US Congress rejects EU environmental legislation

The US House of Representatives has voted overwhelmingly against EU environmental legislation that is set to take effect in 2012.

Under the terms of the new law, airlines would have to pay for carbon allowances if they intend to use EU airspace. If emission levels are exceeded, carriers will be hit with fines.

The emissions trading scheme has been widely panned in the US and China, with airlines, travel companies and businesses concerned the extra costs would cripple many businesses.

Now, Congress has voted against the proposals, which will add to the legal wrangle surrounding the reforms.

House Transportation Committee chairman John Mica was reported by Reuters as saying that the system was "a taxing scheme" and a violation of international trade regulations.

Last month, the International Air Cargo Association also hit out at the EU laws, claiming airlines would incur additional costs in the region of $3.5 billion (£2.2 billion) by 2020.

Posted by Joseph Hutton