The EU is standing its ground in response to India’s and China’s defiance of Europe’s costly carbon-trading scheme for airlines, refusing to back down despite threats of a trade war. EU Climate Commissioner Connie Hedegaard told the Financial Times:
“You can’t threaten a trade war just because you don’t like European legislation.” [...]
“If there is some European legislation you do not like, can you then threaten us?” she asked. “I think most industrialists in Europe understand we can’t have that game in the 21st century.”
Hedegaard went on to note that Europe’s law is set to expire if a global treaty takes its place, so anyone who takes offense with the EU plan should just work with Europe in the UN to create a global carbon-trading scheme.
If Europe is waiting for a global carbon treaty to end this spat, this could be a long war indeed. Past attempts at comprehensive global climate treaties have ended in disaster, and China and India’s recent actions show no signs that they have changed their minds on this subject.
Europe doesn’t need a trade war right now, but greens appear determined to drive it into one.