Pressure mounts on EU over "illegal" emissions tax

The ETS scheme is due to become operational on January 1 2012.

But late last week two US Congressmen, one a Democrat and the other a Republican, are calling for a US law change that will make participation by US carriers in scheme illegal.

Their proposed bill is called "The European Union emissions trading scheme prohibition Act of 2011" and the move has been welcomed by NBAA – the American business aviation equivalent of MEBAA.

Within Europe itself German Member of European Parliament Holger Krahmer is calling for a moratorium on the inclusion of aviation in the European Union's emissions trading scheme (ETS), and has warned that it could lead to Europe becoming the victim of an international "trade war".

Nancy Young, vice-president of environmental affairs at the Air Transport Association of America (ATA) - which began its legal challenge against ETS at the European Court of Justice on 5 July 2011 - said that "a trade war scenario is very real".

She added that if the ATA's lawsuit is unsuccessful, a similar case will likely be brought against the EU by a foreign government.  Both the US and Chinese governments have raised objections to the inclusion of their airlines in the ETS.

The argument is that the ETS imposition is inconsistent with long-established international law and practice, including the Chicago Convention of 1944 .

The US is claiming that it also contravenes “the Air Transport Agreement between the United States and the European Union and its member states, and directly infringes on the sovereignty of the United States."

Head on MBAA Ed Bolen said:  "While the industry will continue working to minimize its carbon footprint, we welcome this strong signal from government leaders that emissions policies, like all aviation policies, should be set by the International Civil Aviation Organisation."

In Asia Pacific things are also coming to a head. The Association of Asia Pacific Airlines director general, Andrew Herdman, believes that foreign governments will become increasingly upset "because Europe will be invoicing airlines and the money will be flowing into Europe"

Airbus and the Association of European Airlines (AEA) have also raised objections to the EU climate change commissioner Connie Hedegaard. "Some of the world's most powerful economic and political players feel EU ETS imposes on their sovereignty. They are threatening retaliation and we fear that European aviation will be caught in the political crossfire," the AEA said in its letter to the EU.