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Indiaexportnews.com

CATA tells airlines to refuse EU carbon tax

  19.12.2011    

The China Air Transport Association (CATA) has urged member airlines not to cooperate with the European Union's carbon tax collection scheme on flights entering in Europe starting January 1, according to the Shipping Gazette. 
CATA secretary general Wei Zhenzhong said he has asked Chinese airlines to refuse to participate, reports China News Service. Mr Wei also asked airlines not to submit to CO2 monitoring or consider preferential treatment schemes.
From the first of the year all airlines landing in Europe will be subject to a carbon cap and will be obliged to cover surplus emissions through the purchase of credits on the EU's Emissions Trading Scheme (ETS).
The China Air Transport Association says the scheme will cost Chinese airlines CNY800 million (US$123 million) in the first year and triple that by 2020.
United States airlines and industry associations also oppose the EU scheme, saying it violates the 1944 Chicago Convention on International Civil Aviation, World Trade Organisation rules and infringes national sovereignty because it taxes carbon emissions beyond EU airspace.
Mr Wei advised Beijing to consider retaliatory measures. He said CATA was currently choosing the most appropriate time to take formal legal action against Europe, but admitted the prospects of success were "not optimistic" after preliminary opinions from the European Court of Justice in October declared the scheme to be within the law.


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