Europe's new carbon tax may trigger a damaging trade war, the head of plane manufacturer Airbus said today, amid a widening split in the global aviation industry over the unpopular duty. "I have to say I'm really worried also as a manufacturer about the consequences,
" Thomas Enders, Chief Executive, Airbus told a conference on the eve of the Singapore Airshow. "I have seen the position in China, in Russia, in the US, in India, and what started as a scheme to present a solution for the environment has become a source of potential trade conflict," he added. The European Union imposed the Emissions Trading Scheme (ETS) on January 1, 2012; but over two dozen countries, including India, Russia, China and the United States, have opposed the move, saying it violates international law. The EU has said the scheme was designed to reduce carbon emissions blamed for climate change, and will help the 27-nation bloc achieve its goal of cutting emissions 20.0 percent by 2020. But China has barred its airlines from complying with the requirement while Europe's low-cost carriers accused their Chinese and US rivals of employing "gunboat" diplomacy in opposing the scheme. Tony Tyler, Director General of the industry group International Air Transport Association (IATA), also warned about the impact that the escalating conflict would have on the industry. "Aviation can ill-afford to be caught in an escalating political or trade conflict over the EU-ETS," he said at the Singapore conference, according to an AFP report.
Click here to see the original article>" Thomas Enders, Chief Executive, Airbus told a conference on the eve of the Singapore Airshow. "I have seen the position in China, in Russia, in the US, in India, and what started as a scheme to present a solution for the environment has become a source of potential trade conflict," he added. The European Union imposed the Emissions Trading Scheme (ETS) on January 1, 2012; but over two dozen countries, including India, Russia, China and the United States, have opposed the move, saying it violates international law. The EU has said the scheme was designed to reduce carbon emissions blamed for climate change, and will help the 27-nation bloc achieve its goal of cutting emissions 20.0 percent by 2020. But China has barred its airlines from complying with the requirement while Europe's low-cost carriers accused their Chinese and US rivals of employing "gunboat" diplomacy in opposing the scheme. Tony Tyler, Director General of the industry group International Air Transport Association (IATA), also warned about the impact that the escalating conflict would have on the industry. "Aviation can ill-afford to be caught in an escalating political or trade conflict over the EU-ETS," he said at the Singapore conference, according to an AFP report.