Goodbye Blue Sky: European Court Backs Law Forcing ‘Emissions Trading Scheme’ On U.S. Airlines
- Posted on December 21, 2011 at 7:45pm by
Becket Adams
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International airlines lost a fight against the European Union’s (EU) planned expansion of its carbon cap-and-trade system, to which Europe’s highest court gave unreserved backing on Wednesday.
The court’s ruling came after United Continental Holdings, American Airlines, and the Air Transport Association of America challenged the EU’s attempt to extend the world’s largest cap-and-trade program beyond its borders. At a hearing in July, the airlines said the plan to extend the EU carbon market to flights that depart from or arrive at an airport in the region was unlawful.
Despite their efforts, the EU Court of Justice “confirms the validity of the directive that includes aviation” in the emissions-trading program, the Luxembourg court ruled today.
“Application of the emissions trading scheme to aviation infringes neither the principles of customary international law at issue, nor the open-skies agreement,” the European Court of Justice (ECJ) said.
EU Climate Commissioner Connie Hedegaard, who has used the carbon trading scheme is one of her “main weapons to combat climate change,” gleefully welcomed the decision.
“After a crystal-clear ruling today, the EU now expects U.S. airlines to respect EU law as the EU respects U.S. law,” she said in a Twitter posting.
“We reaffirm our wish to engage constructively with everyone during the implementation of our legislation,” she added in a statement.
So what does this mean?
It means that the EU law will now charge airlines for carbon emissions on flights to and from Europe. Beginning January 1, all airlines flying into or out of European Union airports will have to buy permits under the EU’s emissions trading scheme, the court ruled.
The initial cost is expected to rise to an estimated 9 billion euros ($11.8 billion) by the end of 2020, reports Reuters.
Obviously, international airlines are not happy.
Earlier this year, the U.S. House of Representatives passed a bill prohibiting the country’s airlines from participating in the EU program after the industry estimated that participating in the cap-and-trade system would cost U.S. airlines $3.1 billion between 2012 and 2020. All the measure needs in order to become law is the backing of the Senate and President Barack Obama. However, based on the current administration’s various “green” initiatives, this probably won’t happen.
(Related: ECB Lends Banks €489 Billion in First Day of 3-Year Loan Offering)
Critics of the EU’s cap-and-trade law, passed in June 2008, have argued that under the 1997 Kyoto climate pact, countries agreed to address aviation emissions jointly through the United Nations’ aviation body, the International Civil Aviation Organization (ICAO).
However, talks at ICAO have yielded “no significant progress” over the past fourteen years, and the European Court of Justice said the EU was well within its rights to take unilateral action.
The EU already has a cap-and-trade system in place for factories and power plants in the region. Emitters exceeding their quotas must buy carbon permits, while those using under the limit can sell any unused allowances.
While emissions from most other sectors have fallen, airline emissions have doubled since 1990 and could triple by 2020, according to a European Commission report.
Today’s EU court ruling cannot be appealed (convenient), and the case will now return to the U.K. court that referred it, and which will now have to rule in line with today’s decision. However, there is some flexibility in how the regulation may be applied.
The EU law allows for “equivalent measures,” meaning incoming flights to Europe would be exempt from the carbon program should the nation from whence they came have its own measures in place to offset the international emissions.
The European Commission has calculated that costs per passenger could rise by €2 ($2.60) to €12 ($15.60) for airlines participating in the cap-and-trade program.
Hey, at least that’s less than the €100 ($130) per allowance penalty the European Commission will impose on airlines not in compliance with the law.
[Editor’s note: portions of the above originally appeared on Wall St. Cheat Sheet.]
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Comments (134)
Deckle
Posted on December 21, 2011 at 8:49pmSimple solution. Stop flying to EU. There are lots of other places Americans would rather go anyway. Let other airlines fly in there and just have hubs where people can catch those flights!
Report Post »Av8tor056
Posted on December 21, 2011 at 9:08pmAll U.S. carriers should hold a joint press conference and announce an immediate suspension of all European flights.
Report Post »YOUR NOT GETTING MY GUNS
Posted on December 21, 2011 at 9:18pmMaybe the US airports need to be charging landing fees for EU flights after Jan 1.
Report Post »ArgumentumAdAbsurdum
Posted on December 21, 2011 at 9:34pm@Guns
Report Post »Ummmm airports already charge landing fees for ALL flights regardless of their points of departure
Walkabout
Posted on December 21, 2011 at 9:34pmIf the cap & trade costs too much, then direct flights to Europe are over.
It might be more efficient to Fly from somewhere in the U.S. to the East Cost & then to Europe.
