Yesterday, the European Union reminded the global airline community who’s in charge around here (metaphorically) by approving measures that will force airlines to participate in a carbon trading system (literally).   The industry, if you hadn’t guessed, is less than thrilled.   From The New York Times article on this very topic:

European justice ministers meeting in Luxembourg approved the greenhouse gas measures, which oblige airlines, regardless of nationality, that land or take off from an airport in the European Union to join the emissions trading system starting on Jan. 1, 2012.

The system, created in 2005, already includes heavy industries like cement makers and electricity generators in Europe.

European airlines reminded the EU that there’s not a whole lot of extra money lying around, while the United States is wondering if Europe is allowed to impose their rules on American carriers, or if it violates international aviation agreements.

The EU doesn’t seem to be backing down, but included in these measures were caveats to help start-up or emerging airlines gain footing.

New airlines or airlines growing at more than 18 percent annually would be eligible for a one-time limited supply of additional free permits. That measure would ensure that countries with initially very low but increasing mobility rates are not penalized by the scheme, European Union governments said in a statement.

This is seen to be helpful for poorer countries that are beginning to join the EU, but probably aren’t putting any smiles on Lufthansa’s face right about now.   There’s no way to be certain right now, but this new measure could cost airlines over four billion dollars annually.   Which, along with (potential) rising fuel costs, could really put the crimp on some businesses.

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