American air carriers are lobbying the European Union not to threaten fines for breaking its carbon emissions regulations as preparations for enforcement are set to begin this month, according to Shipping Gazette.
The EU is scheduled to start having enforcement mechanisms in place covering 2012 emissions, with the registration of emissions as a first step.
The next deadline for air carriers is the end of March, when they should report data for 2013 emissions, Reuters reports. Non-compliance could lead to fines of millions of euros.
Thomson Reuters Point Carbon analyst Emil Dimantchev said fines could amount to EUR39 million (US$54 million) and the necessity to by credits in the EU's carbon trading taxation scheme.
"We continue to push for a clear statement of relief from the application of the pending deadlines," declared the US airline association A4A.
A4A said such a statement would avoid invoking the US blocking law, under which American carriers can shelter from compliance with the EU rules.
The governing European Commission said most airlines, covering 98 per cent of emissions, have complied and it relies on member states to punish those that do not. The EU can take member states to court if they fail to enforce the law.
There is a EUR100 per non-registered tonne fine, plus the obligation to buy carbon credits to cover the non-registered amount.
The UK has agreed to go ahead with enforcement, but it wants EU-wide application first. Britain also said the deadline should be 2020, by which time the UN's International Civil Aviation Organisation (ICAO) is to have a global plan in place.
But an EU official said there was "a broad consensus among member states and the European Commission that the law needs to be implemented" after a closed-door meeting.
The US and China said the EU law was a breach of sovereignty and threatened retaliation, with China having already blocked Airbus orders.
In response to the opposition, the European Union did not apply its law against intercontinental flights using EU airports, but the did so against flights within the EU.
Some European carriers say they are at a disadvantage if long-haul flights do not pay, and thus support enforcement.
How long the intercontinental flight exemption will last remains a talking point in EU member states and institutions, which must agree on a new law by May or the original legislation will reapply.
-
Company DirectoryFreight RateExport RateAgency PartnershipCargo Leads