So many Americans are going have to get use to more stop overs (1 more) & more total travel time.
Thank you anti-scientific illiterate group think libs.
Report Post »An Arizonan
Posted on December 21, 2011 at 9:45pmAll US carriers should immediately suspend all business with the EU. Why isn’t Obama denouncing this? Oh, that’s right, he‘s still in bed with Al Gore and is probably profiting somehow from the false religion called ’global warming & climate change’. Morons and theifs!
Report Post »RabidPatriot
Posted on December 21, 2011 at 10:06pmI simple solution would be to charge the exact same fee for flights originating from Europe, essentially doubling the fee as a Federal tax. All American citizens that incurred both sets of taxes would then receive a full refund for both in the form of a tax rebate during income taxes. Non-U.S. citizens just get to eat both fees and pay for the U.S. rebates.
Report Post »RABMAN1
Posted on December 21, 2011 at 10:14pmI wonder how this will affect military cargo flights entering Europe from the U.S.? I have a feeling the current administration won’t have a problem spending our tax dollars to pay for this scam. Remember, spread the wealth!
Report Post »Pat_in_NC
Posted on December 21, 2011 at 10:18pmNaw… just pass a law charging EU carriers an amount equal to the cost of the US carriers and give the money back to the US carriers.
Report Post »PheonixDragon
Posted on December 21, 2011 at 11:42pmDo away with airlines totally. Let those going to Europe go by ship. As to that, we could clear our own skies by shutting down all those wasteful fuel burning aircraft, and letting every one in this country go by either bus, or train. Amtrak would love that, as they could add more routes, and serve more people.
Report Post »smackdown33
Posted on December 22, 2011 at 12:04amGun is correct. Charge all European carriers entering the U.S. a Euro-tax on their landing fees. That’s what they did. Charge all European carriers a Euro-tax on refueling.
Start the war, we’ll see who needs who. Close all military bases in Europe, with the possible exception of Turkey.
Report Post »michael48
Posted on December 22, 2011 at 12:21amput the wall back up and give the East Germans the E U…thier answer NINE…NINE…NINE..
Report Post »TexasKnight
Posted on December 22, 2011 at 12:27amImpose a Tax on all flights from europe on non-american owned airlines to make up the difference.
Since europe is defying the free trade pacts, we should too.
This is why elections matter. Obama will not enforce any of these.
These cost will just be added onto tickets.
This needs to come up in the next debate.
On a sarcastic note, we need to go back to green transportation to/from europe. Planes use too much gas. So do ships burning coal or heaven forbid nuclear. The only form of transportation that should be allowed is wind. Bring back the sailboats and the three month crossings of the atlantic!
Report Post »foobear
Posted on December 22, 2011 at 3:19amI’m sure that suspending all flights to the EU would be much less expensive for the airlines than paying a $2-$10 per passenger carbon tax.
Oh, wait, no it wouldn’t.
Report Post »TomFerrari
Posted on December 22, 2011 at 4:46amFind the closest airport outside the EU where we can land.
Land there. Put everyone on a big red double-decker bus that won’t run on highways, and send em on to the EU. LOL
Seriously, though, land nearby, refuel with all the fuel you will need to make a quick round trip hop to your destination in the EU, then, take the passengers to their destination, board new passengers, make the return hop (without buying fuel) to the EU-free country, refuel for the trans-Atlantic leg, then, off you go back to America (soon to be Free again!)
RESTORING LOVE – July 26 27 28 Dallas, TX
Report Post »Do you GBTV?
http://www.Meetup.com/MercuryOneHQ
Give Me Newt Or Give Me Death
Posted on December 22, 2011 at 4:58amThat would be the easy way out.
Report Post »jcknccmret
Posted on December 22, 2011 at 6:56amI agree, They loose our tourism money they will start crying like the Baby Sissy Liberals that they are
Report Post »TAXLORDCOMETH
Posted on December 22, 2011 at 9:47amTake the EU Climate Commissioner to court and make her prove in a court of law that this cap and trade money-grab cesspool of corruption is actually going to reduce the temperature on this planet. That would be like a Scopes trial
Report Post »turkey13
Posted on December 22, 2011 at 9:59amThis is simple – charge EU flights when they land the amount required to pay the EU. No money will have to change hands. This will only tick off Al Gore since he set this up and will not get his percentage.
Report Post »From Virginia
Posted on December 21, 2011 at 8:41pmJust a few days ago the British PM vetoed a measure that would allow the EU to tax banking transactions in the EU which would have hit the UK especially hard. Sooooooo, since they EU can’t steal English money they are going after the US. Won’t wash here, either, you losers. Your precious EU is done!
