China Denounces EU Airline Carbon Emissions Fines, Leading Global Dissent

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The European Union's fines on airline carbon emissions are being opposed by China. A day after China's largest airline carriers refused to pay costs for non-compliance with the region's standard, Brussels warns that fines associated with non-compliance will cost even more. For observers, it appears that a global trade impasse between two major global trading powers has come to a head.


Starting Jan. 1, 2012 airlines using any of the airports within the EU will be subject to its Emissions Trading Scheme (ETS) law. The EU passed the airline carbon emissions law to charge foreign airlines for carbon dioxide emissions beyond the regional standard. Those not in compliance with the EU standard are fined $128 (100 euro) for each tonne of carbon emitted above the allowance. Serial offenders face a ban from providing airline services within the EU member states.


"China opposes the European Union's unilateral legislation," said Chinese foreign ministry spokesman Hong Lei. "China has expressed to the EU our deep concern and opposition many times on a bilateral level."


"We hope that Europe can take a cautious and realistic attitude and act carefully and properly consult related parties including China to resolve this issue," said Lei, noting that his nation was not the only one opposing the new law.


India has also joined the dissenting nations. India may advise airlines to withhold emissions data, said a civil aviation ministry official reporting to Business Week. 


In November 2011, a declaration was adopted by the United Nations' International Civil Aviation Organization (ICAO) seeking exemptions for international aircraft operators from the EU carbon emission regulations. The ICAO's non-binding statement was supported by 26 countries, including the US, Japan and Russia, who assert that the EU regulation does not comply with international law.


In December 2011, the US argued before the European Court of Justice that the EU fines violated aviation and climate change pacts. The EU insists that these are necessary efforts to support its initiative to lead the fight against climate change.


U.S. consumers will begin to feel the pinch. Continental, Delta, United and US Airways have already added surcharges to one-way tickets to EU destinations to pay for carbon emissions.


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