Bans State-Run Airlines From Taking Part In Carbon Tax
China has imposed an outright ban on its flagged airlines from
taking part in the EU's Emissions Trading Scheme, saying it is in
violation of United Nations Framework Convention on Climate Change
and international civil aviation regulations. The country's
airlines are also prevented from using the scheme as a reason to
boost ticket prices.
A report appearing in Business Week indicated that the
EU is hoping for a negotiated resolution to the issue, as does the
the China Air Transport Association. "I believe all sides can
negotiate and find a solution," CATA vice president Chai Haibo said
at a news conference Monday, adding that he could not "imagine" the
EU grounding Chinese flights.
The U.S., India, and other nations have discussed sanctions
against the EU for imposing the tax, and U.S. lawmakers have passed
legislation barring U.S. airlines from participating in the
program. The Chinese airline group has begun work on mounting a
legal challenge to the EU-ETS in Germany which will include China's
three largest state-controlled carriers.
The EU Court of Justice has consistently held that the Union is
within its rights to impose the tax on all airliners operating in
any way in European Union airspace.