Report Post »Give Me Newt Or Give Me Death
Posted on December 22, 2011 at 4:59amI don’t know, they seem to have a fairly complicit US administration helping them.
Report Post »From Virginia
Posted on December 21, 2011 at 8:37pmWow! They just killed their tourism from the western hemisphere. Nice job, dillweeds!
Report Post »ArgumentumAdAbsurdum
Posted on December 21, 2011 at 8:54pmLOL! Thats hilarious considering a good portion of Europe is in the western hemisphere.
Report Post »Walkabout
Posted on December 21, 2011 at 10:15pmArgumentumAdAbsurdum
Considering that the Prime Meridian runs thru Greenwich, England, the original posters point is correct. The poster meant Tourism from the U.S., Canada & elsewhere in the Americas. Also considering how much people try to save money, $ 15 dollars might not look like much but it is. When people are looking at cut rate airfares that make several stops thru Canada & Great Britain, $15 after tax is quite a bit. Suppose you wanted to take a family of 4. That is $60 after tax. There are also so many other new taxes & fees too. I’ve made the trip 3 times & I am better off than most. The Europeans are pis sing their money away.
Report Post »From Virginia
Posted on December 21, 2011 at 10:27pm@Argument – Ugh! No it’s not! We are the western hemisphere (Along with Canada and everything south of our border). What YOU are refering to is the west? As a terminology referencing western civilization? Good grief! Our education has REALLY slipped up!
Report Post »asybot12
Posted on December 22, 2011 at 1:09amnope as some else said, argue pretty much everything west of Greenwich is in the Western Hemisphere but seeing you are a little east slanted we will forgive you
Report Post »Give Me Newt Or Give Me Death
Posted on December 22, 2011 at 4:59amI love how they seem to think that these things don’t matter and that everyone will gladly pay.
Report Post »mrfunn
Posted on December 22, 2011 at 6:30pm.
I’m going to miss their champagne.
Happy New Year
Report Post »ArgumentumAdAbsurdum
Posted on December 24, 2011 at 9:13pmOkay lets see if you slow people can grasp this. Parts of England, Scotland, France, and Holland, almost the entirety of Spain, all of Portugal, Ireland,Northern Ireland and Wales are in the Western hemisphere. And last I checked all those countries are in Europe.
Report Post »sgtstubbs
Posted on December 21, 2011 at 8:31pmThe family was in France twice, WWI and WW II and we saw enough for a lifetime.
Report Post »Give Me Newt Or Give Me Death
Posted on December 22, 2011 at 5:00amI was there once. never going back.
Report Post »Rayblue
Posted on December 21, 2011 at 8:29pmThe lass harasses the passengers for the graspable cash
Report Post »to repair the gas gash in the atmosphere.
It’s a vast fast dash to mash a euro crash.
Alas……
madasblazes
Posted on December 21, 2011 at 10:34pmThink Communist Manifesto…Socialize the Transportation Industry.
Just google “or Bing, “Airlines for America”.
It used to be Air Transportation Association. It’s new!
Check it out…carbon tax goes right along with the whole Communist/Marxist/Socialist agenda.
Report Post »Coming to your local airport….
Give Me Newt Or Give Me Death
Posted on December 22, 2011 at 5:00amUmmm..yeah.
Report Post »ULYSSESG
Posted on December 21, 2011 at 8:24pmWe shall see how this WEAK AZZ BUNCH IN D.C. REACT. PIZZ OFF EUROPE. WE LEFT THAT PILE OF CRAP FOR THIS EXACT REASON. ONLY GOOD SOLCIALIST IS A DEAD ONE.
Report Post »singleparent
Posted on December 21, 2011 at 8:30pmI agree so when do we start in this country…. it is time to take this country back….
Report Post »sWampy
Posted on December 21, 2011 at 8:23pmThis is a win, win, every single American that doesn’t go to europe and spend our resources there is a win for the US. When they spend them money here, it’s a win x7 as it turns over in our economy. Sure we will lose out on some of their money here, but we can survive with out it.
Report Post »ArgumentumAdAbsurdum
Posted on December 21, 2011 at 9:08pmlisten. considering that only about 3 million americans travel overseas, even in the unlikely event that all of them stopped travelling it wouldnt hurt the EU too much.
Report Post »hypnos
Posted on December 21, 2011 at 10:08pmThe typical socialist way is to impose regulations and rules that are negative,instead of offering tax incentives for clean fuel efficient aircraft. How about the Dreamliner an American product.
