Europe's highest court gave unreserved backing on Wednesday to an EU law to charge airlines for carbon emissions on flights to and from Europe, a decision likely to escalate tension with trading partners, especially the United States.
Under the law, all airlines flying to, from and within the European Union will have to buy permits under the EU's emissions trading scheme from January 1.
The initial cost is expected to be minimal but would rise to an estimated EUR€9 billion (USD$11.8 billion) by the end of 2020.
"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.
Wednesday's ruling was in line with expectations after a senior adviser to the court issued a preliminary opinion in October that found the EU legislation did not infringe other states' sovereignty and was compatible with international accords.
EU Climate Commissioner Connie Hedegaard, for whom the carbon trading scheme is one of the main weapons to combat climate change, was among the first to welcome the decision.
"After a crystal-clear ruling today, the EU now expects US airlines to respect EU law as the EU respects US 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.
Airline associations were also swift to react.
US airline industry body "Airlines for America" said it was reviewing its legal options, but meanwhile would "comply under protest".
"The US government and dozens of others around the world are increasing pressure on the EU to come back to the table to consider a global sectoral approach," it said in a statement.
Credit: Reuters
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