The European Union’s effort to force U.S. airlines, such as Delta Air Lines Inc. (DAL) and AMR Corp. (AMR), into a cap-and-trade program on greenhouse gases is inconsistent with global accords, two Obama administration officials said.
The U.S. filed an objection with the EU, saying the plan that is set to take effect next year violates U.S. policy and international aviation laws, representatives from the State and Transportation departments said today at a hearing of the House Transportation and Infrastructure Committee.
“Unilaterally including our carriers in an emissions trading system is the wrong way to achieve the right objective,” Krishna Urs, the State Department’s deputy assistant for transportation affairs, said at the hearing. “The right way is to work with our international partners to develop a multilateral solution.”
U.S. lawmakers are also fighting the EU plans, introducing legislation last week that would bar U.S. carriers from participating in the carbon plan. The program, aimed at emissions such as carbon dioxide that are linked to climate change, would cost U.S. carriers $1.3 billion in its first year and may top $3.5 billion, said Representative John Mica, chairman of the committee.
Starting next year, international airlines will have to account for emissions on flights to and from EU airports, and offset that amount with carbon permits from the bloc’s exchange. The EU will give airlines free allowances in 2012 for 82 percent of their historic emissions, with 15 percent auctioned and the remaining 3 percent held in a special reserve.
Options considered
Susan Kurland, the Transportation Department’s assistant secretary for aviation and international affairs, said the U.S. is examining “a wide range of options” if the EU goes through with its proposal, responding to suggestions for tariffs to offset payments to the EU.
“We strongly believe that a collaborative international approach is the best way to reduce global greenhouse-gas emissions and will continue to work actively for a global solution,” Kurland said.
The House bill would direct the Transportation secretary to prohibit carriers from participating in the EU’s Emissions Trading Scheme. U.S. officials would have to negotiate or take action to make sure carriers aren’t penalized by the EU plan, according to the legislation.
