World Bulletin/News Desk
The Senate unanimously passed a bill on Saturday that would shield U.S. airlines from paying for their carbon emissions on European flights, pressuring the European Union to back down from applying its emissions law to foreign carriers.
The European Commission has been enforcing its law since January to make all airlines take part in its Emissions Trading Scheme to combat global warming, prompting threats of a trade fight.
The Senate approved the bill shortly after midnight, as it scrambled to complete business to recess ahead of the Nov. 6 congressional and presidential elections.
Republican Senator John Thune, a sponsor of the measure, said it sent a "strong message" to the EU that it cannot impose taxes on the United States.
"The Senate's action today will help ensure that U.S. air carriers and passengers will not be paying down European debt through this illegal tax and can instead be investing in creating jobs and stimulating our own economy," Thune said in a statement.
The House of Representatives has passed a similar measure, and could either work out differences with the Senate's version or accept the Senate bill when Congress returns for a post-election session.
So far, nearly all airlines have complied reluctantly with the EU law, but Chinese and Indian carriers missed an interim deadline to submit information required under it.
China earlier this year threatened retaliation - including impounding European aircraft - if the EU punishes Chinese airlines for not complying with its emissions trading scheme.
The dispute between China and the EU froze Airbus purchase deals worth up to $14 billion, though China signed an agreement with Germany for 50 Airbus planes worth over $4 billion during Chancellor Angela Merkel's visit to Beijing last month.
The Senate bill gives the U.S. transportation secretary authority to stop U.S. airlines from complying with the EU law.
But new amendments agreed to during negotiations among lawmakers said the secretary could only do so if the EU trading scheme is amended, an international alternative is agreed to, or the United States implements its own program to address aviation emissions.
This increases pressure on the U.N. International Civil Aviation Organization (ICAO) to devise a global alternative to the EU law.
Connie Hedegaard, the European Climate Commissioner, said on Saturday that while the bill encourages the United States to work within the U.N. organization for a global deal on aviation emissions, she is skeptical that Washington will accept such a deal.
"It's not enough to say you want it, you have to work hard to get it done," she told Reuters on Saturday. "That means that the U.S. needs to change its approach in ICAO and show willingness to actually seal a meaningful global deal that will facilitate action."
Annie Petsonk, a lawyer for the Environmental Defense Fund, said the bill will put pressure on the U.N. body, which has been working on a global framework for years.
"Passage of the Thune bill amps up the pressure on ICAO to move swiftly to reach a global agreement on addressing aviation's global warming pollution," she said.
Oil prices rose above $60 due to Iran's call for oil production cut
Economic growth in the Euro-Zone is not at desired levels.
Director and Global Head of Islamic Finance at Standard & Poor's says that growing market for sukuk and new players mark 'significant interest' in Islamic finance.
The Ministry of Finance said that Denmark has written to China to "announce its intention to apply to be a founding member" of the AIIB.
Experts state that the crisis poses risks to the region, which is significant for oil production and exports in the world.
Federal Reserve removes word 'patient;' interest rate increase expected within months. Yellen says timing of rate rise 'not decided,' but will come anytime after April; holds current rates at 0 to 0.25 pct.
Many emerging-market currencies have fallen against the dollar in recent weeks
Anticipated Federal Reserve interest rate hikes making dollar strong against most emerging market currencies, Deputy Prime Minister Ali Babacan says.
European Statistical Agency says slight decline fuelled by drop in production of durable consumer goods.
EU will use all its foreign policy instruments to establish strategic energy partnerships with producing and transit countries.
Dollar strength and waning investor confidence are driving the lira lower
Greece has already received two bailouts totalling 240 billion euros but fellow euro zone member Ireland said last week that it would have to negotiate a third programme.
The Ukraine crisis has tested the loyalties of Bulgaria, a Balkan country with historical ties to Moscow and heavily dependent on Russian energy supplies.
Syria expels three United Nations aid workers hindering aid development in the country
Russia has overcome a "psychological barrier" and is ready to deepen its economic ties with China, Deputy Prime MinisterArkady Dvorkovich said
With Chancellor Angela Merkel's right-left coalition plus the opposition Greens, it was the biggest majority for any euro zone rescue package so far in the 631-seat chamber.