ICAO evolving agreement on global carbon-reduction programme

India and some other major nations have been opposing the EU's "unilateral" move to include civil aviation in its ETS and tax all flights over the European sky

In a bid to avoid a trade war in the wake of EU's move to impose carbon tax on all airlines using its airspace, International Civil Aviation Organisation (ICAO) is in the process of evolving an agreement on a global carbon-reduction programme to be effective from 2016.

Since last year, India and major nations like the US, Russia, China, Saudi Arabia and Brazil have been staunchly opposing the European Union's "unilateral" move to include civil aviation in its Emission Trading System (ETS) and tax all flights over the European sky.

These countries have also held the EU move ultra vires and said it went counter to the provisions of the ICAO.

The ICAO General Assembly, now in session in Montreal which is being attended by representatives of over 190 countries, are trying to iron out differences over the first- ever commitment to a carbon tool for the global aviation industry that would reduce emission, official sources said.

An agreement, if adopted by the UN body, would not authorise EU measures before the global deal unless other states agree, they said, adding that a failure by the ICAO to reach a deal would risk a trade war between Europe and other regions.

The Assembly is discussing whether to agree on the details of a global carbon-reduction programme for airlines in 2016 and start the system by 2020, the sources said.

A potential deal, which lay the groundwork for a single worldwide industry, would help avert the trade war over the carbon-reduction policies, they said.

India has not only been opposing the EU threat to impose carbon tax, but have also asked Air India and Jet Airways, which fly to Europe, not to accept EU-ETS and not report their emissions over the European skies to EU authorities.