EU's Carbon Tax

[BC Tam 2]

8 March 2012 Last updated at 11:16 GMT

China blocks Airbus deals over EU carbon tax, says EADS

 

China has blocked purchases of Airbus planes by Chinese firms in reaction to a disputed European carbon tax, the head of Airbus's parent company, EADS, has said.

EADS chief executive Louis Gallois says Airbus is being subjected to "retaliation measures" by China.

The EU imposed a carbon tax on airlines which took effect on 1 January.

China has not commented, and it is not clear whether it is official policy or a negotiating ploy, analysts say.

"The Chinese government refuses to approve airlines' orders for long-range aeroplanes," Mr Gallois told a press conference as he presented the company's annual results.

This appears to be the heaviest weapon yet deployed in the battle between the EU and its opponents over charging airlines for their global warming emissions, says BBC environment correspondent Richard Black.

He says it is somewhat surprising in that tensions appeared to be decreasing a couple of weeks ago, when countries including China decided not to throw the legal book at the EU, but pursue a negotiated outcome.

No air carrier will face a bill until 2013 after this year's carbon emissions have been tallied, reports say.

 

http://www.bbc.co.uk/news/world-europe-17298117

 

Looks like Taiko flexing muscles to me

Wonder when will the EU bigwigs come to realization they stand to lose more than gain with this (imo only) - particularly acute when intending travellers are already having second thoughts with disposable income becoming tighter by the day

[flee 5]

One of the reasons why I decided not to travel to the EU this year. The scheme is unfair for two reasons (in my book):

 

1 It applies to all airlines' routes, even if they originate outside the EU. As such, the longer the route, the higher the tax. It is not fair because an airline which makes an intermediate stop just outside the EU will pay less carbon tax as the second flight is shorter. However, because it has made two take offs and landings, it is actually causing more pollution and carbon emissions compared to a non stop flight.

 

2 The taxes go directly to the states. They may or many not be used for the environment. So why create such a complex system if it is only a tax? Surely it would be more efficient to collect it using existing channels and not create this monster trading scheme.

 

China has a good reason for its actions. We should not allow the EU to make such taxes enforceable on flights outside the EU.

[BC Tam 2]

..... an airline which makes an intermediate stop just outside the EU will pay less carbon tax as the second flight is shorter

Perhaps the legal hawks can work out whether some 'touch and go' procedure at some not so busy airport outside the EU could possibly qualify as 'an intermediate stop' Then the bean counters can work out the costings - and if viable, we'll have some quite interesting routings in time to come

[JuliusWong 0]

China Halts 10 More Airbus Orders - Sources

 

March 15, 2012- China has suspended the purchase of 10 more Airbus jets, two people familiar with the matter said on Thursday, raising the stakes in a potentially damaging trade row over European Union airline emissions charges.

 

The move to delay the purchase of extra A330 planes brings to USD$14 billion the value of European aircraft caught up in tensions over the EU's Emissions Trading Scheme, which has angered countries including China, India and the United States.

 

It comes amid urgent efforts to find a solution to the row, which airlines fear could provoke an aviation trade war capable of causing travel disruption and hitting air traffic rights.

 

Earlier this week, Airbus said China had blocked the purchase of 35 long-haul A330s and 10 Airbus A380 superjumbos worth a total of USD$12 billion.

Airbus did not name the airlines involved, but industry sources said the A380s were earmarked for Hong Kong Airlines, 46-percent owned by HNA Group, the parent of Hainan Airlines.

 

The row is over a cap-and-trade scheme which could levy charges for carbon emissions for flights in and out of Europe.

 

Foreign governments say the EU is exceeding its legal jurisdiction by charging for an entire flight, as opposed to just the part covering European airspace.

The European Commission argues the scheme is needed to cut rising emissions and help the world fight climate change.

 

Aviation industry sources said on Thursday that despite the latest pressure on aircraft sales, hopes were tentatively emerging of a possible formula that would give the UN's aviation body, ICAO, time to negotiate an alternative global deal.

 

They said one possible scenario called for the EU to suspend the application of its scheme to foreign airspace and get nations talking, something the EU is so far unwilling to do because of fears that the momentum for action would be lost.

 

There are few signs that negotiating an ICAO deal would be easy, however. The question of what role developing countries should play in curbing emissions threatened to derail a top-level meeting of the Montreal-based body this week, according to one official who attended Wednesday's meeting.

 

'LONG-TERM DAMAGE'

China has so far directed its threatened retaliation at wide-body aircraft capable of reaching Europe from China, not A320 short-haul jets assembled in China for the local market.

 

In all, 55 aircraft have been swept up in the dispute, equivalent to about 10 percent of the aircraft ever delivered to China by Airbus, which claims 47 percent of the Chinese market.

 

While the A380 purchase is a firm order, meaning it cannot be cancelled without losing a deposit, the threatened A330 deals are still in the pipeline -- either being negotiated or waiting for the required official approval from the Chinese government.

 

"Aircraft sales are different from selling wine or cars, you can't switch the sales button from off to on from one day to another. A red traffic light in aircraft sales can destroy years of sales efforts and damage-repair will take years," said Rainer Ohler, head of Airbus public affairs and communications.

 

Those stakes were highlighted on Wednesday when rival Boeing hinted at billions of dollars of fresh sales for its 777 long-haul mini-jumbo, which has been selling well in China.

 

"I think you're going to see both sales of narrow-bodies and wide-bodies (in China) continue to grow," James Albaugh, chief executive of Boeing's commercial division, told a conference.

 

"We sold 30 777's over there last week and had a lot of discussions with other customers about more." A Boeing spokesman said these included 10 jets already announced. Boeing is in "advanced discussions" for the other 20. (Reuters)

Edited March 16, 2012 by JuliusWong

[Mike P 0]

Fighting world climate by discouraging the travels is utterly absurd! There're a lot other ways!

[S V Choong 4]

It is a matter of time before Australia would impose such tax. We are now being slapped with Julia Gillard's upcoming tax, which the Labor government said as an employee we won't need to pay, only companies will have to. Either way, we are indirectly being asked to suck it up as "time has changed".

 

Worst is that you don't really know where they are spending these money to and it will go to the Federal government and then State level. Ideally they are investing these monies for renewable energy's research. However the catch it... will they really be used in that purpose? Sources has been saying in times of bad economy, the EU is using as a mean to draw more income to rescue themselves rather than investing in renewable energy.

 

China is close to firm up 20x B777 pax and 10x B777 Freighters in protest against EU. I guess those who have the bling bling calls the shots!

[Mike P 0]

India boycotts EU aviation carbon charge

 

Indian airlines are not going to pay the EU carbon charge, civil aviation minister Ajit Singh insists

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Indian airlines will not comply with the European Union's (EU) carbon charging scheme, according to civil aviation minister Ajit Singh.

The EU has directed Indian carriers to submit the emissions details of their aircraft by 31 March.

But Mr Singh told parliament that "no Indian carrier is submitting them in view of the position of the government".

Last month, China said its airlines would not pay the EU charge.

Many other countries, including Russia and the US, have also objected to the scheme, under which airlines that exceed tight emission limits must buy carbon credits.

They see this as a tax on CO2 emissions from aircraft flying to or from destinations outside Europe and say it fails to comply with international law.

Brussels has insisted the carbon charge is essential if it is to meet its obligation to reduce emissions by 20% by 2020.

In December 2011, the European Court of Justice ruled that the EU charge was legal.

The charge, which the EU says could make long-haul flights up to 12 euros ($16; £10) more expensive, was introduced in January, though airlines will not have to start paying it until next year.

http://www.bbc.co.uk/news/business-17485738