THE INDIAN Civil Aviation Ministry has warned that it may be forced to impose a similar tax on all European carriers operating in India if the European Union (EU) enforces a carbon tax on Indian airlines flying to European destinations from this month.
A spokesperson for the Indian Civil Aviation Ministry said that the various chief executives of European carriers operating in India had been summoned to discuss the impact of the European Union-Emissions Trading Scheme (EU-ETS) on airline operations and airfares.
The EU intends to tax airlines on the basis of carbon emissions in excess of the allowance made for each type of aircraft in EU airspace, and fees for all landings and take-offs would be imposed.
The airlines are given the option to buy carbon credits at about eight euros per tonne. If an airline declines to purchase carbon credits then a penalty of 100 euros per tonne would be imposed.
The US and China have warned the EU that they are also considering retaliatory measures.
The EU–ETS is targeting a 190 million tonne reduction in carbon dioxide emissions by 2020.