Report Post »Av8tor056
Posted on December 21, 2011 at 10:56pmArgumentumAdAbsurdum
listen. considering that only about 3 million americans travel overseas, even in the unlikely event that all of them stopped travelling it wouldnt hurt the EU too much.
___________________________________________________________________________________
Think of it this way. If all U.S. carriers did stop serving Europe, there would be no need to maintain ticket counters and those employees in Europe, no ramp fees paid, no fuel purchased, etc. That’s a big loss to each airport.
Report Post »RightThinking1
Posted on December 21, 2011 at 11:07pm@AV8
Report Post »Uh, what makes you think that it won’t simply expand the market for EU carriers, i.e., they will simply expand their fleets and take over routes now served by US carriers?
asybot12
Posted on December 22, 2011 at 1:05am@argu 3 million @ $1000 average /visit ( and that is on the cheap) 3 billion $$ not a hit/ ask that from the people that run restaurants etc. Other spinoffs are even harder to estimate.
Report Post »Av8tor056
Posted on December 22, 2011 at 7:42amRightThinking1
@AV8
Uh, what makes you think that it won’t simply expand the market for EU carriers, i.e., they will simply expand their fleets and take over routes now served by US carriers?
__________________________________________________________________________________
They might. But the European airlines are hurting pretty badly, just like our air carriers. They probably won’t be able to get a lot of funding to purchase jets that can make a trans-Atlantic run. Then in the U.S. they would have to lease more concourse space, buy fuel,etc.
Report Post »So, even if the Europeans take over the routes it’ll still help us buy getting them to pay for items here. But honestly, I don’t think that they really have the infrastructure to take on such a big project
Alvin691
Posted on December 21, 2011 at 8:22pmThere we have it, ladies and gentlemen, your global tax.
Report Post »Al J Zira
Posted on December 21, 2011 at 8:16pmThis could be a blessing for AA. They just filed for bankruptcy restructuring and this would give them cause to scale down European operations and save money flying to the socialist countries. Scale down everything from planes to staff and save fuel. Thanks Europe, you idiots just helped save the industry you were trying to kill.
Report Post »Publius Novus
Posted on December 21, 2011 at 8:14pmI would tell them that there are more emissions from their women folk not shaving their arm pits than from jet fuels! Yes, I’m speaking to you France. Without the US you’re union is meaningless and the Russians would overtake the whole continent in less than a week less the UK.
Report Post »ArgumentumAdAbsurdum
Posted on December 21, 2011 at 9:15pmas spoken by a person who has probably never left the country. your ignorance on european culture isnt surprising but is no less sad.
Report Post »Publius Novus
Posted on December 22, 2011 at 7:51amOn the contrary, I was there many time & speak for experience. You must be a Frog….merci for your comment.
Report Post »tzion
Posted on December 21, 2011 at 8:10pmI get it. When you can’t raise the money by taxing those you represent, you start taxing foreign businesses which has the double effect of raising revenue without directly hurting your economy (though it will hurt them indirectly). Isn’t this the kind of extortion that inspired the Revolution. All this will do is decrease the number of international flights to Europe.
On an unrelated note, has it occurred to anyone that this ruling, if upheld, could potentially lead to airlines getting fined twice per each international flight. Imagine if the US, G-d forbid, passed its own cap-and-trade system. Then they would have to pay fines to two governments for the same flight.
Report Post »ArgumentumAdAbsurdum
Posted on December 21, 2011 at 9:18pmor they could take the sensible and cost saving measure of meeting international emissions standards. OH MY GOD! What an amazing concept!
Report Post »daveleeander
Posted on December 21, 2011 at 9:31pmargumentidiot,
The problem is the regulations will never quit going down. Cap and trade is part of the issue 21 plan. I sometimes enjoy reading trolls posts like yours, but I enjoy the intellectual troll better. You are an example of the “dumbing down” of the populace for control. You should be alarmed, you fell for it.
Report Post »ArgumentumAdAbsurdum
Posted on December 21, 2011 at 9:52pm@dave
Report Post »I’m assuming you mean Agenda 21 rather than “issue” 21, regardless of what you meant you lose all credibility as a rational and effective debate opponent when you adhere to non-sensical conspiracy theories that focus on non-binding and virtually meaningless UN propositions
asybot12
Posted on December 22, 2011 at 1:07amHey argue I thought Boeing had the most efficient engines and planes (I know the engines are made in the EU or at least some of them)
Report Post »texanpatriot
Posted on December 21, 2011 at 8:08pmWait until November and tell the EU to go sit on a sharp stick. Yes, I am tired of the European Socialists telling this great Country what to do. Remember WW II? Pull our troops and let them have face to face with Putin!!!
