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China says no to EU emissions trading scheme

By Wu Lejun (People's Daily)

16:32, February 08, 2012

Edited and translated by People's Daily Online

The Civil Aviation Administration of China announced on Feb. 6 that it has banned domestic airlines from participating in the European Union's emissions trading scheme (ETS), and from using the ETS to increase fares or add other fees.

No formal response from EU yet

The EU has not made a formal response to China's move.

According to an article published on on Feb. 6, Chinese airlines could be banned from flying to the EU from April 2013 if no agreement is reached. The author quoted a European Commission spokesman as saying that Chinese airlines have so far complied with the EU legislation, and have registered for the free carbon permits for which they are eligible.

The ETS, which took effect on Jan. 1, 2012, imposes a carbon tax on all international flights to and from EU countries. Airlines that do not comply with the ETS face fines of 100 euros for each ton of carbon dioxide exceeding the limit, and will be banned from flying to the EU.

ETS puts heavy burden on consumers

The so-called "free annual quotas" are eventually "wool from the same sheep." The EU repeatedly stressed to limit the increase in price of airline tickets, however, some of the taxes will be likely to pass on to passengers considering that airlines need to pay hundreds of millions of euros as extra expenditure.

In case of official collection of ETS, the amount to be paid by China civil aviation will be at least 800 million yuan in 2012, and 3 billion yuan in 2020, with a total amount expected to exceed 17.6 billion yuan in the future nine years.

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Leave your comment3 comments

  1. Name

PD User at 2012-02-09168.16.143.*
I agree, the environment is so overrated. Who needs clean air and oxygen?
wende at 2012-02-0971.255.83.*
China should seek alliance with other countries who are affected by the carbon tax and create a united front. Also, find out if some countries are exempted from this rule. I suspect some conspiracy because other countries have not been making noises.
romanov at 2012-02-0980.94.16.*
2012-2-8.A propo air transport,everyone"s sayining that chinese company to wait buy the polish airline LOT.Hahaha.LOT it eternal bankrupt dotation over every government,plane"s old.To drive with many international air lines withouth no any privilages in US.On inner market no exist.

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