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Europe's top court backs EU on airline carbon tax

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Europe's top court backs EU on airline carbon tax

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Transatlantic turbulence lies ahead, now that all airlines flying to and from the EU will be charged for their carbon emissions from January 1.

The European Court of Justice in Luxembourg declared the plan valid, ruling against US carriers contesting the legislation.

Critics of the EU rules argue that under the 1997 Kyoto climate pact, countries agreed to address emissions jointly through the UN’s aviation body.

US Secretary of State Hillary Clinton has warned that Washington will take action over the move. Proposed legislation in the American Congress could make it illegal to comply with the EU law.

As for passengers, the fear is that the charges paid by the airlines could mean higher fares.