China Prohibits Its Airlines from Paying EU Carbon Tax

In a move to oppose the controversial tax levied on carbon emissions by the European Union (EU), the Chinese Government has announced it has barred its airlines from complying with the guidelines. The formal declaration by the government came just weeks prior to the meeting between the Chinese and European leaders at a summit.

The Carbon Trading Program, which came in to effect from Jan.1, 2012, is regarded as one of the widest-reaching measures adopted by any country or regional bloc to regulate emissions of greenhouse gases that are largely blamed for climate change. It reportedly aims to make airlines accountable for their carbon emissions, which contribute to global warming.

As per the scheme, all airlines will be given pollution permits slightly less than its average historical emissions record. In case, an airline exceeds the limit, it will be required to buy permits from other airlines that have emitted less than allowed and have leftover permits to sell. Emissions are counted for the entire route of an aircraft that touches down in Europe.