Recently, India removed itself from the European Union’s carbon code when asking airlines to not comply with the EU’s carbon scheme when travelling along China. The European Union had directed Indian carriers to submit emission details for their aircraft by March 31 2012.

India’s civil aviation minister said that no Indian carrier is submitting them in view of the position of government. There has been an upward resentment by the world’s top three carbon emitters — China, United States and India — saying that the EU is exceeding its jurisdiction.

Ironically, last October in America, the House of Representatives passed a resolution prohibiting US airlines from participating in the EU’s ETS (Emissions Trading Scheme) declaring EU actions directly infringing on the sovereignty of the United States.

According to Matthew Baldwin from the Directorate General for Mobility and Transport, part of the European Commission in Singapore said that from 1990-2006, aviation carbon dioxide emissions doubled while all transport emissions grew only 25 percent.

The real reason for the animosity and political wrangling between the EU and other countries like US, China, Russia and India is the structure of ETS, because under the law, airlines departing from and arriving to Europe are obliged to pay for their entire emission to the EU authorities, and not just on the basis of the quantity of carbon they emit inside the EU.

This year opened a new chapter for the European Union on carbon regulation. The Union began charging all airlines flying in and out of Europe for their carbon emissions.

As a part of new environmental policy, EU adopted a new scheme to regulate green house gases, called EU ETS. Under this scheme, all airlines flying to, from or within Europe will be liable for their CO2 emissions. They will receive trade-able carbon allowances, covering a certain part of CO2 emissions.

The EU believes that the ‘Cap and Trade’ scheme is a fair way to limit carbon emissions by the aviation sector, which represents almost 3 percent of global carbon emissions.

The system involves a regulating body that follows laws designed to curb CO2 emission of factories and airlines. The government set out a cap on pollution through a regulating body in a bid to limit carbon emission, by factories, and other units that emit carbon, including airlines.

The Government then issues credits which allow companies to pollute a certain amount, as long as the aggregated pollution equals less than the cap set. There are alternatives available to limit carbon emissions and they are very diverse in nature. They are known as the Carbon Tax and Carbon Trading scheme or the Carbon Credit Scheme.

Under the Carbon tax scheme, emitter of carbon dioxide into the atmosphere will be taxed as per the law; under the Carbon Trading or Credit Scheme a quantitative limit on the emission will be set by the regulating body, and emitters have to buy credits if they cross the cap or limit set by authorities,

But under the current circumstances, countries are reluctant to comply with ETS and it looks unlikely that these countries will find a reasonable alternative soon. In fact the problem is much greater and not just confined to the aviation sector’s carbon emission, because countries who oppose the scheme say that it directly affects their sovereignty negatively.

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In February this year Prime Minister Julia Gillard announced that her government would begin to put into place a tax on carbon.

This caused controversy in the media and in the court of public opinion, as during her 2010 election campaign Ms Gillard stated on air that there would be tax on carbon if she and the Labor party were elected.

The new tax will be placed on large businesses that are polluting with the most carbon, but Ms Gillard acknowledged on ABC television show Q&A that there would be some cost of living increases as a trickle down from the tax on business.

During the launch of the carbon tax she made clear that price impacts would be felt, particularly in areas which generate a lot of carbon, encouraging them to lower emissions.

“Now as a Labor Government, when we price carbon we will ensure that the carbon price is fair, that it is a fair system.

“Every cent raised from pricing carbon will go to assisting households, helping businesses manage the transition and funding climate change climate change programs, and the Government will always support those who are in need of assistance with cost of living pressures,” Ms Gillard said.

Opposition leader Tony Abbott called for a revolution after Ms Gillard announced the tax.

He and others critical of the scheme have drawn attention to Ms Gillard’s statements before the election saying unequivocally there would be no carbon tax.

In various media interviews Ms Gillard has come under extreme pressure for her new proposal.

Quote from Alan Jones radio program on 2UE in Sydney:

HOST: … they (the electorate) wouldn’t be as angry as they are today were it not for the fact that you said there will be no carbon tax under the government I lead. You said I rule out a carbon tax and Wayne Swan, your deputy, I just want to, so that you understand, Wayne Swan said this, your deputy:

Wayne Swan on Audio Clip: No, it’s not possible that we’re bringing in a carbon tax. That is a hysterically inaccurate claim being made by the Coalition.

The Coalition in Opposition have also been hugely vocal in their disapproval of the carbon tax proposed by Ms Gillard.

Senator Eric Abetz, Leader of the Opposition in the Senate said that a carbon tax will destroy jobs as well as increasing the cost of living and crippling Australia’s trade.

“The Australian people have every right to feel betrayed and outraged by Labor’s shameful deceit,” Senator Abetz said.

“Not only did Julia Gillard deceive the Australian public, it’s clear that in announcing her back flip under pressure from Labor’s Green Alliance partners, the Prime Minister didn’t seek approval from her own Labor colleagues.”

The Opposition have also said the carbon tax is another sign of the power of the Green party in the Labor government.

The 2010 election that placed Julia Gillard and Labor in power did not give Ms Gillard a large enough majority from the voters to have outright power in the Senate.

Ms Gillard formed a minority government with the Green party and several Independents.

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