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China bans its airlines from paying EU's carbon tax

“India should allow only 2008 participants in new sale,” he said at a press conference on Monday.

People wait in line during a job fair for Home Depot at the WorkSource Oregon Thursday, 2 February, 2012
People wait in line during a job fair for Home Depot at the WorkSource Oregon Thursday, 2 February, 2012

China geared up for a showdown with European Union by barring its airlines to pay EU’s carbon emissions tax.

China’s airlines are not allowed to pay a charge on carbon emissions imposed by the EU without government permission, the Civil Aviation Administration of China (CAAC) said.

In a statement, the CAAC said it had been authorised by China’s Cabinet to notify the ban to all domestic airlines.

The statement said the EU’s decision to charge flights into and out of EU airports for carbon emission “runs contrary to relevant principles of the United Nations Framework Convention on Climate Change and the international civil aviation regulations.”

The EU’s Emissions Trading Scheme, which has taken effect on January 1, is one of the widest-reaching measures adopted by any country or regional bloc to regulate emissions of greenhouse gases blamed for climate change.

It is estimated that around 4,000 airlines will pay the EU for their carbon emissions.

“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,” the statement said.

“China will consider adopting necessary measures to protect interests of Chinese individuals and companies, pending the development of the issue,” it said.

China hopes the EU can find proper solutions to the issue with considerations of the overall bilateral relations, the two sides’ combined efforts to combat climate change as well as the sustainable development of the international airline industry, state run Xinhua quoted the statement as saying.