Chinese Airlines Join U.S. in Opposition to EU Cap-and-Trade Program
05/11/2011
SustainableBusiness.com News
China's commercial airlines - like their U.S. rivals - are opposed to joining the European Union's cap-and-trade program, called the Emissions Trading Scheme (ETS), in 2012.
Beginning next year, the EU will require all airlines flying in and out of Europe to participate in the region's cap-and-trade program for reducing greenhouse gas emissions. Doing so is expected to increase industry-wide costs by $1.4-$2 billion and lead to higher ticket prices.
The China Air Transport Association (CATA) says it's opposed to the EU imposing higher costs on airlines. The Association says it will ask the Beijing government to propose countermeasures against European airlines, unless the European Commission adjusts its plan.
Chinese government officials have already stated their objections to the European commission.
The Air Transport Association of America, which represents U.S. airlines, is currently challenging the European plan in EU courts.
EU officials want to maintain an even playing field for their domestic airlines. And, they argue that years of UN negotiations have been unsuccessful in curbing emissions from aviation.
One of Europe's largest airlines, Lufthansa, voluntarily began trading carbon emissions last month.