Wednesday

29th Nov 2023

EU faces multiple trade wars defending green policies

  • EU climate targets draw fire from aviation and oil industry (Photo: Mikko Itälahti)

EU measures to cut CO2 emissions and improve the climate have sparked outrage in the global aviation industry and most recently in Canada, home to the world’s second largest fossil fuel reserves.

The Guardian newspaper has revealed that the EU intends to label fuel from tar sands, which would include oil from the Canadian Alberta province, as “highly polluting” in a vote in an expert committee dealing with energy issues on Thursday (23 February). The label could render extraction and exploitation of the tar sands more difficult and more expensive.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The move follows a decision by the European Commission in October to qualify tar sands as a quarter more CO2 polluting than crude oil. The EU executive is also preparing a draft bill that would require suppliers to reduce transport-fuel carbon emissions.

Canada’s ambassador to the EU and its oil minister has warned the new labelling may spark a trade war. A letter sent to EU commissioners in December stated “Canada will not hesitate to defend its interests, including at the World Trade Organisation.”

According to the Albertan government, the province ranks third after Saudi Arabia and Venezuela in terms of proven crude oil reserves and generated €2.8 billion in royalties from oil sands projects in 2011. As a whole, the industry was worth €8.6 billion in 2009 and employs some 140,000 people.

The tar sands, a wide expanse of heavy molasses-like bitumen seeping to the surface in Canada’s western province of Alberta, is described by environmental groups as one that accelerates climate change and destroys surrounding communities.

Both the Canadian and Albertan governments announced an oil sands research agreement last Thursday (16 February) that they claim would help reduce energy use and greenhouse gas emissions.

Aviation industry in Moscow

Separately, nations opposing the EU’s green tax on all airlines operating in Europe are meeting in Moscow on Tuesday (21 February) to discuss countermeasures.

The Emissions Trade Scheme (ETS) was launched on 1 January this year and aims to help Europe achieve its goal of cutting emissions by 20 percent by 2020, with aviation accounting for about 3 percent of the EU's total greenhouse gases.

The United States, China, India and Russia along with 22 countries oppose ETS which they claim is illegal and too expensive as it forces to airlines to help pay for pollution.

On Monday, climate change commissioner Connie Hedegaard proposed that the disgruntled countries come up with another plan.

"We know what you don't like, but what's your constructive proposal for a global agreement on aviation?” she posted on her Twitter account.

Hedegaard quoted China Daily which said any attempt to launch “a full-scale trade war against the EU merely for the sake of China’s aviation industry interests” would be unwise.

China is flat-out refusing to comply with the new rules and banned its airlines from increasing fees to absorb the tax in February. Beijing says Chinese airlines would have to pay an additional €97 million per year.

The meeting in Moscow ends on Wednesday.

China confronts EU on aviation tax

China has banned its airlines from taking part in Europe's Emissions Trading System, which forces all airlines flying in and out of Europe from 1 January this year to buy pollution permits.

EU to put higher pollution price on tar sands

The European Commission on Tuesday proposed that oil derived from tar sands be given a higher greenhouse-gas emission value, a move slammed as "unjustified" and "discriminatory" by Canada, the world's largest producer of this fossil fuel.

Opinion

Will EU climate chief Hoekstra come clean before COP28?

As the new EU climate commissioner, Wopke Hoekstra, heads to COP28, three senior MEPs question his ties to the fossil-fuel industry — and call for him to disclose all his ties while working for 11 years for McKinsey.

Latest News

  1. The EU's 'no added sugars' fruit-juice label sleight-of-hand
  2. EU belittles Russia's Lavrov on way to Skopje talks
  3. Member states stall on EU ban on forced-labour products
  4. EU calls for increased fuel supplies into Gaza
  5. People-smuggling profits at historic high, EU concedes
  6. EU bets big on fossil hydrogen and carbon storage
  7. How centre-right conservatives capitulate to the far-right
  8. My experience trying to negotiate with Uber

Stakeholders' Highlights

  1. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  2. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?
  3. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  4. UNOPSFostering health system resilience in fragile and conflict-affected countries
  5. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  6. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste

Stakeholders' Highlights

  1. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  2. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA
  3. Nordic Council of MinistersGlobal interest in the new Nordic Nutrition Recommendations – here are the speakers for the launch
  4. Nordic Council of Ministers20 June: Launch of the new Nordic Nutrition Recommendations
  5. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  6. ICLEISeven actionable measures to make food procurement in Europe more sustainable

Join EUobserver

Support quality EU news

Join us