CHINA’S BIG airlines are refusing to pay a new European Union charge on carbon emissions and the Beijing government wants talks to resolve the issue – which could see Chinese carriers banned from European airports.
The Emissions Trading Scheme has caused outrage across the aviation industry. Governments in China, the US, India and Canada have criticised the “cap-and-trade” plan. The scheme came into effect on January 1st after an attempt by US airlines to challenge the ruling was thrown out last month by the European Court of Justice.
“China opposes the European Union’s unilateral legislation. China has expressed to the EU our deep concern and opposition many times on a bilateral level,” Foreign Ministry spokesman Hong Lei told a news conference.
“We hope the EU can take careful precautions with a cautious and practical attitude, and regarding those aspects involving China, appropriately discuss and handle this matter,” he said.
The carbon trading scheme, a key element in the EU’s efforts to combat climate change, was first introduced in 2005.
The row could turn into a trade war, the Xinhua news agency said, and China has threatened retaliation. The country has much more muscle these days due to the numbers of Chinese tourists to Europe. Disruptions to struggling tourism industries in Europe would not be politically difficult in China.
The US has raised the prospect of retaliation. A draft law in the US Congress proposes to make it illegal to comply with the EU law.
Airlines which do not comply face fines of €100 per tonne of carbon dioxide emitted for which they have not surrendered allowances. Airlines which do not sign up for the scheme face being banned from EU airports.
The Chinese airline trade association CATA, which represents China’s four big airlines – flag-carrier Air China, China Southern, China Eastern and Hainan Airlines – reckons taking part in the scheme would cost Chinese airlines €96 million in the first year and more than triple that by 2020.
The EU has said it is open to discussing the issue and would accept equivalent measures such as other forms of carbon reduction. “It has to be something similar,” Isaac Valero-Ladron, EU spokesman for climate action, said. “It’s a measure which a country feels most comfortable with.”