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June 24, 2017

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Europe mulls suspending airline emissions fee to avert trade war

BERLIN -- European officials signaled Tuesday that they may recommend the suspension of the continent's carbon emission fees for airlines to avert a trade war with major economic powers such as China and the United States, allowing time to forge a global agreement on climate charges for the aviation industry.

China and India have prohibited their airlines from participating in the European Trading System because it will require airlines that fly to and from Europe to buy permits for all the carbon they emit en route, a measure they say infringes on their sovereignty. Beijing has also blocked purchases of European aircraft by its carriers — prompting alarm from Europe's aircraft maker Airbus, which sees China as its fastest-growing market.

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