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May 10, 2011

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EU warned about carbon cap

THE European Union should cancel or suspend a carbon cap system on airlines, the China Air Transport Association said, as it warned it will strongly recommend to the Chinese government to impose stricter limits on EU airlines if the bloc fails to do so.

The association, representing 33 Chinese airlines including Air China, China Southern Airlines and China Eastern Airlines, sent a delegation to Brussels recently to negotiate with the European Climate Commission about its move to include global airlines into the Emission Trading System from next year.

In the latest talks the association suggested the EU should not implement the system on global airlines or to suspend it until 2020. If the EU refuses to cancel or delay the scheme, the association will strongly ask the Chinese government to carry out stricter limits on EU airlines when they depart or land at Chinese airports. It warned that the cooperation between the two regions' airlines and aircraft makers will be damaged if the EU refuses to budge on this issue.

"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 or EU airlines can't compete with other airlines if they were to incur extra cost of millions of euros," said Christoph Franz, CEO of Germany's Lufthansa.

The EU approved a proposal in 2008 to include the aviation industry in the ETS scheme, which will start in 2012, after emissions from the sector doubled since 1990.

Under the scheme, all flights departing or landing at EU airports will start emission trading, which means airlines that exceed their carbon dioxide 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 (US$2.7 billion) by 2020.

"It should not be a unilateral decision to improve energy efficiency and cut emissions of global airlines, and the China Air Transport Association is willing to negotiate to map out a global solution," CATA said.




 

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