Chinese airlines 'won't pay EU carbon charge'

Jan 05, 2012
Photo illustration. Chinese airlines will not pay European Union carbon emissions charges that came into force on January 1, a national aviation industry group said Thursday.

Chinese airlines will not pay a charge on carbon emissions imposed by the European Union from January 1, a national aviation industry group said Thursday.

The cap-and-trade scheme, which has angered the US and Chinese governments and worldwide, came into force on Sunday after the European Union's highest court rejected a challenge brought by US carriers last month.

"China, of course, will not cooperate with the European Union on the ETS ()," said Chai Haibo, deputy secretary-general of the China Air Transport Association, which represents the country's airlines.

"The CATA, on behalf of Chinese airlines, is strongly against the EU's improper practice of unilaterally forcing international airlines into its ETS," Chai said from Beijing, where the group is based.

He said the Chinese government was considering "counter-measures" against the European Union, but gave no details.

Airlines that refuse to comply could be fined with the possibility of being denied the right to land in the 27-nation EU in extreme cases, according to the Europeans.

Beijing has said repeatedly that it opposes the new legislation, and on Thursday foreign ministry spokesman Hong Lei urged the EU authorities to "resolve this issue in a pragmatic and prudent manner."

An aircraft at Beijing International Airport in December 2011. Airlines that refuse to comply could be fined with the possibility of being denied the right to land in the 27-nation EU in extreme cases, according to the Europeans.

State media has previously warned the EU scheme "infringes on national sovereignty, violates international aviation treaties and will lead to a trade war" in the sector.

The EU launched the ETS in 2005 in a bid to reduce of power stations and industrial plants.

It decided to include airlines, responsible for three percent of , in the system in the absence of a global agreement to cap aviation emissions.

Under the EU scheme, airlines will have to pay for 15 percent of the polluting rights accorded to them in 2012, the figure then rising to 18 percent between 2013 and 2020.

China has said it fears its aviation sector will have to pay an additional 800 million yuan ($125 million) a year on flights originating or landing in Europe, and that the cost could be almost four times higher by 2020.

The tax would affect all of China's major airlines -- including Air China, China Eastern and China Southern, the CATA previously told AFP.

China reportedly blocked an order by Hong Kong Airlines for billions of euros' worth of Airbus aircraft earlier this year in retaliation for the EU move, underscoring the potential for a significant trade row.

The Airlines for America association grudgingly indicated that its members would abide by the EU law, but "under protest" while pursuing legal options.

Chai said that Chinese airlines will not pass any additional costs to passengers for now, since they are not participating in the scheme.

"We're not cooperating with them (EU countries), how could we charge customers such fees?" he said.

China Southern Airlines, one of the nation's biggest airlines, declined to comment Thursday.

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User comments : 8

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Squirrel
3.3 / 5 (6) Jan 05, 2012
If the EU cannot create a proper currency, why should any foreign organization takes its "cap-and-trade scheme" however well intended with any seriousness?
Physmet
2.8 / 5 (5) Jan 05, 2012
EU can threaten to deny landing, but the reality is that their countries would be severely hurt if their tourism dropped off. So, they'll never be able to enforce this.
Xbw
2.2 / 5 (13) Jan 05, 2012
I don't blame China. Paying a "pollution tax" is silly. It's just a scheme for the governments of Europe to make more money. You think they are going to plant a tree with that money? No they are going to line their pockets. Don't get me wrong, I'm all for helping the environment but taxing people to death does not solve anything. It just gives more money to the fakes who pretend to protect the environment.
PinkElephant
4.2 / 5 (9) Jan 05, 2012
I'm all for helping the environment but taxing people to death does not solve anything.
Taxing pollution makes more-polluting businesses less economically competitive, thereby promoting less-polluting alternatives. If you are "all for helping the environment", then you shouldn't object to trying to reduce pollution.

As far as economic arguments go, you ought to realize that we all (including generations yet unborn) pay the price for pollution, even while only the polluters directly benefit from it. IOW, they externalize their production costs onto you, quite without even bothering to think of asking your consent.

A properly functioning economy based on fundamental principles of just and fair trade, would not tolerate such externalization of costs. An economy that turns a blind eye to externalities, is a rigged and unsustainable joke.
Davecoolman
1.5 / 5 (11) Jan 05, 2012
The Chinese are taking the bankrupt EU pinheads on and I bet who will win! CAGW hoax is on it's last legs and so are the Economy's of the west.
Read Der Spegial and weep we are in for very tough times and bankrupt Carbon schemes will speed up the process.

PONZI PLANET - Jan 2012

The Danger Debt Poses to the Western World

Countries around the world, particularly in the West, are hopelessly in the red, with debt rising every day. Even worse, politicians seem paralyzed, unable -- or unwilling -- to do anything about it. It is a global disaster that threatens the immediate future.

Secretly, they all know that a Ponzi scheme has never turned out well.

http://www.spiege...%3dnlint
Davecoolman
1.5 / 5 (8) Jan 06, 2012
All good comment and I couldn't agree more.

If the EU cannot create a proper currency, why should any foreign organization takes its "cap-and-trade scheme" however well intended with any seriousness?

EU can threaten to deny landing, but the reality is that their countries would be severely hurt if their tourism dropped off. So, they'll never be able to enforce this.

I don't blame China. Paying a "pollution tax" is silly. It's just a scheme for the governments of Europe to make more money. You think they are going to plant a tree with that money? No they are going to line their pockets. Don't get me wrong, I'm all for helping the environment but taxing people to death does not solve anything. It just gives more money to the fakes who pretend to protect the environment.

See one great MEP take on the EU demagogs

Nigel Farage: Wake up EU to the misery you're inflicting on millions!
The Game is Up, The EURO is Finished! Spain & Portugal Nigel Farage Speaks Out!

http://www.youtube.
Davecoolman
1.6 / 5 (7) Jan 06, 2012
Sorry bad link above. The short videos tell a lot about the workings of the EU and it isn't good!

British EU MEP Farage: What gives you the right to dictate to the Greek and Italian people?

Farage eXposes Euro-Scam 2011 - New World Order Bankers Don't Care -- Are You Listening America?

Nigel Farage: Wake up EU to the misery you're inflicting on millions!

The Game is Up, The EURO is Finished! Spain & Portugal Nigel Farage Speaks Out

Nigel Farage the sane voice from the EU.

Nigel Farage touches quite a few nerves in the EU Parliament.

http://www.youtub...b6QRLRJU
villarose
1 / 5 (2) Jan 06, 2012
This is how to beg for money in a noble way......China got Trillion.

It's a matter of time when all BIG companies in EU are under Chinese ownership....sell Ferrari to the Chinese!!!!!