Global airlines attacked the European Union on Sunday over its plan to force them into the bloc's emissions trading scheme, as the EU vowed to stand firm against threats of retaliation. Aviation chiefs spoke out against the EU move in Singapore at the start of a meeting in a glitzy casino resort, with some warning of the danger of a trade war and airlines from poorer nations saying they would pay a high price.
The EU will require all airlines flying to Europe to be included in the Emissions Trading Scheme (ETS) from January 1 next year. The system forces polluters to buy permits for each tonne of carbon dioxide they emit above a certain cap.
The scheme is meant to tackle growing emissions from the $500 billion aviation sector, which is responsible for about two percent of mankind's greenhouse gas pollution.
Airlines say the scheme will increase costs and comes at a time when fears are growing about a faltering global economy, which could slash industry profit expectations.
Governments and airlines have been piling on pressure, some describing the forced inclusion of global airlines as illegal.
"The last thing that we want to see is a trade war," said Giovanni Bisignani, director-general of the International Air Transport Association. The EU had to heed a "growing chorus of countries strongly opposing an illegal extraterritorial scheme".
Chinese and US airlines have been among the most vocal, with Beijing's aviation authority saying the EU move will cost Chinese airlines 800 million yuan ($123 million) in the first year and more than triple that by 2020.