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Carbon Tax: India, US, others to decide on retaliatory measures

Published: Friday, Feb 3, 2012, 19:53 IST
Place: New Delhi | Agency: PTI

India, Russia, the United States, China and other countries would meet in Moscow later this month to decide on whether to take retaliatory measures against the European Union (EU) on its "unilateral" decision to impose carbon tax on air travel.

A strong message was learnt to have been delivered to an EU delegation led by Commissioner for Climate Action Connie Hedegaard on Friday, in which the Indian side is understood to have taken a hard posture on the issue.

The EU has imposed the tax with effect from January one, but 26 countries, including India, Russia, China and US, had jointly opposed the move saying it was "inconsistent with the international legal regimes".

Official sources said over 30 countries would meet in Moscow on February 21 and 22 to take a decision on what retaliatory measures could be taken against EU if it insists on imposing the carbon tax on non-EU flights as there was a "growing agreement" on the matter.

"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 being operated by them citing emission concerns, it could have a devastating effect on the European airline industry," the sources said.

A 'Delhi Declaration' was unanimously adopted at the meeting of International Civil Aviation Organization(ICAO) Council and other non-EU Member States here last September.

The declaration had 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. It had called upon the EU not to include these flights in its emissions trading system.

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