The Indian government has asked the country’s airlines to refrain from submitting carbon emissions data to the European Union (EU) for a new tax that will become applicable from 1 January for flights to Europe, hardening its stand further against the imposition of the levy.
Under the planned Emission Trading Scheme (ETS), airlines using EU airspace will have to pay a fee for carbon emissions that exceed a set limit. They will also need to pay for the part of the journey covered by non-EU airspace.
India has led the opposition to the move with support from more than two dozen countries including the US and China.
“I am directed to say that the ministry has decided that there is no need for Indian carriers to submit any data to European Union under EU-ETS,” the civil aviation ministry said in a letter to all the domestic airlines that fly on international routes on 25 November.
“Any correspondence received at your end (airlines) from the EU in this regard may be forwarded to this ministry, for taking necessary action,” the letter added.
The data is critical for working out how much an airline needs to pay.
The EU-ETS will follow an annual cycle: operators will be required to monitor yearly emissions, from 1 January to 31 December, on a per-flight basis, said Isaac Valero-Ladron, EU spokesperson for climate action commissioner Connie Hedegaard.
This data must then be aggregated in an annual emissions report and verified by an independent accredited verifier. By 31 March of the following year, the verified report must be submitted to a competent authority.
The EU maintains it’s not a tax. “Yes, the inclusion of aviation in the EU emissions trading scheme is on track. Our law will be implemented on 1 January 2012, as planned and announced,” Valero-Ladron said.
Air India is likely to pay about Rs. 200 crore if such a tax is allowed under ETS, while Jet Airways, which has a European hub in Brussels for its flights to North America, expects about Rs. 100 crore in annual outgo, according to two respective senior airline officials, who declined to be identified.
John Slosar, chief executive officer (CEO) of Hong Kong’s Cathay Pacific Airways Ltd, expects a Hong Kong ticket to Europe to cost HK$50 more as a result of the ETS in the first year alone.
Indian carriers are yet to start charging passengers for the ETS.
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