U.S. airlines will have to participate in an emissions trading scheme or face a curb on flights to the European Union, Jacques Barrot, the E.U. transport commissioner said, according to the Guardian.
The E.U. seeks to protect its domestic carriers against foreign competition that could offer lower fares, if they are not required to buy carbon credits for their greenhouse gas emissions.
Earlier this week, E.U. leaders raised the possibility of trade tariffs against U.S. and Chinese heavy industries, also aimed at protecting domestic businesses, which could suffer competitively under the E.U.’s aggressive policy to reduce emissions by 20% below 1990 levels by 2020.
In an expansion of the E.U. emissions trading scheme, beginning in 2012, all airlines flying in and out of the E.U. will be required to reduce carbon emissions or buy credits, which will raise the price of tickets. However the International Air Transport Association has warned that 170 countries oppose the move.
According to the Guardian, the U.S. is refusing to let airlines join the carbon trading scheme, a move that will be a point of high contention as "open skies" negotiations continue.
Under the current open skies treaty, limits on flights between the E.U. and US will be lifted later this month for the first time in 30 years.
In an upcoming round of negotiations for a new treaty, Barrot said he also will demand that the U.S. government lift restrictions on foreign ownership of airlines and accept E.U. security procedures.
Under the open skies terms, E.U. states can suspend flights from the U.S. to Europe if insufficient progress is made on a second phase of negotiations by 2010. The suspensions can take place from 2012.
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