China’s airlines will not pay EU carbon tax

“China will not cooperate with the European Union on the ETS”

China’s airlines are refusing to pay any of the ETS carbon taxes being demanded under the European Union’s Emissions Trading Scheme. However, other Asia Pacific airlines are likely to pass the extra costs on to passengers. “China will not cooperate with the European Union on the ETS, so Chinese airlines will not impose surcharges on customers relating to the emissions tax,” was the essence of a blunt message from Cai Haibo, deputy secretary-general of the China Air Transport Association, to Reuters in a phone interview. The nation’s four major airlines – Air China, China Southern Airlines, China Eastern Airlines and Hainan Airlines – are represented by the association.
What the European Commission will do if airlines don’t pay is unclear, but it is reserving the right to ban an aircraft operator from flying to Europe, something that could result in a trade war.
Reuters / CNBC
[pictured: China Southern; courtesy Skyteam]