China bans airlines from joining ETS
07.02.12
Chinese airlines have been banned from joining the EU's Emissions Trading Scheme (ETS), travelmole reports. The country’s authorities have also banned the airlines from increasing their fares or adding new charges for the scheme, which aims to cut emissions.
China’s airlines had already indicated that they would refuse to pay the tax, but payment has now been officially banned by the State. The move gives the EU a difficult decision about how to react to the ban, which could escalate into a trade war.
American and Canada have also voiced their opposition to the unilateral scheme. Airlines who refuse to pay for carbon credits face fines and could be banned from operating flights to EU airports. Budget airline Ryanair has added a €0.25 levy on its flights to pay for the costs of the scheme, although for long haul flights the cost would be considerably more.
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