Airlines find problems with emissions plan

The European Union is taking the lead on environmental taxes to mitigate global warming, with its Emissions Trading System (ETS) kicking in next year.

But the plans are already courting controversy from the airline industry. China sees the costs that Chinese airlines will have to pay to fly into Europe as an "extraterritorial, illegal tax".

Meanwhile Lufthansa, the largest European carrier, believes it may have to pay between €150 million to €350 million per year. The concerns were highlighted by the Association of European Airlines, which said, "The number of countries joining this chorus of indignation is only likely to grow as we get closer to the 1st January 2012 start date."

The next six months should be interesting.

- Ivan Gale