China bars airlines from paying EU's carbon tax
China has barred domestic airlines from paying carbon emission taxes imposed by the European Union on flights to and from Europe and says they can't charge customers extra because of the EU plan.
The State Council said yesterday that Chinese airlines need approval if they want to join the emissions plan, which the government has denounced as an unfair trade barrier.
"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," an unnamed official from the Civil Aviation Administration of China told Xinhua news agency.
"The Chinese side will also consider taking necessary measures to protect the interests of the Chinese public and businesses based on developments," the official said.
From January 1, the EU began charging airlines using EU airports for carbon emissions based on its Emission Trading Scheme (ETS).
The money will not be collected until April 30 next year, however, and China has added its voice to a growing global protest ahead of the date.
Chai Haibo, deputy secretary-general of the China Air Transport Association, which represents China's airlines, said yesterday: "It is high time for the EU to rethink its carbon tax scheme and respond in a positive manner."
The European Union ambassador to Beijing, Markus Ederer, defended the charges as consistent with Europe's efforts to be a "green leader" in curbing climate change and said they treated European and foreign carriers equally.
Under the scheme, it is estimated that around 4,000 airlines will pay the EU for pollution permits, rendering the tax one of the widest-reaching emission-regulative measures adopted by any country or regional bloc.
However, the move has angered many governments.
"China objects to the EU's decision to impose the scheme on non-EU airlines, and has expressed its concerns through various channels," the civil aviation administration said.
The ETS "runs contrary to relevant principles of the United Nations Framework Convention on Climate Change and the international civil aviation regulations," it said.
The hardening of the dispute, which comes a week before Chinese and EU leaders hold a summit, could subject Chinese airlines to fines or prohibitions on the use of EU airports.
"The Chinese government's move against the EU system is fair and reasonable because the EU has violated the International Civil Aviation Covenant to force other countries to accept its own rule," the China Air Transport Association said.
"Air China has always opposed the EU's carbon emission system, which is unreasonable and illegal," said Lu Lingfei, deputy director of the airline's planning and development department.
Under the EU plan, airlines flying to or from Europe have to buy permits costing 15 percent of the carbon emissions they generate, with large fines for noncompliance.
The plan will only exempt airplanes that have an annual carbon emission of less than 10,000 tons.
A total of 33 Chinese airlines, including Air China, China Southern and China Eastern, will be affected by the tax.
If accepted, it would cost Chinese airlines an estimated 743 million yuan (US$117.91 million) this year, or about 300 yuan for each ticket for flights between China and Europe, Chai said.
"I think there should be some political solution reached before the standoff goes global. I can hardly imagine the worst scenario when all countries come up with counter-measures. What will the EU do at that time? Will they really detain flights from other countries at its airports?" he said.
About 26 countries, including China, the United States and Canada have protested the plan but, in December, the European Court of Justice dismissed arguments against the carbon emissions tax from US airlines.
The International Air Transport Association has criticized the charges as "market distorting."
It says the EU should negotiate through the International Civil Aviation Organization to reach a global agreement.
The State Council said yesterday that Chinese airlines need approval if they want to join the emissions plan, which the government has denounced as an unfair trade barrier.
"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," an unnamed official from the Civil Aviation Administration of China told Xinhua news agency.
"The Chinese side will also consider taking necessary measures to protect the interests of the Chinese public and businesses based on developments," the official said.
From January 1, the EU began charging airlines using EU airports for carbon emissions based on its Emission Trading Scheme (ETS).
The money will not be collected until April 30 next year, however, and China has added its voice to a growing global protest ahead of the date.
Chai Haibo, deputy secretary-general of the China Air Transport Association, which represents China's airlines, said yesterday: "It is high time for the EU to rethink its carbon tax scheme and respond in a positive manner."
The European Union ambassador to Beijing, Markus Ederer, defended the charges as consistent with Europe's efforts to be a "green leader" in curbing climate change and said they treated European and foreign carriers equally.
Under the scheme, it is estimated that around 4,000 airlines will pay the EU for pollution permits, rendering the tax one of the widest-reaching emission-regulative measures adopted by any country or regional bloc.
However, the move has angered many governments.
"China objects to the EU's decision to impose the scheme on non-EU airlines, and has expressed its concerns through various channels," the civil aviation administration said.
The ETS "runs contrary to relevant principles of the United Nations Framework Convention on Climate Change and the international civil aviation regulations," it said.
The hardening of the dispute, which comes a week before Chinese and EU leaders hold a summit, could subject Chinese airlines to fines or prohibitions on the use of EU airports.
"The Chinese government's move against the EU system is fair and reasonable because the EU has violated the International Civil Aviation Covenant to force other countries to accept its own rule," the China Air Transport Association said.
"Air China has always opposed the EU's carbon emission system, which is unreasonable and illegal," said Lu Lingfei, deputy director of the airline's planning and development department.
Under the EU plan, airlines flying to or from Europe have to buy permits costing 15 percent of the carbon emissions they generate, with large fines for noncompliance.
The plan will only exempt airplanes that have an annual carbon emission of less than 10,000 tons.
A total of 33 Chinese airlines, including Air China, China Southern and China Eastern, will be affected by the tax.
If accepted, it would cost Chinese airlines an estimated 743 million yuan (US$117.91 million) this year, or about 300 yuan for each ticket for flights between China and Europe, Chai said.
"I think there should be some political solution reached before the standoff goes global. I can hardly imagine the worst scenario when all countries come up with counter-measures. What will the EU do at that time? Will they really detain flights from other countries at its airports?" he said.
About 26 countries, including China, the United States and Canada have protested the plan but, in December, the European Court of Justice dismissed arguments against the carbon emissions tax from US airlines.
The International Air Transport Association has criticized the charges as "market distorting."
It says the EU should negotiate through the International Civil Aviation Organization to reach a global agreement.
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