The European Commission reignited the row over its controversial Emissions Trading Scheme (ETS) last week, by threatening 10 Chinese and Indian airlines with fines over their refusal to comply with the carbon-cutting scheme.
According to a New York Times report late last week, citing the EU’s Commissioner for Climate Action, Connie Hedegaard, eight Chinese face fines of up to EUR2.4 million (US$3.1m) and the two Indian carriers could be fined EUR30,000 for failing to provide their emissions data for flights operated within EU airspace in 2011, as required under EU law. Failure to pay could lead to airlines being banned from operating at EU airports.
China and India were at the centre of the recent ETS row, which threatened to force airlines to pay for their carbon emissions on flights to and from the EU – including on distance flown outside EU airspace. While the EU agreed to “stop the clock” this part of the scheme, it is still demanding that airlines pay for their emissions on flights within the European bloc’s airspace.
According to the EU, 1,200 other airlines have already provided their data, but China’s aviation authorities have already said they have no intention of following suit.
Xinhua reported a senior official from the Civil Aviation Administration of China (CAAC) as saying on Friday that the country “will not accept any unilateral and compulsory market measures”.
Speaking at a forum in Beijing, Yan Mingchi, deputy director-general of the CAAC’s policy, law and regulation department argued that the measures were unfair on “developing countries”.
The EU has been widely criticised over its plans for the ETS, with the US government having passed a law that would effectively ban American carriers from taking part, if the scheme is expanded to include emissions occurring outside EU airspace. China also halted all orders of Airbus wide-body jets in retaliation. Relations have normalised since the November 2012 however, when the EU put its plans on hold and said it would work on a global emissions solution with the International Civil Aviation Organization (ICAO).
The aviation industry, led by IATA, has already committed to a 50% cut in CO2 emissions by 2050 and carbon neutral growth from 2020 onwards. The announcement of these fines however, threatens to once again alienate China and India, and increases the risk of a potential trade war.
