China says its airlines won’t pay carbon emissions charges

PanARMENIAN.Net - China said on Monday, Feb 6, it has banned its airlines from complying with an EU scheme to impose charges on carbon emissions opposed by more than two dozen countries including India, Russia and the United States, AFP reported.

Beijing has said repeatedly that it opposes the new European Union plan, which was imposed with effect from Jan 1, and which Chinese state media have warned would lead to a "trade war" in the sector.

A statement on the website of China's State Council, or cabinet, also said airlines were barred from using the EU's emissions trading scheme (ETS) to increase fares or other passenger charges.

"The Civil Aviation Administration of China recently issued a directive to Chinese airlines that without the approval of relevant government departments, all transport airlines in China are prohibited from participating in the EU ETS," said the statement.

China has said it fears its aviation sector will have to pay an additional 800 million yuan ($125 million) a year on flights originating or landing in Europe, and that the cost could be almost four times higher by 2020.

The European Commission argues that the cost for airlines is manageable, estimating that the scheme could prompt carriers to add between 4.0 and 24 euros ($32) to the price of a two-way long-haul flight.

Nonetheless, some airlines have announced new ticket fees since the EU's rules came into force.

The European Union launched the ETS in 2005 in a bid to reduce carbon emissions of power stations and industrial plants.