Tensions over EU Emissions Levy Reach New Heights as China Tells Airlines not to Comply

The Chinese government has barred the country’s airlines from participating in Brussels’ controversial plan to place a levy on foreign airlines for the emissions they use on incoming and outgoing flights. With China also set to meet with other opponents of the aviation emissions levy - including India, Russia, and the US - later this month to discuss a plan of action, tensions over the EU scheme are expected to escalate much further.

In banning its airlines from complying with the EU’s Emissions Trading System (EU ETS), the Civil Aviation Administration of China underscored that “China objects to the EU’s decision to impose the scheme on non-EU airlines, and has expressed its concerns over the scheme through various channels.”

According to Xinhua, the country’s official news agency, airlines cannot join the ETS or use it as a justification for raising ticket prices without government approval.

The 6 February announcement also argues that the inclusion of aviation under the bloc’s Emissions Trading System is in breach of UN Framework Convention on Climate Change (UNFCCC) and International Civil Aviation Organization (ICAO) principles.

The European Court of Justice, Europe’s top court, ruled in December that the inclusion of aviation under the ETS is fully compatible with international law. Shortly thereafter, China’s four biggest airlines said they would not comply. This latest move by Beijing, however, raises the level of discourse to the capitals.

China has the world’s fastest growing aviation industry, with many direct connections with European cities.

Aviation levy opponents want “global” solution

China - along with Russia India, the US, and others - say Europe’s unilateral approach will be less effective than a global solution. The Montreal-based ICAO, the UN body responsible for civil aviation, has said that it plans to form a global emissions system.

China, India, Russia, and the US, along with various other countries that oppose including aviation in the scheme, are set to meet in Moscow on 21 February to discuss a plan of action in response to the EU scheme, Reuters confirmed on Monday, citing unnamed EU and Indian sources. Nearly 30 countries are expected to attend, according to the news wire.

The US House of Representatives in October 2011 passed a similar bill that would make it illegal for US airlines to comply with the scheme. However, the bill still requires Senate and presidential approval before it can become law.