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People's Daily Online>>Foreign Affairs

China urges EU to rethink carbon tax

By Yang Jian (Shanghai Daily)

08:17, December 23, 2011

China opposes the European Union's carbon emissions tax on airlines, the Foreign Ministry said yesterday.

Spokesman Liu Weimin said many other countries also opposed the EU move, and China hoped the EU would act with caution and settle the issue in a positive and pragmatic way through consultation with relevant countries.

On Wednesday, the European Court of Justice in Luxembourg dismissed arguments by US airlines and allowed the EU to impose the tax on routes to or from Europe next year.

The system will inevitably increase the price of air tickets for international flights, a senior official with the China Air Transport Association said yesterday.

The move is expected to cost Chinese airlines an estimated 743 million yuan (US$117.39 million) in 2012, or about 300 yuan for each ticket for flights between China and Europe, said Chai Haibo, deputy secretary general of the association.

"Since the airlines have to undertake the huge extra charges, they will inevitably transfer some of the costs to consumers," Chai told Shanghai Daily.

The increase in the cost of tickets to Europe will cause price rises on other international routes, said Sun Lijian, deputy director of the School of Economics of Fudan University.

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