Mark Szakonyi, Associate Editor | Aug 02, 2012 2:46PM EDT
U.S. pressure to reject the European Union's carbon tax on international airlines is mounting, with committees in both chambers of Congress approving bills blocking participation in the program.
The Senate's rejection of the plan came on Tuesday as representatives from 16 opponents of the carbon tax, including China, Brazil and Russia, met in Washington to create an alternative to the program, according to reports. The countries, however, failed to agree on a joint declaration during the United Nations' International Civil Aviation Organization meeting, according to Reuters.
The countries still have time to pitch an alternative to the EU plan. Although the rule kicked in on Jan. 1, airlines won’t have to buy permits for carbon produced during entire flights, including over non-EU airspace, that land or take off from airports in the 27-nation block until 2013.
“Congress must act to protect America’s sovereignty and ensure that U.S. operators and passengers are not penalized by this illegitimate tax,” Sen. John Thune, R-S.D., said in a statement. “More than $3.1 billion will be wrapped up in new taxes between 2012 and 2020 that could otherwise be invested in creating jobs and stimulating economic growth in our country.
The Senate Commerce Committee’s Aviation Operations, Safety and Security Subcommittee passed a bipartisan bill rejecting the EU plan, and the House’s Transportation and Infrastructure Committee passed a similar measure in October. Department of Transportation Secretary Ray LaHood also has railed against the tax, saying the EU should have worked with other countries more before creating the plan.
Chinese airlines say they won't pay the tax, and Lufthansa has called on the EU to postpone implementation until Europe finds better economic bearings. The air cargo slump has hit both regions particularly hard. European volume in June was down 1.1 percent year-over-year as capacity expanded 1.8 percent, while Asian traffic fell 3 percent despite a 1.3 percent shrinkage in capacity in the same period, according to the International Air Transport Association.
-- Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @Szakonyi_JOC
The Senate's rejection of the plan came on Tuesday as representatives from 16 opponents of the carbon tax, including China, Brazil and Russia, met in Washington to create an alternative to the program, according to reports. The countries, however, failed to agree on a joint declaration during the United Nations' International Civil Aviation Organization meeting, according to Reuters.
The countries still have time to pitch an alternative to the EU plan. Although the rule kicked in on Jan. 1, airlines won’t have to buy permits for carbon produced during entire flights, including over non-EU airspace, that land or take off from airports in the 27-nation block until 2013.
“Congress must act to protect America’s sovereignty and ensure that U.S. operators and passengers are not penalized by this illegitimate tax,” Sen. John Thune, R-S.D., said in a statement. “More than $3.1 billion will be wrapped up in new taxes between 2012 and 2020 that could otherwise be invested in creating jobs and stimulating economic growth in our country.
The Senate Commerce Committee’s Aviation Operations, Safety and Security Subcommittee passed a bipartisan bill rejecting the EU plan, and the House’s Transportation and Infrastructure Committee passed a similar measure in October. Department of Transportation Secretary Ray LaHood also has railed against the tax, saying the EU should have worked with other countries more before creating the plan.
Chinese airlines say they won't pay the tax, and Lufthansa has called on the EU to postpone implementation until Europe finds better economic bearings. The air cargo slump has hit both regions particularly hard. European volume in June was down 1.1 percent year-over-year as capacity expanded 1.8 percent, while Asian traffic fell 3 percent despite a 1.3 percent shrinkage in capacity in the same period, according to the International Air Transport Association.
-- Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @Szakonyi_JOC
