06 Feb, 2012
The Chinese government has ‘banned’ its airlines from complying with an EU tax which is aimed at reducing carbon emissions.
Airlines were brought under the Emissions Trading Scheme (ETS) on January 1st; this scheme charges a tax on flights calculated according to their carbon emissions.
However, the tax has not been popular and has been criticised by several countries including India, the US, Canada and China.
Chai Haibo of the China Air Transport Association confirmed earlier in the year that its members would not comply with the ETS, saying: “The China Air Transport Association (CATA), on behalf of Chinese airlines, is strongly against the EU’s improper practice of unilaterally forcing international airlines into its ETS.”
It is thought that the ETS could potentially cost Chinese airlines an extra $124m (£79m) in costs per year.
Despite the fact that non-complying airlines are liable for a fine and could be prohibited from flying into the region, China has warned that it could consider taking retaliatory measures against the scheme.