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Updated: July 8th, 2008 05:26 PM GMT-05:00

U.S. Opposes European Plan to Cut Aircraft Emissions

John Heilprin
The Associated Press

The Bush administration opposes European plans to require airlines to curb greenhouse gases on grounds it would unfairly disadvantage U.S. carriers.

"We are strongly opposed to the imposition of a tax. We think this will violate trade rules," James Connaughton, chairman of the White House Council on Environmental Quality, told a group of international reporters Thursday.

"It's also not a smart way to find your way to efficiency in the aviation (industry)," he said. "The aviation sector has already made dramatic progress in becoming more fuel efficient because they have to. It costs a lot of money to fly people around."

Connaughton said a better approach is to "come up with a partnership to ensure new approaches that are efficient, but also to relieve congestion that is in the airways. There are real restrictions between our markets and also with Asia that causes a tremendous extra consumption of fuel that's necessary."

Technically, the European Commission is not proposing a tax. Instead, it is writing rules to require that airlines trade carbon emissions. Given a choice, airlines told the commission they preferred a cap-and-trade scheme over a tax on carbon emissions.

To Connaughton, "It goes right to the customer, to the bottom line of what it costs to fly. Let's just call it what it is: It's a tax."

He did not elaborate on whether the Bush administration would complain to the Geneva-based World Trade Organization once the commission proposal is made public.

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