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January 6, 2012

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China calls for talks on EU airlines rule

China reiterated its opposition yesterday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.

From Sunday, all airlines using EU airports have been brought into the EU's Emissions Trading Scheme (ETS), alongside EU utilities and heavy industry.

Any airlines that do not comply face fines of 100 euros (US$128) for each ton of carbon dioxide emitted for which they have not surrendered allowances. In the case of persistent offenders, the EU has the right to ban airlines from its airports.

"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," foreign ministry spokesman Hong Lei said.

"We hope the EU can take careful precautions with a cautious and practical attitude, and regarding those aspects involving China, appropriately discuss and handle this matter," Hong said at a regular briefing.

The EU's carbon trading scheme was launched in 2005 as one of the pillars of Europe's efforts to combat climate change.

Following a December ruling from Europe's highest court that inclusion of airlines in the ETS was valid, China's Xinhua news agency warned that a trade war may be looming.

The United States has also raised the prospect of retaliation, while a draft law in the US Congress proposes to make it illegal to comply with the EU law.





 

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