China's CATA to boycott EU carbon scheme

Beijing (CNS) -- China Air Transportation Association (CATA) has called on domestic airlines to say "no" to the Emissions Trading Scheme (ETS)about to be instituted by the EU.

The appeal made by CATA on February 6 indicates a united boycott is being planned to challenge the EU's charging rule for carbon emissions. It is based on three inactions, that is, no participation in deals offered by the EU carbon market, no proposals for carbon emission schemes submitted to member countries of the EU, and no negotiations with the EU regarding favorable polices or exemptions.

The EU's move is viewed as violating the United Nations Climate Change Framework Convention and related regulations of the International Air Transport Association, says an officer from the China Civil Aviation Authority (CCAC) on February 6.

The EU announced days ago it would activate parts of the registration mechanism for the ETS, and reminded airlines they can apply to the EU to obtain a quota for a certain amount of free emissions. It is known that in 2012 the EU will award 181-million tons of carbon emission allowances not subject to charges under the scheme.

With the authorization of the State Council, the CCAC recently forbade civil airlines to engage in the EU's ETS program without permission, or to raise transportation fees using the ruling as an excuse.

China hopes to find a solution acceptable to both sides after talks with the EU. China is also considering what measures are necessary to protect domestic airlines as the situation unfolds.