European greens took a hit this month when China retaliated against the EU’s carbon trading scheme for airlines by freezing purchases from several European aerospace companies. Now India is piling on. New Delhi is set to force Indian airlines to withhold carbon emissions details with the EU and to forbid the purchase of any of the carbon offset credits demanded by the new regulations, Reuters reports. In case the point wasn’t clear, one Indian official claimed that New Delhi was willing to follow China’s lead in putting Airbus orders on hold if the EU doesn’t back down. European companies like Airbus, which currently holds a 73 percent share of India’s commercial plane market, would take a serious hit if India made good on these claims.
With each passing day, Europe seems to be moving closer and closer to an all-out trade war. The carbon policy was an ill-considered boondoggle to begin with, but if it leads to a major trade war, it could be truly disastrous. China and India are two of the largest and fastest-growing markets in the world, whose combined populations total more than a third of the world population. The last thing a faltering Europe needs right now is a trade war with rising Asian powers, yet that’s exactly where their commitment to unworkable green policies is taking them.