Obama Gives Shield To Airlines

President Barack Obama signed a law Tuesday that shields U.S. airlines from having to comply with a greenhouse-gas standard adopted by the European Union, ratcheting up a conflict that reflects U.S. concerns about European environmental measures.

The bill recently passed both the House and the Senate, with both Republican and Democratic lawmakers saying the EU lacked the power to create standards for U.S. operators.

The EU’s program requires airlines using European airports to obtain allowances for carbon dioxide emitted during the full length of their flights. Airlines that exceed designated limits will be allowed to buy additional allowances on the open market.

Earlier this month, the EU said it would postpone the greenhouse-gas program for a year. The EU said it was encouraged by progress being made in a United Nations agency that develops global aviation policy and is working on similar standards for use around the world.

Despite the EU delay, U.S. lawmakers said the law signed by Mr. Obama was needed in case the U.N. effort stalled and the EU went ahead with enforcing its program in 2013.

“American sovereignty will no longer be threatened by the EU’s illegitimate and disingenuous ‘environmental’ tax on our country,” said Sen. John Thune (R., S.D.), the primary author of the bill, on Tuesday.

U.S. airlines said the greenhouse-gas requirement would have cost them $3 billion between now and 2020. Some airlines already started to charge fees on trans-Atlantic flights to cover future costs. The law doesn’t immediately forbid U.S. airlines from taking part in the EU program but empowers the administration to exempt U.S. airlines at a future date.

“We regret the...decision to adopt the so-called Thune bill,” a spokeswoman for the EU said. “We encourage all countries, including the U.S., to focus their efforts on injecting positive ideas and forward-looking solutions into that UN-led process.”

“The Obama administration is firmly committed to reducing harmful carbon pollution from civil aviation,” a White House spokesman said. “But, as we have said on many occasions, the application of the EU [standard] to non-EU air carriers is the wrong way to achieve that objective.”

Environmental groups said Mr. Obama’s handling of the EU airline bill marked his first test on climate change following re-election. In previous weeks, environmental groups criticized the president for failing to talk about climate change during campaign debates.

World Wildlife Fund, one of the environmental groups supporting the EU, said Tuesday it was “disappointed” the measure was signed into law. The group said it was pleased, however, that the U.S. was willing to adopt a global standard under the umbrella of the U.N.’s International Civil Aviation Organization.

Depending on what the EU decides to do a year from now, the new U.S. law could escalate tensions over the greenhouse-gas standard. China, Russia and other nations have said they also oppose the EU’s program.

http://online.wsj.com/article/SB10001424127887324784404578145602934327318.html