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Q+A: will Moscow talks unleash carbon trade war against EU?

(Planet Ark 21 Feb 12) A group of nations opposed to an EU law forcing all airlines to pay for their emissions meets in Moscow this week to debate possible retaliation, raising the risk of a trade war.

From January 1, all airlines using EU airports are obliged to acquire carbon allowances under the EU Emissions Trading Scheme (ETS). The law has triggered international protest from nations including the United States, China and India.

The following looks at what the meeting on Tuesday and Wednesday could decide and what might happen next.

WHAT'S ON THE AGENDA?

The Moscow agenda is expected to debate a range of possible counter-measures, ranging from a formal dispute at the U.N.'s International Civil Aviation Organization (ICAO) to blocking legislation banning airlines from participating in the EU's ETS to retaliatory fees for EU flights.

Planet Ark 21 Feb 12: Q+A: will Moscow talks unleash carbon trade war against EU?


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