India could consider taking retaliatory action against the European Union for imposing a carbon tax on airlines operating from India. On the other hand, India will again try to build pressure on EU for withdrawal of the carbon tax when over 20 nations meet in Moscow on February 20 to discuss the issue.
A senior Government official told Business Line , “Imposing some conditions on the European Carrier is one of the views being examined.” Although he refuses to divulge the details, but retaliatory action could be on the similar line. The 27-member European Union has asked all airlines flying in and out of to meet a specific carbon emission requirement, otherwise they will have to pay tax under EU ETS (Emission Trading System).
The present operations of Indian carriers to the EU are unlikely to be affected by the imposition of the new tax, but any additional flights to existing or new destinations could run into trouble, he added. At present, Air India and Jet Airways fly to EU countries along with Kingfisher which flies only to the UK. The Civil Aviation Ministry has also asked Indian carriers not to respond individually to any missive from the EU on the issue.
The carriers were asked to approach the Government so that a collective India stance could be presented to the EU. Meanwhile, European carriers have told the Indian Government that they have already bought credit worth €90,000. Meanwhile, India will take the campaign forward in Moscow.
“The number of countries protesting the imposition is growing. What is encouraging is that some African countries are also likely to join the ranks of countries protesting the move,” the official said. This meeting is expected to be attended by China and the US.
Earlier, on September 30 last year, India led 25 other countries to issue the ‘Delhi Declaration'. The Declaration opposed the EU's plan by saying that it is inconsistent with applicable international law. It urged the EU and its member-States to refrain from including flights by non-EU carriers to/from an airport in the territory of an EU member-State in its emissions trading system. It also urged the EU and its Member States to work collaboratively with the rest of the international community to address aviation emissions.
In addition to the Joint Declaration, it was planned to send draft demarche to the EU bilaterally by the nations was also discussed, in which it was highlighted that the EUs approach under the directive is unacceptable and that there is a need to foster development of a full range of solutions that achieve performance, improvements rather than insist on imposing one nation's or region's particular solution on all other countries.