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China's airlines oppose EU carbon tax

Xinhua, March 10, 2012

• A lawmaker said Saturday that China's civil aviation enterprises sternly oppose the European Union's inclusion of China's aviation industry into its carbon emission trading scheme, which is not in line with international regulations.

  The EU's unilateral move to tax airlines for their carbon emissions runs against the principles of fairness maintained by international civil aviation organizations, said Ren Jidong, deputy general manager of China Southern Airlines Co., Ltd.

  Ren, a deputy to the National People's Congress, the country's top legislature, said the EU's decision could cost China's aviation enterprises billions of yuan.

  Meanwhile, the EU's decision has triggered widespread opposition from many governments. A total of 29 countries signed a joint declaration in Moscow on Feb. 22 to oppose the carbon tax plan.

  Under the tax scheme, it is estimated that around 4,000 airlines will pay the European Union for pollution permits.

  Despite the EU's move, Ren said cooperation between his company and other European aviation enterprises will not be affected.

  He said many aviation companies are actively negotiating with the European Union over the issue.

  "There might be a turning point, and the possibility that the EU might give up its decision can not be ruled out," Ren said.

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