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Tue, Mar 27, 2012

India Says 'No' To EU Carbon Tax

Bans Its Airlines From Participation In The Emissions Trading System

Another country has joined the ranks of those which have balked at paying the European Union for carbon credits for airline flights which cross European airspace.

India becomes the latest government to say its airlines will not participate in the carbon trading scheme. India's Civil Aviation Minister Ajit Singh said in a speech to that country's Parliament that airlines would simply refuse to hand over emissions data to the EU, so the carbon tax is a non-issue,according to the French news service AFP.

"Though the European Union has directed Indian carriers to submit emission details of their aircraft by March 31, 2012, no Indian carrier is submitting them in view of the position of the government," he said.

India's move is similar to one made last month by China. Refual to participate in the plan was one of several strategies to come out of a meeting of several nations opposed to the plan held last month in Moscow. The so-called Moscow declaration also allows governments to take other measures against the EU tax, such as imposing their own taxes on airlines flagged in EU countries.

The Emissions Trading System (ETS) is also being cited in China's decision to suspend purchase of Airbus airliners worth some $14 billion to the planemaker. Some analysts say that the ETS is leading to a possible trade war.

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