No EU carbon tax, vows China

Boston Star Monday 6th February, 2012

BEIJING - China's Monday asked its airlines not to pay a charge on carbon emissions imposed by the European Union (EU).

The authorities also asked the airlines not to hike freight or add other fees without government permission.

The Civil Aviation Administration of China (CAAC) said in a statement that it had been authorized by the Chinese cabinet to notify the ban to all domestic airlines, according to official Xinhua news service.

The ban comes weeks after the China Air Transport Association (CATA) said its members did not support the European Union's Emissions Trading Scheme (ETS) aimed at cutting carbon emissions at airports.

The ETS, in effect from January 1, has been put in place in the regional bloc to regulate emissions of greenhouse gases blamed for climate change.

It is estimated that around 4,000 airlines will pay the EU for their carbon emissions and will see the cost of air fares rise by between two and 12 euros per passenger.

But the statement said that China objects to the EU's decision to impose the scheme on non-EU airlines

It said China "has expressed its concerns over the scheme through various channels" and said the EU can find proper solutions to the issue with considerations of the overall bilateral relations

"China will consider adopting necessary measures to protect interests of Chinese individuals and companies, pending the development of the issue."

China claims that the plan could cost its airlines 95 million euros ($124m) in extra annual costs.

The scheme has been criticized by other countries like the US, India and Canada.