7-Feb-2012 1:00 PM

China bans airlines from paying EU carbon tax

CAAC stated (06-Feb-2012) it has been authorised by the State Council to ban domestic airlines from taking part in the European Union emissions trading scheme (EU ETS), saying the programme violates international law. Chinese airlines will not be allowed to pay the charges, raise fares or add any fees without government permission. CAAC said the EU's decision to charge services to/from EU airports for carbon emissions "runs contrary to relevant principles of the United Nations Framework Convention on Climate Change and the international civil aviation regulations." CAAC continued: "China objects to the EU's decision to impose the scheme on non-EU airlines, and has expressed its concerns over the scheme through various channels. China will consider adopting necessary measures to protect interests of Chinese individuals and companies, pending the development of the issue". Meanwhile, China Air Transport Association VP Chai Haibo, as quoted by Xinhua, commented: "I believe all sides will negotiate again and find a solution. I can’t imagine that the worst case, such as the EU grounding Chinese flights, could happen.” [more - Original PR - Chinese]

CAAC: “China hopes Europe will act in the light of the broader issues of responding to global climate change, the sustainable development of international aviation and Sino-European ties, strengthening communication and coordination to find an appropriate solution acceptable to both sides,” Company Statement, 06-Feb-2011.

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