US House passes bill shielding airlines from EU jet emissions tax

28 June 2012 21:26  [Source: ICIS news]

HOUSTON (ICIS)--The US House of Representatives passed a bill that would prevent US airlines from paying taxes levied by the EU Emissions Trading Scheme (ETS), a move commended on Thursday by a trade group.

The EU ETS would tax emissions of airlines flying to, from or within the EU covering the duration of the flight, including portions flown over international waters.

Airlines for America (A4A) commended the US House for approving an amendment to prevent the US Department of Transportation and the Federal Aviation Administration from using funds to impose the emission taxes on US carriers.

“We appreciate the House recognising that this unilateral approach is wrong and will do nothing to improve the environment; we urge the Senate to take similar action, and we also encourage the administration to file a legal challenge, forcing the EU to work toward a global sectoral approach through the International Civil Aviation Organization,” said A4A President and CEO Nicholas Calio.

Complying with the EU ETS would require billions of dollars invested in fuel-saving aircraft and engines, innovative technologies and advanced avionics, the A4A said.

Calio said commercial aviation accounts for just 2% of all greenhouse gas emissions while driving more than 5% of the nation’s GDP. 

Fuel efficiency in the US airline industry has improved by 120% from 1978, said the A4A.

The EU ETS was started in 2005.

By: Sheena Martin
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