Europe flies into China flak on emission charges

Europe flies into China flak on emission charges

THE European Commission will continue charging airlines for their greenhouse gas emissions, despite an announcement from China that its carriers would be forbidden to pay without its permission.

The program, which began on January 1, requires airlines to account for all emissions on flights using European airports and represents Europe’s boldest move to protect the environment.

”We’re not backing down in our legislation,” said Isaac Valero-Ladron, a spokesman for the commission, the executive body of the European Union. ”We’ll apply this to companies operating in Europe.”

Europe says its system is less costly than portrayed and would speed up the adoption of greener technologies when air traffic, which represents about 3 per cent of global carbon dioxide emissions, is growing much faster than gains in efficiency.

On Monday, the Chinese air regulator effectively prohibited the country’s carriers from paying those charges or other fees or increasing ticket prices in response to Europe’s system without permission from the government.

The Chinese government said it was also considering unspecified measures to protect Chinese companies, which Europe can ill afford as it looks to China to help ease its debt crisis.

European countries also want access to China’s fast-growing economy, including free-spending Chinese tourists.

The intensifying dispute is another sign that European environmental regulations could lead to a trade war if governments start retaliating against carriers or products.

On Monday, Antony Tyler, the director-general of the International Air Transport Association, a body representing the global airline industry, warned that some airlines could face repercussions.

”We’re concerned also about retaliatory measures taken by non-EU governments against EU carriers,” Mr Tyler said. That was ”an increasingly possible outcome”, he said, since the United States, China, India and Russia could discuss such steps at a meeting on the policy in Moscow later this month.

The first payments by the airlines are due early next year, covering emissions from this year.