Sunday, February 12, 2012

China 'bans' Airlines from Joining EU Carbon Scheme

I didn't realize that the EU implemented an Emissions Trading Scheme (ETS) effective January 1st. The goal is to cut carbon emissions and part of the ETS is a tax on flights through EU airspace. The tax depends on the carbon emissions of the flight. The China Air Transportation Association previously said it didn't support the ETS due to the approximately $124 million it would cost Chinese airlines. Now, the government has banned all airlines from joining the ETS and also banned the increase of fares or implementation of additional charges in connection with the scheme. The US and Canada have also voiced disapproval for the ETS and it is unclear how the dispute can be resolved without third party intervention.

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