India, 25 others oppose EU plans to charge airlines for carbon emissions.

European Union plans to charge airlines for carbon emissions are discriminatory and violate global laws

The representatives from North and South America, Asia and Africa, including the U.S., Japan, India, Russia, China, Argentina and the U.A.E., called on ICAO to continue its efforts to reduce airlines’ greenhouse gas emissions in a joint declaration signed in New Delhi on Sept. 30. The declaration opposes the EU ETS as inconsistent with international law, including the Chicago Convention. It also urges ICAO to develop a “meaningful aircraft CO2 standard with a possible implementation date of 2013. The declaration acknowledges that growing aviation greenhouse gas emissions are a concern, but it highlights the advances in fuel efficiency and stresses the need for comprehensive air traffic management reform along with advances in biofuels and other technological solutions to the problem.

Another concern is that the European Commission’s environment directorate may negotiate so-called equivalent measures with other countries. Under the terms of the EU law, if other countries put in place equivalent measures to charge for airline carbon dioxide output, then the EU would set aside its charging mechanism for those countries. But European airline officials worry the definition of what constitutes an “equivalent measure” could lead to market distortions, giving foreign carriers a pricing edge.

The EU says it needs to put a price on carbon dioxide (CO2) emissions to guard against future climate impacts such as crop failures, droughts or flooding. It has launched an emissions trading scheme ETS.L to help it cut carbon dioxide emissions, which it has pledged to reduce by 20 percent below 1990 levels by 2020. From January 2012, airlines flying into or out of EU airports will have to surrender permits to cover all the CO2 they emit during the entire flight. They join some 11,000 factories and power plants already in the $100 billion market.

ICAO said the issue of aviation in the EU ETS is on the agenda for the 190-nation body's next meeting in November, where the group of 26 countries said they will submit a working paper along with their joint declaration in opposition of the scheme.

Critics the opposing governments have called the "unilateral" scheme illegal, saying it violates the Chicago Convention on international aviation as well as some provisions under the World Trade Organisation.

Three U.S. airlines are currently challenging the EU plans in Europe's highest court, which is due to give its first opinion on the case on October 6.

The EU maintains that it could exempt airlines from countries that have adopted climate policies deemed equivalent to Europe's targets. But some nations have scoffed at the offer and retaliated instead through other means, saying aviation should be regulated on a global level through measures approved by all ICAO members.

Meanwhile, a study on biofuels conducted by a team led by the French aerospace research agency Onera recommends that some of the revenue generated through the ETS be plowed into developing a biofuel industry to support aviation. The 26-month study was undertaken for the European Commission. Other recommendations include putting in place incentives to encourage the production of biomass which would form the feedstock for biofuels as well as the harmonization of certification stages for sustainable biofuels through the International Civil Aviation Organization.

China and Russia have suggested unilateral actions to fight the EU policy. One concern is Russia could curtail overflight rights for European airlines flying to Asia. Sources report, China blocked a $3.8 billion aircraft purchase by Hong Kong Airlines from France-based Airbus at the Paris air show in June.