AIR fares are to be increased on all flights in Europe following the introduction of Tax Emission  policy by the European Union.

Also to be affected are flights emanating from other countries and heading towards any of the European Union member States.

Beginning this month, all airlines are required to hold emission rights in the form of CO2 certificates for flights to and from Europe.

In 2012, 82 per cent of the necessary certificates will be awarded to airlines free of charge, however, airlines will have to purchase another 15 per cent of the certificates, with three per cent being reserved for new airlines.

American Airlines and other US-based airlines have already kicked against the carbon dioxide emission tax being imposed on airlines. China’s carriers said they will not comply with the rules and India signalled it may attempt to scupper the EU plan.

According to the China Air Transport Association, (CATA), Europe should either scrap or delay its initiative to include flights to and from the region’s airports in its emissions trading system as of this year.

India may ask airlines to withhold emissions data, a Civil Aviation Ministry official said, a move that would undermine the first expansion of the EU carbon cap-and-trade programme beyond its borders.

The warnings by China and India follow a declaration adopted in November by the United Nations’ International Civil Aviation Organisation calling on the EU to exempt international aircraft operators from its curbs on carbon.

The non-binding ICAO statement was supported by 26 countries, including the U.S., Russia and Japan, who said that the expansion of the EU programme was inconsistent with international law.

The EU, which wants to lead the global fight against climate change, decided that aviation should become a part of its carbon programme after airline discharges in Europe doubled over two decades and international organisations failed to enact emission curbs.

EU law envisages penalties in case an operator does not comply with the rules and foresees the possibility of imposing an operating ban on an airline if it persistently fails to meet its legal obligations, said Isaac Valero-Ladron, Climate spokesman for the commission.