Report Post »Jwmajic
Posted on December 21, 2011 at 8:08pmBoycott Europe. Or fly to Africa and take a ship the rest of the way.
Report Post »Jwmajic
Posted on December 21, 2011 at 8:09pmThis has nothing to do with the environment its all about collecting more taxes.
Report Post »eramthgin
Posted on December 21, 2011 at 8:06pmIn some ways it is a shame that they don’t all have to speak German or Russian.
Report Post »SmarterThanTheAverageBear
Posted on December 21, 2011 at 8:05pmIt looks like I won’t be flying to Europe either; however I‘m not sure how long this scam tax will last as there is a good chance that there won’t be an EU in a few months, just a bunch of bankrupt liberal countries starving for cash.
Report Post »eramthgin
Posted on December 21, 2011 at 8:04pmThe hell with Europe……wouldn’t go there anyway. Three times we saved them from enslavement and this is how they repay us with junk science and arrogance.
Report Post »ArgumentumAdAbsurdum
Posted on December 21, 2011 at 9:26pmArrogance and ignorance, quite the combination. You’re parents must be proud.
Report Post »daveleeander
Posted on December 21, 2011 at 9:32pmArgumentidiot,
Report Post »I‘m sure yours aren’t.
Walkabout
Posted on December 21, 2011 at 10:17pmArgumentumAdAbsurdum
Anyone who is fond of Noam Chumpsky has got to be a lefty loony tune. I bet few people are fond of you.
Report Post »teacherskj
Posted on December 21, 2011 at 10:24pmTrue. What does Europe have that America doesn’t anyway. Why would anyone need to go there for
Report Post »any other reason other than business? Godless warlike idiots who have enjoyed 7 decades of relative peace and prosperity because of our blood and treasure. Reduce our military there and save your vacation dollars for our homeland.
Rickfromillinois
Posted on December 21, 2011 at 8:04pmReciprocate x 2. Charge them twice as much to come here. Screw the EU.
Report Post »wellhangingchad
Posted on December 21, 2011 at 7:58pmAnd Soros just made millions, again! We need to kick the EU out of the US and not follow “international law”, but the constitution!
Report Post »momsense
Posted on December 21, 2011 at 7:57pmKeep your tourist dollars at home–see how they like it, and don’t be afraid to use it.
Report Post »CatB
Posted on December 21, 2011 at 8:07pmI agree .. btw Florida is in 60‘s at night 80’s during the day beaches are lovely … You like to ski ?.. we have top ski resorts in the U.S. …. want to eat from some of the worlds best restaurants? .. try Vegas or Orlando or any major city … from sun and fun to snow and fun .. America has almost anything anyone could want .. without too many snooty Europeans ..
Report Post »Laus Deo
Posted on December 21, 2011 at 7:57pmGoodbye, Europe. I’ve seen you twice before but (likely) never more. Gimme a call when you’ve pulled your head out of your azz.
Report Post »Theleftisda
Posted on December 21, 2011 at 7:56pmRemove are bases from the E.U. no more flights and we will no longer feed you low life fleas,hope you all can eat carbon credits
Report Post »Drakkhanlord
Posted on December 21, 2011 at 7:56pmcarbon tax is a scam
Report Post »momsense
Posted on December 21, 2011 at 7:56pmRead and learn–this is what will happen if the UN runs this country. You’ll have a choice between freezing, starving or boiling to death. Get the picture? US out of the UN; UN out of the US
Report Post »singleparent
Posted on December 21, 2011 at 7:52pmSo quit fly’ing to there or from there…..screw’em
Report Post »lukerw
Posted on December 21, 2011 at 7:54pmAgreed!
Report Post »Baddoggy
Posted on December 21, 2011 at 7:58pmIf i owned an Airline, I would charge 10 times the rate for one of their citizens to board my aircraft. Ooopy, your government is stupid and now you pay…
Report Post »CatB
Posted on December 21, 2011 at 8:00pmThat’s what I would do .. I have boycotted the domestic air .. no TSA for me .. let them fend for themselves. America should use this to our advantage .. like their high costs on manufacturing in Europe .. undercut them and put them out of business in America.
Report Post »oldironsides
Posted on December 21, 2011 at 8:14pmpretty simple – lets see how their failing economies do after a 6 month boycott – and the airlines better not get a taxpayer bailout to cover the new costs – you couldn’t get me to europe unless we declare war on them
Report Post »MeteoricLimbo
Posted on December 21, 2011 at 7:51pmJust imagine the bill for Eyjafjallajokull’s relatively small eruption in 2010 halted air traffic across Europe!
Report Post »