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China prohibits airlines from joining EU ETS

ATWonline.com by Karen Walker 7 Feb.12

China has prohibited its airlines from participating in the EU Emission Trading Scheme (EU ETS), escalating the row over the new and controversial carbon emissions tax (ATW Daily News, Jan. 12).

According to a Reuters report Monday, the Chinese government’s State Council issued a statement on its website that said Chinese carriers were prohibited from participating in EU ETS without government approval, and they were also barred from using ETS as a reason to raise fares.

Assn. of Asia-Pacific Airlines DG Andrew Herdman told Reuters the ruling put Chinese carriers in a difficult position because they have to comply with EU ETS, or risk large fines, while also being told by their government that they must not comply.

“We’re now at the stage that it’s absolutely clear that a whole host of foreign governments are not going to allow the EU to do this,” Herdman said.

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