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Indiaexportnews.com

Chinese and Indian airlines refuse to co-operate

  25.07.2012    

As Beijing remains firm in ongoing aircraft carbon emissions tax talks with the European Union, little progress is being made, reports China Daily, quoting an unidentified Chinese official.
Eight Chinese, and two Indian airlines, have refused to co-operate by supplying data upon which the tax is based. Non-compliant companies face fines and could be banned from EU airports. China has suggested reciprocity and has already put European Airbus long-haul plane orders on hold.
According to industry estimates, paying the EU carbon tax will cost China's aviation industry CNY790 million (US$124 million) this year and an estimated CNY3.7 billion in 2020.
The EU sent a delegation to Beijing for discussions on the Emissions Trading Scheme, a circuitous method of taxation, during the third round of the EU-China Strategic Dialogue in Beijing on July 10.
"The EU has an increasing sense of urgency as the window of opportunity narrows," the official said.
Under the tax, the EU began charging airlines that use EU airports for carbon emissions on January 1. The first payment is due on April 30, 2013.
More than 30 countries, including China, India, Russia and the US, oppose the tax and have expressed a desire for any resolution to be part of a global emissions framework under the UN's International Civil Aviation Organisation.
"We don't think a bilateral channel is an acceptable way to solve the issue," the official added.
The EU has countered with an equivalent exemption scheme, saying that if a country takes measures to reduce aircraft carbon emissions, the EU will exempt them from the tax, but nothing specific has been worked out.
Yang Fuqiang, a senior advisor on energy, environment and climate change at the Natural Resources Defence Council, said there are a few options that might be regarded as equivalent measures.
The measures could include cutting greenhouse gas emissions from the aviation sector by adopting energy-saving technology and using more advanced carriers or cleaner fuel.
Yet the "common but different responsibilities" approach is not accepted by the EU, Mr Yang said. "Possibilities could be explored in discussions, but the EU should put forward a fairer proposal."
China has its own carbon trading plan but it's not the right time to include the aviation sector in it, said officials and researchers.


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