Proposed House bill would 'prohibit' US airlines from participating in EU ETS

A bipartisan contingent of US House of Representatives' members proposed legislation Wednesday that would "prohibit operators of civil aircraft of the United States from participating in the European Union's Emissions Trading Scheme."
The move was yet another shot fired at the EU from a non-EU government, many of which strongly oppose their airlines' inclusion in the ETS starting next year (ATW Daily News, July 6). Both the Republican chairman of the House Transportation and Infrastructure Committee, John Mica (R-Fla.), and the panel's top Democrat, Nick Rahall (D-W.Va.), endorsed the proposed bill.

If enacted into law before airlines' inclusion in the ETS kicks in, the legislation would create a legal battle of wills: US airlines would be required by EU regulation to participate in the ETS in order to fly to/from EU airports, but would be barred by US law from participating in the scheme. 

Mica said that the "unjust" ETS is "a clear violation of international law that puts US air carriers at a competitive disadvantage, kills US aviation jobs and may lead to a trade war. This bipartisan measure sends a clear message to the EU that the United States will not participate in this ill-advised and illegal EU program."

Rahall added, "This trading scheme looks more like a shell game to shuffle the money around because no one can say with certainty that the money will be used for its intended purpose. By introducing this bill, we are not flatly rejecting the notion of a system for controlling carbon dioxide emissions. Rather, just as the Obama administration has done, we are rejecting the go-it-alone approach taken by the EU that directly infringes on the sovereignty of the United States."

The bill directs the US transportation secretary "to prohibit US aircraft operators from participating" in the ETS and "instructs US officials to negotiate or take any action necessary to ensure US aviation operators are not penalized" by the scheme, according to the T&I Committee.

The US Air Transport Assn. said it "commended House leaders for proposing a bill that declares the application of the European Union Emissions Trading Scheme to aviation inconsistent with international law." President and CEO Nicholas Calio stated, "Subjecting airlines to the EU unilateral system will be counterproductive to the environment and will result in the loss of US jobs as it siphons money away from carriers, impeding their ability to invest in new and more efficient technology."

IATA stated that it welcomed the House proposal, which it said "recognizes that the International Civil Aviation Organization is the proper forum to address international aviation carbon emissions. Aviation is a global business that requires global solutions, including on climate change. IATA supports economic measures, including market based measures, to reduce CO2 emissions as part of the aviation industry's strategy to address climate change."