The
European Union's top court backed the inclusion of the airline industry in the
bloc's carbon-trading market, in a decision likely to escalate a diplomatic row
between the EU and its biggest trading partners.
The ruling on Wednesday, which was widely expected, comes as the U.S. and others
intensify pressure on the EU to delay the planned expansion of its
emissions-trading plan to include airlines on Jan. 1, or scrap it for a new
international deal.
The U.S., China
and others have threatened action if their airlines are forced to buy permits
to account for their emissions of carbon dioxide, a move that trade groups say
could cost 20 billion euros ($26 billion) by the end of the decade. The European Commission, the
executive body of the EU, has estimated that the plan could increase the cost
of a single trip ticket by between 2 euros and 12 euros, depending on the
length of the flight.
"The directive including aviation activities in the EU's emissions-trading
scheme is valid," according to a statement issued by the Luxembourg-based
European Court of Justice shortly after its ruling. The court, whose ruling
can't be appealed, was expected after a court advocate-general's opinion
supported it earlier this year.
A new EU law includes airlines in the bloc's carbon-dioxide Emissions Trading
System, beginning Jan. 1, when all airlines will have to hold permits to cover
CO2 emitted by aircraft landing and taking off from EU airports.
The U.S.
said 41 countries have registered objections to the ETS as a unilateral action
in breach of international law. Lawmakers are pushing bills that would ban U.S. airlines
from complying.