Protesting Inclusion Of Non-European Airlines In European Carbon Trading System

Sources with inside knowledge say that the Kingdom of Saudi Arabia, OPECs largest oil producer, has ordered its national airline to basically ignore the EU-ETS because it includes non-European carriers in its carbon market.

While not officially confirmed, Bloomberg News reports that the Kingdom notified the EU of its decision, and that talks are underway in an effort to find a compromise.

Saudi Arabian energy consultant Mohammed al-Sabban, who at one time was the Kingdom's chief climate negotiator, told Bloomberg that the intent was to send a message that "the case will not end easily." He said it is his impression that the EU expects that, over time, their charges for carbon emissions will become "normal and acceptable." State-owned Saudi Arabian Airlines is the only Saudi carrier to operate flights to Europe, according to Bloomberg.

Opposition to the inclusion of non-European airlines in the carbon trading program, which it enacted because of what it said was "inaction" on the part of the ICAO to produce a plan to cut carbon emissions, continues to be strong. The U.S., China, India, and Russia have all made it clear that they disagree with the broad scope of the EU-ETS. China has threatened to reduce the number of Airbus airplanes it buys as a result of the plan. The U.S. House and Senate have both passed legislation forbidding U.S.-flagged airlines from participating in the plan.

While there is strong opposition, the EU's regulatory arm said that most non-European carriers that operate in European airspace actually reported their carbon emissions for 2011 to the EU as required by the law. Only eight airlines in China and two in India failed to comply, according to the commission.

FMI: http://europa.eu/index_en.htm