Isra-Mart srl : China may take stronger countermeasures against EU's carbon tax

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Isra-Mart news:

China "is still waiting for European Commission's ultimate reply" on EU's latest decision to impose a carbon tax on flights entering EU airspace. And the Chinese government is now mulling on counter-measures if EU maintains its stance, the China Economic Weekly said on Tuesday, citing industry experts.

Chai Haibo, a member of the delegation of China Air Transport Association (CATA) who attended the discussion with European officials in Brussels on May 2, said they (European officials) were shocked by the Chinese government's objection to the European Union's Emission Trading System and its decision.

EU ruled on March 7, 2011 that all airline companies with routes operating inside or entering EU zone will have to reduce their carbon emissions to 97 percent of what their average levels between 2004 and 2006 were. And by 2013, the figure would have to be slashed to 95 percent. From Jan. 1, 2012, over 2,000 airlines in the world with business in EU are deemed to pay carbon tax for over-the-limit emissions.

China will pay around 800 million yuan ($123 million) for the carbon dioxide emission quota in 2012 alone. And the figure will be over 3 billion yuan ($0.5 billion) by 2020. Each flight to Europe will have to bear 15 million yuan ($2.3 million) of additional cost for the quota.