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Britain for negotiated settlement of aviation tax

Delhi,Business/Economy,Diplomacy,Environment/Wildlife, Thu, 19 Apr 2012 IANS

New Delhi, April 19 (IANS) Britain Thursday called for negotiated outcome on the issue of a carbon tax imposed by the European Union (EU) on flights landing in the Eurozone following Indian Environment Minister Jayanthi Natarajan terming it "a deal-breaker" in climate change talks.




"We want to see a negotiated outcome. The International Civil Aviation Organisation (ICAO) should play much stronger role in leading to an agreed international outcome," British Minister of State for Environment and Climate Change Gregory Barker told reporters here.


EU's proposal to cap planet-warming gases under its emission trading system makes it mandatory for airlines flying into its airspace to buy carbon credits equivalent to the carbon dioxide emitted by their aircraft.



India has asked national carriers to not submit emission details, demanded by March 31, 2012, to the EU.


Despite opposition from over two dozen countries, including the India, US, Australia, Russia and China, the EU's Emissions Trading Scheme (ETS) came into force on Jan 1.


It levies a charge on flights in EU airspace based on emissions but creates carbon allowances which airlines can cap and trade. No carrier will have to pay a bill until 2013, after this year's carbon emissions have been assessed.


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