Brussels, 05/01/2012 (Agence Europe) - China announced on 4 January that it would not take part in the EU Emissions Trading System (ETS). It had already indicated its unhappiness with the European ETS directive's unilaterally imposing that, with effect from 1 January, third country airlines purchase 15% of the CO2 emissions quotas that will be allocated to them for their flights to and from the EU. The European Commission, however, is not overly alarmed. After the Court of Justice ruling on 21 December (case C-366/10) threw out the action lodged by American airlines against the ETS directive (see EUROPE No 10521), the Commission is firm in its belief that it has the law on its side and in the value of dialogue in removing misunderstanding, and is sure that third countries will have no other choice but to comply with environmental legislation designed solely to protect against climate change and in no way infringing international law or the principle of states' sovereignty.
Chai Haibo, Assistant Secretary General of the Chinese Air Transport Association (CATA), was quoted by Reuters on Wednesday as saying that China would not cooperate with the EU on the ETS and its airlines would pass on any additional costs resulting from the emissions tax to their customers. When asked on Thursday by the European press about the possibility of a “counter attack” by Europe, Isaac Valero Ladron, spokesman for Climate Action Commissioner Connie Hedegaard, rejected the use of such language. “China's opposition is nothing new. All the Chinese airlines have asked for free allowances. The directive has been implemented. As of April 2013, all airlines will be required to report on their verified emissions and will have to pay pollution duties corresponding to the quotas allocated. Political talks will continue with all the parties concerned - including China, the Untied States and Russia - on equivalent measures. If any country would like to reduce emissions by any other means, that is fine by us. We are not telling third countries what they should do; but if they want exemption from our legislation, they will have to have a similar system in place for reducing emissions with the most suitable measures. We expect third countries to comply with European law, just as we comply with theirs. We are not going to change our legislation and we are not going to retreat”, he said.
He also noted that, if airlines fail to meet the April 2013 deadline, the authorities of the states concerned will have to pay penalties for excessive emissions (€100 per tonne of CO2 equivalent for which no permit was allocated). He added: “We remain confident, however. We believe operators will comply with out legislation as the penalties for failure to comply are heavier than the costs of implementation”. The ETS directive also allows the European Commission to ban an airline from operating in the EU if that airline continues to offend but- “that, of course, would only be used as a last resort”. (AN/transl.rt)