South Africa is urging the European Union to drop the Emissions Trading System (ETS) for two years, joining a growing legion of countries openly voicing their opposition to the controversial scheme.

During a speech at the Air Transport Action Group (ATAG) in Geneva, tourism minister of South Africa, Marthinus van Schalkwyk proposed that the EU should “suspend the inclusion of aviation in the EU ETS for two years,” in order to provide the industry with time to come to a multilateral global agreement in light of “the new political momentum to negotiations under ICAO.”

Schalkwyk added that “the aggressive unilateralism associated with its [the ETS] introduction leaves a fairly bitter aftertaste” and that the retaliatory actions taken by non-EU countries should not come as a surprise.

Schalkwyk is of course referring to the series of recent moves made by several nations that signal the beginnings of a trade war in an industry already bogged down by high jet fuel prices. For example, not only has China – one of the scheme’s loudest opponents – barred its carriers from participating in the scheme, it has also held back approval for Airbus aircraft orders.

Furthermore, following a meeting in Moscow of more than 20 nations to discuss a set of retaliatory measures against the ETS, an Indian government official has told Reuters that they are also planning on prohibiting its carriers from taking part, although there have been no official statements from the government yet. Reuters has quoted the unnamed official as saying: “We have lots of measures to take if the EU does not go back on its demands. We have the power of the economy; we are not bleeding as they are.”

For in-depth background information on the EU ETS controversy, see

Carbon Conflict

Alisha Haridasani