EU's carbon tax meets turbulence

Updated: 2011-12-23 07:23

By Xin Dingding and Ding Qingfen (China Daily)

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As Chinese airlines are set to open more routes to Europe, they may suffer more than their counterparts in developed countries.

Rao said that ticket prices for Air China flights to and from Europe will not rise, at least in the short term.

"We are disappointed with the court's decision," Chai Haibo, deputy secretary general of the China Air Transport Association (CATA), said.

"The association and some airlines have been in touch with lawyers and experts in Europe. But with this latest development we may need more time to study how to file the suit," he said.

The International Air Transport Association (IATA) on Thursday said that the EU court decision is a disappointment but not a surprise.

"The decision represents a European legal interpretation of EU emission trading scheme, however, the success of Europe's plans will depend on how non-European states view its legal and political acceptability. In this respect, there is growing global opposition," IATA said in a statement on Thursday.

Chai said that CATA had asked all its member airlines not to comply.

The association said the scheme will cost Chinese airlines about 800 million yuan ($123 million) in the first year and more than triple that by 2020.

"We asked Chinese airlines not to participate in the carbon trading, not to submit emission monitoring plans to the EU and not to negotiate with the EU about favorable terms," he said.

IATA believed that the EU move does not bring countries any closer to a much-needed global approach.

"What is needed is a global approach agreed through the International Civil Aviation Organization (ICAO)," said Tony Tyler, IATA's CEO.