Indian nixes EU carbon scheme and threatens retaliation and trade war if the EU doesn't back off ... china has already retaliated against Airbus by cancelling orders and lots of countries apparently are considering similar moves

http://www.aljazeera.com/news/asia/2012/03/201231923173720628.html

India likely to reject EU carbon trading plan

No official go-ahead yet in the wake of China's move to bar its airlines from participating in anti-emission scheme. Last Modified: 20 Mar 2012 00:18 inShare10 Email Print Share Feedback

According to an Indian official, the country will be asking local airlines not to share emissions data [EPA] India is poised to ask airlines not to take part in the European Union emissions trading scheme, a senior official said, in what would be an escalation of a row over the EU's unilateral move to charge for carbon emitted by flights in and out of Europe. China in February barred its airlines from participating in the European scheme, which is meant to reduce emissions. The Indian official, with direct knowledge of talks between the EU and other countries on the issue, told Reuters news agency that India will soon ask local airlines not to share emissions data with the bloc or buy any carbon credits. If the EU retaliates by suspending Indian airlines from flying to Europe, India would make similar moves and consider charging an "unreasonable" amount for flying over India, the official said on Monday. "We have lots of measures to take if the EU does not go back on its demands. We have the power of the economy, we are not bleeding as they are," the government official said, adding that Europe's position would harm its own economy and airlines. Indian government is awaiting formal approvals from several ministries to implement the order to airlines, which it expects soon, the official said. "The questions is, are you (EU) provoking the world into a trade war?" the official said. Last week, China suspended the purchase of 10 more Airbus jets, raising the stakes in the row. India does not yet plan to ask airlines to cancel Airbus purchases, but that is a possibility if the dispute escalates, the Indian official said. Amber Dubey, director for aviation at global consultancy KPMG, said India is in the midst of a huge increase in the size of both its civilian and defence fleets, with a significant share of the orders coming from European suppliers. "The EU-ETS (emissions trading scheme) issue is escalating fears of a trade war between EU and the rest of the world. There is a chance that the government may decide to use these large aircraft orders as a negotiating tool", Dubey said. European planemaker Airbus has a 73 per cent share of the commercial plane market in India. It has orders for more than 250 planes with IndiGo, Go Air and Kingfisher Airlines , making fast-growing India a crucial growth market. Foreign governments say the EU is exceeding its legal jurisdiction by charging for an entire flight, as opposed to  just the part covering European airspace. The European Commission argues the scheme is needed to cut rising emissions and help the world fight climate change. India this month inadvertently delayed approval of some European summer schedules by a day, which disrupted the flight schedules of many European airlines. The official said India may use that example to show how disruptive a dispute with the country could be. "If things continue like this, then European airlines will be forced to avoid flying over India and go over the Indian Ocean and the Bay of Bengal," the official said. "That's not viable for them. They won't have fuel to do that." and..... http://news.sudanvisiondaily.com/details.html?rsnpid=206068 World Powers 'Plan anti-Carbon Tax Talks' India, Russia, the United States, China and other countries will meet in Moscow this month to decide whether to retaliate against the EU's decision to impose a carbon tax on air travel, a report says. The European Union (EU) imposed the tax with effect from January 1, but over two dozen countries, including India, Russia, China and the United States, have opposed the move saying it violates international law. The Press Trust of India late Friday quoted what it said were official sources as saying over 30 countries would meet in Moscow on February 21 and 22 to decide on retaliatory measures against the EU if it insists on imposing the carbon tax on non-EU flights as there was "growing agreement" on the matter. The report did not name the sources. The news agency added that India delivered "a strong message" on the carbon tax issue to an EU delegation led by EU climate chief Connie Hedegaard on Friday in New Delhi. "Even if only India, Russia and China decide to start charging for over-flights by European carriers or decide to restrict the number of flights operated by them citing emission concerns, it could have a devastating effect on the European airline industry," a source said, according to PTI. A "Delhi Declaration" was unanimously adopted at a meeting of the International Civil Aviation Organization Council and other non-EU member states in New Delhi last September. The declaration opposed EU's plan to include all flights by non-EU carriers to and from an airport in the EU territory in its emissions trading system, saying it was inconsistent with applicable international law. The EU has said the carbon tax will help the 27-nation bloc achieve its goal of cutting emissions by 20 percent by 2020.