US maintains attack on 'lousy' ETS

The EU's Emissions Trading System (ETS) is "lousy and bad policy", US Transportation Secretary Ray LaHood told the Senate Committee on Commerce and Transportation on 6 June.

LaHood said the EU should "engage constructively to find a global approach that works for the rest of the world and allows it to set aside ETS in relation to foreign carriers". He added: "We strongly urge the EU to cease application of the ETS to international aviation in order to help accelerate our efforts to forge a global solution. We need to see real signs of flexibility from the EU."

The ETS, which took effect on 1 January, means that all airlines using EU airports must pay into a carbon offset programme, prompting threats of an international trade war with the potential to disrupt global air traffic. Under the ETS, air carriers are required to reduce aviation greenhouse emissions or buy additional allowances for emissions beyond a set level, in order to avoid fines. The law has a long lead time - airlines do not face their first bill until April 2013.