China has banned all of its airlines from joining the European Union's Emissions Trading Scheme (EU ETS). The ban comes only weeks after the China Air Transport Association said its members disagreed with the EU ETS, joining around 40 other countries, including Russia and the US, who do not support the scheme.
The EU ETS is an initiative that aims to promote a reduction in greenhouse gas emissions by creating a greenhouse gas emission allowance trade within the EU. The scheme applies to all airlines that fly to and from EU countries and requires airlines to reduce their emissions, or buy additional allowances if their emissions go above their allowance. Companies that do not comply could, in the worst case scenario, be banned from EU airports.
China claims that the scheme could cost Chinese airlines £79 million. Their ban of the EU ETS has begun worries that a trade war could begin, especially as there are other countries opposed to the scheme, despite the fact that it could help the global battle against high carbon emissions.
However, opposition to the EU ETS from those external to the EU seems to be fierce. Andrew Herdman, director-general of the Association of Asia-Pacific Airlines said, "We're now at the stage that it's absolutely clear that a whole host of foreign Governments are not going to allow the EU to do this. It does put the Chinese airlines in a difficult position where you've got to comply with the legislation and yet your Government is telling you not to comply."
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