China’s airlines refuse to pay carbon costs imposed by EU

China’s airlines will not pay any carbon costs which will be imposed under the European Union’s Emissions Trading Scheme (ETS). “China will not cooperate with the European Union on the ETS, so Chinese airlines will not impose surcharges on customers relating to the emissions tax,” said Cai Haibo, deputy secretary-general of the China Air Transport Association (CATA). CATA represents China’s flag carrier, Air China Ltd., China Southern Airlines, China Eastern Airlines and Hainan Airlines. According to the EU’s Emissions Trading Scheme, a fine of €100 (US$130.3) will be imposed for every ton of carbon dioxide emitted by aircraft flying over its territory. The Commission reserves the right to ban aircraft operators who flout the EU law. Cai said that the Chinese airlines will consider legal action against the EU. Australia’s Quantas Airways is also considering legal action and the U.S. has warned of possible retaliation. Other airlines in Asia and Europe will be passing on the extra cost to its passengers. (January 4, 2012)