Cambridge University Analysis Finds EU On Firm Footing

A study conducted by Cambridge University shows that the EU's Emissions Trading System, or ETS, would likely survive any challenge from the WTO.

Lorand Bartels, one of the University's senior lecturers in WTO and international law called the scheme "a bit messy," but "at the end of the day, it's justifiable." He said the ETS was on solid environmental and legal ground "on most points."

Bloomberg Businessweek reports that Bartels found that there are likely some violations of global trade rules in the ETS, the WTO does permit measures "necessary to protect human, animal, or plant life or health." The paper was presented at a conference Friday in Geneva.

One contradiction Bartels found was that emissions taxes are only calculated from the last stop before landing in Europe. For instance, a flight originating in LA flying to London but which stops in New York would only be taxed on the New York to London leg. But that flight, because of the second takeoff, would actually emit more carbon dioxide than a similar direct flight.

Bartels says that to be successful through the WTO, the entity bringing the complaint would have to be able to prove that the EU could have achieved a similar result through alternate means. He said it is "notoriously difficult" to prove that in an abstract case.

USA Today reports that the FAA's assistant administrator for policy, international affairs and the environment said at a U.S. Chamber of Commerce panel Thursday that the ETS was a "major impediment" to agreement on global climate change policy. Julie Oettinger said that the European instance on the policy has hurt negotiations between Europe, the U.S., and developing countries on the issue.

In a related development, the Toonari Post is reporting that India's civil aviation minister has said that no Indian airline has submitted emissions details to the EU on March 31st, 2012 as required by the law. Rotor News reports that India's environment minister, Jayanthi Natarajan, claims that a European Union scheme to tax airlines for carbon emissions is a deal breaker for upcoming talks on global climate change. "I shall stick my neck out and say, for the environment ministry, yes, the unilateral measure by the EU... is a deal breaker for the talks. I strongly believe that as far as climate change discussions are concerned, this is unacceptable."

The EU Climate Commission said that the ETS should not be a deal breaker for the talks. They continue to say that the measure is designed to encourage other countries to devise similar measures to reduce carbon dioxide emissions.

FMI: www.trinhall.cam.ac.uk