Major Chinese airlines will jointly sue the European Union over its system that will require global airlines to buy carbon-emission permits, an official with the China Air Transport Association said on Tuesday, Shanghai Daily reported. The association, representing 33 Chinese airlines, is preparing to challenge the move in EU courts by the end of the year, Zhu Qingyu, who is in charge of market research at the association, told Shanghai Daily. "We know it might be difficult to win the lawsuit in EU courts, but will still take the action as a measure of protest," Zhu said. According to the EU plan, as of January 2012, airlines flying to or from the bloc will have to buy permits from the Emission Trading System at a cost of 15 percent of the carbon emissions they generate, with large fines for noncompliance. The move is expected to cost Chinese airlines an estimated 17.6 billion yuan (US$2.77 billion) by 2020, or about 300 yuan for each ticket for flights between China and European countries. The association demands that the EU not implement the system or suspend it until 2020. Otherwise, it will ask China to carry out stricter limits on EU airlines when they depart or land at Chinese airports, the newspaper reported.
Copyright 2011 China Economic Review PublishingAll Rights Reserved
