obama administration to file an action under the Chicago Convention in an effort to overturn the ETS. There is a wide view that the ETS violates the Chicago Convention by imposing an extra-territorial tax on kilometres flown outside EU airspace.
The bill passed by the US Senate meanwhile, would still need presidential approval, and while President Obama has said he disapproves of the ETS, it remains to be seen whether he would pass a bill that would place the US in direct conflict with the EU, risking a potential trade war. The first ETS payments are due in April 2013.
