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India asks countries to oppose EU airline emissions tax

New Delhi,Business/Economy, Mon, 08 Oct 2012 IANS

New Delhi, Oct 8 (IANS) India Monday asked the avaiation community in the Asia=Pacific region to oppose the European Union's emissions trading scheme (EU-ETS) taxes on foreign airlines flying over Europe.

The EU-ETS, implemented in January 2012, warrants that all airlines, regardless of nationality, would be taxed if they overshoot their emission limits while operating over Europe.

There are also stiff penalties (which potentially include being banned from operating in the EU region) should they fail to comply.

"The call for suppressing aviation growth to reduce its environmental impact is not acceptable to us as a solution. We need to facilitate growth of aviation along with finding innovative solutions to addressing environmental concerns," Civil Aviation Minister Ajit Singh told the 49th conference here of the Directors General of Civil Aviation (DGCA), Asia-Pacific.

"We would request the delegates to oppose any unilateral environment measures imposed by a state or group of states like the EU-ETS and work with ICAO (International Civil Aviation Organisation) to evolve global environment protection on basis of equity and consensus," he said.

Earlier, the Indian government had directed all India-based airlines operating to Europe not to comply with the EU-ETS.

This year, India and 25 other countries adopted a working paper which urged EU not to include non-EU airlines in its emissions trading system at the ICAO.

The air transport industry has made global commitments to improve fuel efficiency by 1.5 percent per annum by 2020 and to cap net emissions from 2020 and to cut net emissions in half by 2050 from 2005 levels.


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