The Association of Asia Pacific Airlines says the European Union (EU) has "over-reached its authority and must now fundamentally rethink" its plans to implement an Emissions Trading Scheme (ETS).

Several US carriers have brought a legal case against the EU in the European Court of Justice, with the initial findings expected in October 2011 and a full judgement next year. The US Congress's House Transportation Committee has proposed a draft legislation to prohibit the country's airlines from participating, saying that the EU has not responded satisfactorily to objections raised by the US, said the AAPA.

Several foreign governments, including China and India, have asked for their airlines to be exempt from the plan. Some have also threatened retaliatory trade measures if the scheme goes ahead in its current form.

"Foreign governments have long held the view that the inclusion of foreign airlines in the EU ETS, without the consent of foreign governments, breaches international treaty obligations and bilateral agreements governing international aviation," said the AAPA's director-general Andrew Herdman in a statement.

"More than 140 non-EU governments stated their unequivocal opposition to the unilateral imposition of the EU ETS at the two most recent triennial Assembly meetings of the United Nations International Civil Aviation Organisation (ICAO) in 2007 and 2010."

While the EU could consider partial exemptions if other governments introduce "equivalent measures" that it considers acceptable, there is still no indication on how this would be gauged.

"This would only bring added complexity to the scheme without being environmentally effective. In any case, the whole notion of partial exemptions is practically unworkable, given such exemptions would only exclude inbound flights to the EU from the relevant countries, but would have to be applied equally to all carriers operating on such routes," said Herdman.

The EU's "intransigence" has resulted in a political backlash that could lead to the issue being blown up even more, he pointed out. Herdman reiterated that ICAO remains the "appropriate UN forum" to help create an effective multilateral agreement.

"The EU needs to face up to the fact that it has over-reached its authority, and must now fundamentally rethink its position. Given the need for international consensus, combative legal challenges and threats of a tit-for-tat trade war are not the right way to resolve these matters. The EU needs to urgently re-engage with the international community to find constructive solutions and avoid further escalation of the dispute," he added.

Source: Air Transport Intelligence news