China, Russia unite to oppose EU carbon tax

0 Comment(s)Print E-mail, January 4, 2012
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A passenger airplane of China Southern Airlines. [File photo] 

China is poised to ally itself with Russia to oppose a move to levy a carbon tax, following the EU's implementation of such a levy on Jan. 1 on airlines operating to and from Europe.

The two countries are considering a range of retaliatory measures, including cancelling orders of European passenger aircraft, a massive fuel tax on EU airlines and a "flight right fare," if the EU insists on pushing ahead with the tax.

Analysts estimate that an additional cost of US$16 to US$17 per ticket will be passed on to passengers traveling to and from Europe as a result of the EU tax.  

"The two sides have been engaged in a heated battle,"said Chai Haibo, vice deputy secretary general of the China Air Transport Association.

He added that although January 1 was the date mentioned in the legislation, the law would not actually come into effect until March 2011.

Chai called on Chinese airlines to take counter measures, including boycotting the EU carbon market, refusing to submit a monitoring plan to the EU and refusing to negotiate with the EU on concessional terms.

A source close to the National Development and Reform Commission, China's top economic planner, revealed that the authorities are studying a range of potential counter measures in order to protect the legal rights of Chinese citizens and enterprises.

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