Airlines to pay carbon emissions tax to enter Europe

Europe's highest court has given its backing to an EU law which will see airlines charged for carbon emissions on flights to and from Europe, a decision likely to escalate tension with its trading partners.

REUTERS - Koen Lenaerts, European Court Of Justice Judge, saying :

"The court by its grand chamber hereby rules..."

The European Union's highest court has ruled in favour of a law charging airlines to offset carbon emissions for journeys to and from Europe.

Under the law, all airlines flying to and from EU airports will have to buy permits through an emissions trading scheme from the first of January.

The initial cost is expected to be minimal but would rise to an estimated 9 billion euros ($11.8 billion) by the end of 2020.

U.S. airline body Airlines for America claims the legislation represents an illegal tax on US citizens and say it is reviewing its legal options. In the meantime, however, it says it will comply under protest.

Joanne Nicholson, Reuters