The First Climate Change Trade War Breaks Out?

Pay up to fly the carbon friendly skies of Europe.Starting January 1, the European
Union has begun imposing a requirement that all airlines landing in
Europe must show that they have bought carbon emissions permits
equal to the amount of carbon dioxide emitted by the aircraft.
Airlines without the proper number of allowances would be fined up
to $130 per ton of carbon dioxide emissions and could be barred
from European airspace. In November, the International Civil
Aviation Organization issued a statement urging the E.U. to exempt
international airlines from its carbon rationing scheme. The ICAO
was backed by 26 countries, including the U.S., Russia and Japan,
who argued that the plan violates international law.

In December, the European Court of Justice ruled against U.S.
carriers who are contesting the plan. As Euronews
reported
:

US Secretary of State Hillary Clinton has warned that Washington
will take action over the move. Proposed legislation in the
American Congress could make it illegal to comply with the EU
law.

The U.S. is not alone in objecting the new carbon tax on
international travel. China and India have declared that their
airlines will
refuse to pay
for the permits. India may ask its airlines to
refuse to supply E.U. regulators with emissions data. In the
meantime, USA Today is reporting that Delta,
United-Continental, and U.S. Airways
are adding a $3 surcharge
to tickets for flights to Europe.

From the E.U. point of view the question is: why should their
airlines be put at a competitive disadvantage because of their
compliance with carbon emissions restrictions? This airline tariff
fight could be the first shot in the future trade wars that result
from climate change protectionism.