Intensifying the protest against European Union's imposition of carbon tax on airlines flying into their airspace, India, China and Russia may soon respond together with a retaliatory fee on European carriers, making it difficult for them to fly east.
The move, which has the potential to dent the business of EU air carriers, is expected to be announced after 27 protesting countries, including the USA, Canada, UAE, Japan, Singapore and Thailand, meet in Moscow on February 21 and 22 to chalk out retaliatory measures to the carbon tax. According to the Indian government, the EU emission trading system (ETS) has the potential to degrade into a trade war as per a report in ET by Anindya Upadhyay.
"This kind of measure could very well be applied to any sector. What if it is applied to maritime? Everything coming to India will become more expensive. The very principle of charging beyond your shores is wrong, without bilateral consultation," said a government official representing India in the ongoing discussions against the ETS.
Civil aviation minister Ajit Singh spoke to Connie Hedegaard, European Union climate action commissioner who was in New Delhi, on the issue and conveyed that the EU ETS affects Indian sovereignty, more than anything else.
"We compliment the EU for implementation of ETS within their boundaries, but not outside," Singh told Hedegaard.
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