China prohibits its carriers from paying ETS- West v/s East?

Neelam Mathews

Feb 6, 2012

Asia’s frustration with the ETS is clear as China bans its airlines not to pay a charge on carbon emissions imposed by the Europe Union (EU), and neither to hike freights nor to add other fees accordingly without government permission, the Civil Aviation Administration of China (CAAC) has said.

The CAAC said in a statement that it had been authorized by the State Council, China’s Cabinet, to notify the ban to all domestic airlines.

The statement said the EU’s decision to charge flights into and out of EU airports for carbon emission “runs contrary to relevant principles of the United Nations Framework Convention on Climate Change and the international civil aviation regulations.”

It is estimated that around 4,000 airlines will pay the EU for their carbon emissions.

“China objects to the EU’s decision to impose the scheme on non-EU airlines, and has expressed its concerns over the scheme through various channels,” the statement said. “China will consider adopting necessary measures to protect interests of Chinese individuals and companies, pending the development of the issue.”

Now one shall have to wait and see what India does on this issue considering it took the initiative to protest the ETS.