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China may pay 800 million yuan for EU carbon tax

By Tu Lufang (Beijing Daily)

16:12, December 15, 2011

Edited and translated by People's Daily Online

At the recently ended Durban climate change talks, E.U. climate negotiators reiterated that the European Union will not change its decision to levy a carbon tax on international flights to and from its member countries starting 2012.

Chai Haibo, assistant secretary general of the China Air Transport Association (CATA), said in response that China will file a lawsuit in Germany within this month over the European Union's decision. As the carbon tax will not come into force until early 2013, the Chinese government and airlines still have some time to negotiate with the European Union.

The European Union will start imposing a carbon tax on flights to and from its member countries on Jan. 1, 2012. The CATA estimated that the tax will cost Chinese airlines 800 million yuan in 2012. Previously, the CATA had reached a consensus with Air China, China Eastern Airlines, China Southern Airlines, and Hainan Airlines to jointly sue the European Union. Throughout the lawsuit, the European Union will be unable to levy the carbon tax on the four airlines.

According to the European Union's carbon emissions scheme, the cap on the total quantity of aviation emissions for 2014 will be lowered to 95 percent of the average of aviation emissions from 2004 to 2006. Established airlines in the United States and European Union are slow in expanding their fleets which include many old aircrafts, and can thus reduce their carbon emissions easily.

In contrast, Chinese airlines have been in a period of rapid expansion since 2006, and their fleets mainly consist of relatively new aircraft. At present, domestic airlines seek to increase their passenger capacity to meet growing demand for international travel, so it would be impossible for them to further cut their already small amounts of carbon emissions in 2006. Overall, the European Union’s carbon tax will cost Chinese airlines heavily.

The European Union's decision to levy the carbon tax has also received strong opposition from the United States, Russia, India, Brazil, South Africa, Japan and other countries.

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wende at 2011-12-1671.251.41.*
China can reciprocate the treatment on EU. Next, I don"t understand why using older planes emit less carbon. It does not make sense as newer planes are more improved and theoretically emit less carbon. Could this be a trick to fool China? The rule smells fishy to me. Probably China is the only country subjected to this rule in practice. The West is looking for every loophole to weaken China in all spheres (economic, political, diplomatic and military, cultural etc)

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