India has threatened to review the benefits it provides to European airlines, as it mounts its opposition to the European Union’s (EU) move to impose a carbon tax on carriers operating to and from Europe, a source said. Under a Horizontal Aviation Agreement between India and the EU, the Indian administration allows European airlines to operate flights between India and any EU member-state.
The tax, which airlines flying into or out of EU airports have to pay to cover Carbon Dioxide emissions during their flights over European skies, has come into effect from January 1. The move was criticised by several nations including the US, China, Brazil, Russia, Japan and India, according to a report by PTI. “Efforts are on to resolve the issue... But if they do not exempt India from this, we may review our horizontal agreements with them and place some restrictions,” the source said, while speaking on the proposed retaliatory measure. Pranab Mukherjee, Minister – Finance, Government of India also strongly opposed the EU plan at the last G20 meeting. “India believes that some measures like the Carbon Export Optimisation Tax...Violate the principles of the Convention (United Nations Framework Convention on Climate Change) as their incidence falls entirely on developing countries and these cannot be recognised as a source of new and additional finance for climate change,” Mukherjee had said. The move has not gone down well with the aviation industry either, with global airlines body, International Air Transport Association (IATA), strongly opposing it. United Nations body International Civil Aviation Organisation (ICAO) Council, of which India is a member, has also criticised the EU plan to charge airlines for carbon emissions. At its meeting last month, the ICAO described the plan as “discriminatory and violative of global laws”. ICAO members are again meeting in New Delhi in mid-February to discuss the issue. “All the members will again review the situation and finalise the way of action,” the source said, adding that the EU move would also increase transaction costs for Indian exporters. India will also raise the matter during the India-EU Summit on February 10. The ICAO meet in Delhi in September last year, attended by about 30 countries, had unanimously adopted the Delhi Declaration opposing the EU plan.
Click here to see the original article>The tax, which airlines flying into or out of EU airports have to pay to cover Carbon Dioxide emissions during their flights over European skies, has come into effect from January 1. The move was criticised by several nations including the US, China, Brazil, Russia, Japan and India, according to a report by PTI. “Efforts are on to resolve the issue... But if they do not exempt India from this, we may review our horizontal agreements with them and place some restrictions,” the source said, while speaking on the proposed retaliatory measure. Pranab Mukherjee, Minister – Finance, Government of India also strongly opposed the EU plan at the last G20 meeting. “India believes that some measures like the Carbon Export Optimisation Tax...Violate the principles of the Convention (United Nations Framework Convention on Climate Change) as their incidence falls entirely on developing countries and these cannot be recognised as a source of new and additional finance for climate change,” Mukherjee had said. The move has not gone down well with the aviation industry either, with global airlines body, International Air Transport Association (IATA), strongly opposing it. United Nations body International Civil Aviation Organisation (ICAO) Council, of which India is a member, has also criticised the EU plan to charge airlines for carbon emissions. At its meeting last month, the ICAO described the plan as “discriminatory and violative of global laws”. ICAO members are again meeting in New Delhi in mid-February to discuss the issue. “All the members will again review the situation and finalise the way of action,” the source said, adding that the EU move would also increase transaction costs for Indian exporters. India will also raise the matter during the India-EU Summit on February 10. The ICAO meet in Delhi in September last year, attended by about 30 countries, had unanimously adopted the Delhi Declaration opposing the EU plan.