Economy

'EU's scheme could blacken relations'

By Xin Dingding (China Daily)
Updated: 2011-06-08 14:32

SINGAPORE - If the European Union goes ahead with its plan to force other countries to join its carbon-trading scheme, it will affect friendly relations between Chinese airlines, European airlines and plane manufacturers, a senior official with China's top aviation industry guild said on Tuesday.

Chai Haibo, deputy secretary general of the China Air Transport Association, told China Daily that Chinese airlines felt "angry" about the EU's plan that all airlines flying to its member states be included in its Emissions Trading Scheme starting Jan 1 next year.

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The system compels polluters to buy permits for each ton of carbon dioxide they emit above a certain cap. It is estimated that Chinese airlines will face a bill of 800 million yuan ($123 million) in 2012, which will more than triple in 2020, but the system has not made it clear yet where the money will go after being collected.

"Chinese airlines felt angry because, with an attitude of cooperation and common development, they have been supportive with Europe and forged a friendly relationship with European airlines, aircraft and aviation engine manufacturers all these years, but the EU suddenly came up with a plan that will hinder their development," he said.

China has bought a large number of Airbus planes, and to prepare for the arrival of the Airbus A380, Chinese airports opened their arms and revamped their infrastructure to welcome the arrivals of the jumbo jets.

"If the EU presses ahead with its plan, the friendly relations between Chinese airlines and European airlines and aircraft manufacturers will surely be affected. I would not call this a threat. This result will just come naturally," he said.

The association is ready to file a suit against the EU's plan at a future date.

Giovanni Bisignani, director-general and CEO of the International Air Transport Association, said on Tuesday that the association supports legal action taken by its carrier members against the carbon-trading scheme.

But he said that if China starts a court case now, any solution will come after 2012, which will be too late.

"What is more important is that governments be strongly against it and identify retaliation measures, though I am not in the position to suggest retaliation measures," he said.

"We have seen that what is the result of the Copenhagen meeting. The meeting was a disaster, a failure. I am convinced that as so many governments are strongly against it, it will also become a second Copenhagen failure," he said.