China's four major airlines – national flag-carrier Air China, China Eastern Airlines, China southern Airlines and Hainan Airlines – are represented by the CATA Photo: Doug Kanter/Bloomberg
Beijing said it has deep concerns over the EU’s Emissions Trading Scheme (ETS), which came into force on New year’s Day and demands all airlines pay a green duty to offset carbon emissions.
“China opposes the European Union’s unilateral legislation. China has expressed to the EU our deep concern and opposition many times on a bilateral level,” Chinese Foreign Ministry spokesman Hong Lei said. Mr Hong urged Brussels to hold urgent talks with Beijing over the controversial carbon allowance scheme, which has also met strong opposition from other countries.
The China Air Transport Association was more militant in its response – declaring its members would not co-operate with the ETS and refuse to pay the added tax. It also said it would seek legal action and try and attempt to form an international alliance to scrap the scheme.
“The CATA, on behalf of Chinese airlines, is strongly against the EU’s improper practice of unilaterally forcing international airlines into its ETS,” CATA spokesman Cai Haibo said.
“If governments like the US, China and Russia can launch strong and forceful retaliatory measures, this will form enormous pressure and we hope could make the EU to change its mind.”
China’s four major airlines – national flag-carrier Air China, China Eastern Airlines, China southern Airlines and Hainan Airlines – are represented by the CATA.
China is likely to be able to pull unusually heavy punches in the dispute as its air carriers ferry hundreds of thousand of passenger from Asia into Europe’s troubled markets, including the tourist sector. The ETS requires airlines flying to or from Europe to obtain certificates for carbon dioxide emissions. Most airlines will receive free credits to cover most flights this year. But in the future they must buy or trade for credits to cover the full cost of the levy.
The European Commission has assessed the impact on air fares at between two to 12 euros per passenger but the Chinese airlines’ association said if its members agreed to pay the charge, it will cost them £79m in the first year alone with estimated costs tripling by 2020.
Chinese airlines could be forced to pay fines of 100 euros (£83) for each tonne of carbon dioxide emitted if they refuse to pay the duty.
Brussels has the power to ban airlines if they continue to flout the law. The US lost its attempt to have the new airline tax blocked by the European Court of Justice last month. Canada, Russia and India have also criticised the plan – but China is the first to declare it will refuse to co-operate.
The ETS was first introduced in 2005 as part of a set of green initiatives launched to tackle climate change. Liu Ping from the China Aviation Science Academy, said the EU was heaping more pain onto the already financially troubled global airline industry.
“This is a bad idea lacking justice. The aviation industry is going through a hard time all over the world. This bill has worsened the situation,” he told the Daily Telegraph.
“The EU is standing alone against the world and against the global air transport industry,” he added.
China warned last year of a trade war if the ETS came into effect.
According to reports, a draft law currently in the U.S. Congress proposes to make it illegal to comply with the EU legislation and Washington has also warned of possible retaliatory measures against the levy.
A claim the scheme infringes on national sovereignty or violates aviation treaties was dismissed last month by the European Court of Justice in Luxembourg.
The International Air Transport Association says the EU should negotiate through the International Civil Aviation Organization to reach a global agreement on the issue.
source: http://www.telegraph.co.uk
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