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China opposes EU's emission trading scheme

THE European Union should cancel or suspend a carbon cap system on airlines or the EU airlines may face stricter limits by the Chinese government and the aviation relationship between the two regions may be hurt, the China Air Transport Association said in a recent talk with the European Climate Commission.

The association that represents 33 Chinese carriers, including Air China, China Southern Airlines and China Eastern Airlines, sent a delegation to Brussels recently to negotiate with the commission about its move to include global airlines in its Emission Trading System starting next year, it said today.

The association said the EU should give up the system or suspend it until 2020, hinting that if the EU refuses to cancel or delay the scheme, the association might ask the Chinese government to impose strict limits on EU airlines flying to China and the cooperation between Chinese and EU airlines and airplane makers will suffer.

"European airlines will be charged twice if the Chinese government decides to include EU airlines into the Chinese Emission Trading System, so I think the EU should give up or delay the system," said Christoph Franz, chief executive officer of German flagship carrier Lufthansa.

The EU approved a proposal in 2008 to include the aviation industry in the ETS after emissions from the sector doubled since 1990, and the scheme will start next year.

Under the scheme, all flights departing or landing in the EU airports will start emission trading, which means airlines that exceed their carbon emission limit will have to buy spare permits from more efficient businesses or face a fine. The scheme is expected to cost Chinese airlines an estimated 17.6 billion yuan by 2020.

Luo Chaogeng, head of the Chinese delegation, said the association and Chinese airlines don't accept the EU's Emission Trading System as it violates the international law and hinders the aviation development in developing countries.

"It should not be a unilateral decision… The China Air Transport Association is willing to hold talks to help map out a global solution," the suggestion said.



 

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