Carbon row: India may tax European carriers

India, China and Russia may impose "overflying charges" on European carriers as a retaliatory measure if the European Union (EU) does not withdraw the controversial carbon tax being levied on airlines flying to Europe.

The retaliatory move, if implemented, has the potential of grounding the financially strained European carriers. Non-EU nations opposed to the tax will meet on February 21 in Moscow.

Civil aviation minister Ajit Singh on Friday told the EU commissioner for climate action Connie Hedegaard that the EU airspace emissions fees "offended Indian sovereignty."

At a meeting last week in Montreal, which was attended by 27-nations including the US, the consensus was to take a strong stance against the emission fees.

The EU Emissions Trading Scheme (ETS) could cost domestic carriers billions of dollars in emission fees.