China has banned its airlines from entering the EU's carbon levies system on international flights.
The world's fastest growing aviation market has officially banned its airlines from taking part in the European Union's latest scheme to reduce carbon emissions, citing a violation of international rules. The new system, which will require all airlines entering the Eurozone to pay around 1% on total fuel costs, has drawn global criticism from Russia, the US and China, who claim it will impede ticket sales and will not help Europe's efforts to escape its swelling sovereign debt crisis.
If implemented, the new carbon levies could cost Chinese airlines as much as 800 million yuan ($127 million) in 2012, according to a China airline group. The US also estimates the new regulations will set airline companies back at least $3.1 billion between 2012 and 2020. However, Markus Ederer, EU ambassador to China, claims that some airlines would get permits for some emissions for free and would only add around 17.5 yuan ($2.8) to the ticket over all ticket price.
China Southern's new Airbus A380 Image: China Southern |
China Southern, Asia's largest passenger by numbers, currently services Amsterdam and Paris and hopes to start flights to London next year. Air China, the nation's largest international carrier, generated 11% of revenue in Europe last year, servicing London, Paris and Madrid.
The chief gripe of opposing countries is that flights to Europe will be charged for fuel spent outside of Europe, which they believe impinges on their sovereignty. The US and Japan have proposed a fairer, global scheme to improve on the EU's plan. However, other nations have reacted less kindly. India has ordered carriers not to give emissions data to the EU, while China has banned its carriers from subscribing to the new policies outright.
China, now the world's biggest energy consumer, has set emissions caps for seven of its largest cities and provinces, including Shanghai, Beijing and Guangdong, as part of its effort to cut carbon dioxide emissions by as much as 17% of GDP in its latest five year plan, which will come up for review in 2015.