in Air Transport

EU's controversial emissions tax is nailed by new Resolution

Posted 5 October 2013 · Add Comment

The ICAO climate agreement has finally put to bed the threat of the European Union's Emission Trading Scheme (ETS) – dubbed an unfair tax on airlines and bitterly opposed by airlines and governments outside the EU.

The controversial scheme had been suspended by the EU amid the opposition by nations ranging from the USA to the UAE, China and India.

Amendments approved by the ICAO executive committee yesterday included the removal of a clause that would allow member states to implement market-based measures that apply to flights to or from third countries that arrive in or depart from airports in those states.

Instead, the agreement now calls for member states to "engage in constructive bilateral and / or multilateral consultations and negotiations" with other states when creating new and implementing existing market-based measures.

Another amendment to the proposals brought additional relief to  nations in the Middle East and Africa identified as “developing countries”

ICAO Member states will in future be required to grant exemptions for applying such market-based measures on routes to and from developing countries whose share of international civil aviation activities is below 1% of total revenue /ton kilometres of international civil aviation activities, before a global scheme is rolled out.

Reports from Flightglobal say member states voted 97 to 39 to drop the clause that would have allowed individual states to launch their own market-based measures.

 

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