Friday, January 06, 2012

China, India up ante in spat over aviation emissions

China and India have ratcheted up their rhetoric against the inclusion of their airlines in the EU Emissions Trading System (ETS), with both countries reportedly threatening not to comply with the programme.
"China will not cooperate with the European Union on the ETS, so Chinese airlines will not impose surcharges on customers relating to the emissions tax," Reuters reported Cai Haibo, deputy secretary-general of the China Air Transport Association, as saying.
Meanwhile, Bloomberg quoted an unnamed official within India’s civil aviation ministry saying that the ministry may ask Indian airlines to withhold emissions data from the EU.
From 1 January, all aircraft taking off or landing at an EU airport must surrender allowances equivalent to the emissions for their entire journey – a move that has been strongly resisted by the International Civil Aviation Organization (ICAO), backed in particular by the US, China and India.
The penalty for failing to surrender adequate emissions allowances is €100 ($128) per tonne of carbon dioxide equivalent, plus an obligation to make good on the allowance shortfall. Ultimately, operators could have their licence to operate withdrawn.
05/01/12 Environmental Finance
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