Chinese airlines to refuse to pay ETS costs
05.01.12
China's biggest airlines will not pay a new European Union tax aimed at cutting carbon emissions, the BBC reports that their trade body has said. The EU brought all airlines operating flights to or from member countries under its Emissions Trading Scheme (ETS) on January 1.
The tax has been criticised by China, India, the US and Canada. In December, the US lost its attempt to have the issue of the new airline tax blocked by the European Court of Justice. It has said that the charges violate climate change and aviation pacts, and has threatened retaliation.
Now Chai Haibo of the China Air Transport Association (CATA) has said that its members would not cooperate with the ETS. CATA represents airlines including Air China, China Southern Airlines, China Eastern Airlines and Hainan Airlines. Mr Haibo said: ‘CATA, on behalf of Chinese airlines, is strongly against the EU's improper practice of unilaterally forcing international airlines into its ETS.'
Last year, it was claimed the plan could cost Chinese airlines €95m (£79m) a year. China has warned that it may implement retaliatory measures against the levy. Airlines who do not comply with the ETS can be fined and even prohibited from flying into the region.
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