Thursday, January 5, 2012

China on Course for Trade War with Europe as its airlines refuse to pay controversial green tax aimed at cutting carbon emissions

A planned EU green tax to cut carbon emissions among the world's airlines was thrown into doubt today after China threatened not to cooperate with the plan.

The China Air Transport Association (CATA) said members would refuse to pay a new carbon allowance levy which came into effect on New Year's Day under the EU Emissions Trading Scheme (ETS).

It said it would try and force Brussels to scrap the initiative by forming a global alliance with other countries opposed to the duty.

Chai Haibo, deputy secretary-general for the CATA, said: 'The CATA, on behalf of Chinese airlines, is strongly against the EU's improper practice of unilaterally forcing international airlines into its ETS.

'If governments like the U.S., China and Russia launch strong and forceful retaliatory measures, this will form enormous pressure and we hope could make the EU change its mind.' Read More