US, Russia Threaten EU over Airline CO2 Rules

Countries opposed to an EU law forcing the world's airlines to pay for greenhouse gas emissions agreed on a basket of retaliatory measures, adding to a series of threats that have raised the prospect of the globe's first carbon trade war.

The array of potential steps include barring national airlines from participating in the EU program, lodging a formal complaint with the United Nations' International Civil Aviation Organization (ICAO), ceasing talks with European carriers on new routes and imposing retaliatory levies on EU airlines.

Mark Toner, a spokesman for the U.S. State Department, said Washington still hopes the EU will reconsider.

Russia took a tough line.

"We have demonstrated our determination to ask for a cancellation or postponement of the EU ETS" in regard to airlines," Valery Okulov, whose ministry hosted the meeting attended by more than 20 nations, said.