Business

EU Airlines Warn: Emissions Trading Scheme Will Spark a Trade War, Russia and China Not Bluffing

EU Airlines Warn: Emissions Trading Scheme Will Spark a Trade War, Russia and China Not BluffingAs reported by The Blaze last month, China has ordered its airlines to flat-out ignore the European Union’s emission trading scheme (ETS).

And China is not alone in its opposition.

Airbus, the plane manufacturer, and several EU airlines have also lobbied the EU Commission to rethink its approach to reducing carbon emissions.

“Airbus and a group of European airlines issued another warning that the European Commission faces sparking a trade war after extending its emission trading scheme to the global industry,” The Wall Street Journal reports.

The plane maker says China has already suspended a $12 billion jet deal because of the scheme and warns “more retaliation is imminent” unless the eurozone backs off (or at least reconsiders) its ill-advised plan.

“These threats are now real and being translated into concrete action,” Airbus warned in a letter last week to EU leaders and German Chancellor Angela Merkel, co-signed by Deutsche Lufthansa AG, Air Berlin PLC and engine maker MTU.

It should be pointed out that theirs is not the only letter. In fact, it is one among many similarly worded correspondence from businesses including Air France, Virgin Atlantic, and engine maker Safran that have been sent to the leaders of the U.K, France, and Spain.

“This is starting to have serious consequences on the European aviation business and could proliferate at any moment,” the letter to Merkel said. The letter goes on to warn that, like China, India and Russia have also threatened to limit EU carriers’ traffic rights and raise charges for EU carriers.

However, Chinese officials claim they haven’t suspended any billion dollar deal.

The Chinese government “will respect the views of the airlines” when ordering planes, a spokeswoman for the Civil Aviation Administration of China said Monday. She also said that the Chinese government would prefer “to reach a resolution through negotiation,” according to Journal report.

But whether or not China actually halted the lucrative deal, there are other reasons that the plane manufacturer might want to see a halt (or at least revision) to the EU’s emissions-trading plan.

For starters, the scheme will cost the airline industry an estimated €9 billion ($11.8 billion) by the end of 2020, Reuters reported when the European Court of Justice ruled that the 2008 law was reasonable and “fair.”

EU Airlines Warn: Emissions Trading Scheme Will Spark a Trade War, Russia and China Not BluffingIt has also been estimated by the European Commission that costs per passenger will increase by €2 ($2.60) to €12 ($15.60) for airlines participating in the cap-and-trade program.

“British Airways and Iberia, both signatories to the letters sent to political leaders March 9, said last week that the ETS would leave them with a net ‘exposure’ of €70 million this year,” the Journal reports.

The U.S. has also joined in protesting the ETS.

Should the EU continue in this direction, the U.S. “will be compelled to take appropriate action,” Secretary of State Hilary Clinton said in a letter addressed to the European Commission last December.

“The U.S. has said 41 countries have registered objections to the emissions trading system as a unilateral action in breach of international law. Lawmakers are pushing bills that would ban U.S. airlines from complying,” the Journal reports.”

Whether EU officials will heed the warnings of the airline industry has yet to be seen.

“Countries opposing the ETS are due to meet again in Saudi Arabia later this year but the Commission has shown no signs of willingness to suspend the scheme, which came into force on Jan. 1,” the Journal reports.

Comments (23)

  • the_united_states_of_britain
    Posted on March 13, 2012 at 8:52pm

    You dont have to travel to Europe, If you dont want to pay the tax. If any country doesn’t want to pay,its pretty simple. Don’t fly here. If Chinese planes won’t fly here. It will just help the European airlines.

    Global warming is real. That doesn‘t mean the earth doesn’t go through cycles of hot and cool spells. But man made pollutants are speeding up the process. Don’t be ignorant.

    Love Europe x

    Report Post » the_united_states_of_britain  
  • TheLeftMadeMeRight
    Posted on March 13, 2012 at 9:08am

    I own a small farm and I was invited to attend a meeting of the now defunct Chicago Climate Exchange as they presented this newest part of the global warming scam. The farmers were told CCX would pay approximately 4 dollars per acre of wheat grown as an example, because wheat gives off more oxygen than let’s say corn. These so-called “carbon credits” are then put in the form of a certificate and then sold to an industrial businesses that is supposedly pumping out excessive greenhouse gases. The idea is the company will offset the pollution in a major city such as Chicago with carbon credits purchased in Iowa or Wisconsin, and of course CCX would have taken their cut.

    Yet another grandiose moneymaking feel-good scheme from the left, all in the name of saving the planet.

    Report Post » TheLeftMadeMeRight  
    • watchtheotherhand
      Posted on March 13, 2012 at 10:16am

      Anthropogenic Global Warming —– The greatest hoax thrust upon modern man. Again, a false religion (Mother Earth worship) is used to enslave and oppress populations all in the name of salvation. It will bring in a new era of global tyranny and control the likes of which have never been known before on a global scale. Evil men in power either knowingly or sincerely will use the fabricated emergency to steal libirties and freedoms in exchange for “safety”. The sad thing is many will be glad to hand it over to them….If we are to be mothered, mother must know best. . . . In every age the men who want us under their thumb, if they have any sense, will put forward the particular pretension which the hopes and fears of that age render most potent. They ‘cash in.’ It has been magic, it has been Christianity. Now it will certainly be science. . . . Let us not be deceived by phrases about ‘Man taking charge of his own destiny.’ All that can really happen is that some men will take charge of the destiny of others. . . . The more completely we are planned the more powerful they will be…..

