Top China airlines to ignore EU carbon tax, body says

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China's biggest airlines will not pay a new European Union tax aimed at cutting carbon emissions, their trade body has said.

On 1 January, the EU brought airlines under its Emissions Trading Scheme (ETS), which levies a charge on flights based on their carbon emissions.

The tax has been criticised by China, India, the US and Canada.

Chai Haibo of the China Air Transport Association said that its members would not cooperate with the ETS.

The China Air Transport Association (CATA) represents companies including Air China, China Southern Airlines, China Eastern Airlines and Hainan Airlines.

Airlines which do not comply with the new EU tax can be fined and even prohibited from flying into the region.

Last year, it was claimed the plan could cost Chinese airlines 95m euros ($124m, £79m) in extra annual costs.

"The CATA, on behalf of Chinese airlines, is strongly against the EU's improper practice of unilaterally forcing international airlines into its ETS," Mr Chai said on Thursday.

China has warned that it may implement retaliatory measures against the levy.

Other nations have also been fighting the plans.

In December, the US lost its attempt to have the issue of the new airline tax blocked by the European Court of Justice.

The US had argued that its carriers were set to lose out heavily, and that the charges violate climate change and aviation pacts.

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