U.S. House Votes Against EU Carbon Tax on Aviation

Bethany Whitfield

Thursday, October 27, 2011 at 07:10 PM ET

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Key Takeaways:

The U.S. House of Representatives, in a bipartisan vote, rejected the European Union's plan to impose a carbon tax on commercial and general aviation aircraft.
The House bill prevents U.S. airlines and general aviation operators from participating in the EU tax program, which is scheduled to take effect at the beginning of the new year and could cost the industry $3.1 billion.
Opponents argue the EU's carbon tax unfairly levies fees based on total flight distance, including time spent over non-EU territory.
Despite the House's action and the bill moving to the Senate, the European Union affirmed its intention to proceed with the program's implementation.

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In a bipartisan vote on Monday, the U.S. House rejected the European Union’s plan to enact a carbon tax on commercial and general aviation aircraft flying over or landing in EU territory.

The bill prevents all U.S. airlines and general aviation operators from participating in the EU tax program, scheduled to take effect at the beginning of the new year, if it is unilaterally imposed. The legislation also instructs federal agencies to take action to prevent negative ramifications of the measure on U.S. flight operations in Europe.