      Report Post » watchtheotherhand  
    • watchtheotherhand
      Posted on March 13, 2012 at 10:16am

      Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience. They may be more likely to go to Heaven yet at the same time likelier to make a Hell of earth. Their very kindness stings with intolerable insult. To be ‘cured’ against one’s will and cured of states which we may not regard as disease is to be put on a level of those who have not yet reached the age of reason or those who never will; to be classed with infants, imbeciles, and domestic animals.
      —C. S. Lewis

      Report Post » watchtheotherhand  
    • 4XGrace
      Posted on March 13, 2012 at 12:09pm

      Global Warming by man … Political Truth not supported by Scientific Fact.

      Report Post » 4XGrace  
  • Stoic one
    Posted on March 13, 2012 at 12:26am

    HEY! be nice! this is the first non-male president…….no balls.

    Report Post » Stoic one  
  • sbenard
    Posted on March 13, 2012 at 12:20am

    Smoot-Hawley Tariff redux. Depression this way comes!

    Report Post » sbenard  
    • Ruler4You
      Posted on March 13, 2012 at 8:19am

      These things were all gamed out. This was a known consequence. And, IMHBLO, “IS” a facet of the obango “redistribution of wealth” policy established as a fundamental foundational plank of his platform during his campaign.

      This “IS” not a surprise. This was planned. The ‘story’ “IS” a heads up for coming economic disparity expected due to the genuflection of western world technology in the effort to achieve “economic” parity on a global scale. Which can not be achieved without the accompanying transfer of technological intelligence.

      How can a “global government” be achieved without symmetry?

      Report Post » Ruler4You  
  • Nobummer
    Posted on March 13, 2012 at 12:01am

    Apparently, the Chicoms have found the pair we used have before the Commies dispatched to US neutered us. China doesn’t play these stupid games. When they do a margin call and take over, we might wind up in sweat shops, but at least we’ll have some political leadership. Our dictator is an embarrassment.

    Report Post »  
    • cookcountypatriot
      Posted on March 13, 2012 at 12:55am

      lolololllllll…..egggselent

      Report Post » cookcountypatriot  
    • pamela kay
      Posted on March 13, 2012 at 4:02am

      This is totally unrelated but I was watching FOX and the screen went black and then it was a test for the EAS. After the test it showed a screen that stated THIS IS A EAS CHANNEL. I have Dish network. Anyone else here that has seen this?

      Report Post » pamela kay  
  • TheObamanation
    Posted on March 12, 2012 at 11:51pm

    I’ll have to side with Communist China on this one … Environmentalists are even more radical than the commies … who woulda thunk.

    Report Post » TheObamanation  
  • Netsurfer2
    Posted on March 12, 2012 at 11:37pm

    I’m glad that China is holding up to these environmentalists! It’s about time we all stand up and say “no more will you impose upon us”!

    We can drill our own oil, recreate industries that made America great and tell the rest of the world to shove it!

    We should kick the UN out of America for good!

    Report Post » Netsurfer2  
  • Darmok and Jalad at Tanagra
    Posted on March 12, 2012 at 11:10pm

    Never enter a war of wits with the witless, they will drag you down to their level. When entering a trade war, you have to have something to trade. The only thing Europe is knee deep in is smelly communist students, fried snails, bad attitudes, and lots of whine. If the world needs more Body Odor, they got the market cornered. But hey, if we suddenly need small crappy cars we could merge one of our car companies with them….Chryser/Fiat? Man that Fiat 500 is so great….it fits in the back of my Pick up. I use it as a spare tire, Just shove it under the flat tire and drive to the service station.

    Report Post » Darmok and Jalad at Tanagra  
    • NOTYERHUCKLEBERRY
      Posted on March 13, 2012 at 12:26am

      OOOH, I love it! Saw one of those clown cars today. Anyone who thinks that Fiat can build a car needs to be locked up for their own good.
      As far as carbon footprint is concerned, the EU can lick my sa+k. Ain‘t goin’ to play your game, Bud!

      Report Post »  
  • Mikev5
    Posted on March 12, 2012 at 10:44pm

    The EU can eat my shorts trying impose fines on other airlines if they don’t comply to their strict gangster tactics.

    Global warming insanity at its best if they have it their way we will all starve to death soon with this insanity we should all snub our nose to what they want from us.

    Report Post » Mikev5  
  • amerbur
    Posted on March 12, 2012 at 10:43pm

    Mor attempts to cram cap and trade down our throats even though Congress voted against it and it is a giant scam to make a bunch of crooks rich. Time to throw the crooks in jail.

    Report Post »  
  • AxelPhantom
    Posted on March 12, 2012 at 10:42pm

    Between the hassles of HLS and the price increases that are coming, if you wanted to go to Europe for a vacation, the one way cruises offered by cruiselines are looking better and better.

    Report Post »  
  • Smokey_Bojangles
    Posted on March 12, 2012 at 10:40pm

    I hope everyone jumps on the Bandwagon with China.This crazy Al Gore crap has to stop before everyone is ruined!

    Report Post » Smokey_Bojangles  
    • Hickory
      Posted on March 12, 2012 at 10:47pm

      All this cap and trade mess is nothing more than a scam to steal money. If Algore was so afraid of rising ocean levels, why did the lying piece of crap buy a beach house at Malibu?

      Report Post » Hickory  
    • dmforman
      Posted on March 12, 2012 at 11:18pm

      And why does he fly on a private jet?

      I wish there was a way to list those that have made money from this scheme. Many movers and shakers I am sure would be on the list.

      Report Post »  
  • Snowleopard {gallery of cat folks}
    Posted on March 12, 2012 at 10:38pm

    One more classic demonstration of the socialist insanity from Europe Obama wants to drag us into.

    Report Post » Snowleopard {gallery of cat folks}  

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