The China Air Transport Association (CATA) has urged Beijing to act against next year's inclusion of non-European Union airlines in its controversial Emissions Trading Scheme (ETS). According to the European Union, 33 Chinese carriers, including those based in Hong Kong and Macau would be affected by the ETS.
CATA estimates the ETS is likely to cost Chinese carriers an additional CNY800 million ($123 million) annually.
In a statement released over the weekend, CATA urged the Chinese government to ''impose much tougher retaliation measures … on European carriers that operate routes to China'' in response to the ETS.
CATA also warned that the scheme could ''severely impact'' the ''friendly cooperative relations between Chinese and European carriers, as well as European aircraft manufacturers.''
CATA, which represents China's largest airlines, was in negotiations with EU at Brussels early this month and made it clear that it wouldn't accept the inclusion of Chinese carriers in the ETS. It called the scheme illegal and also a violation of the Chicago Convention and of ''Common but Differentiated Responsibility'' principles regarding carbon dioxide emissions.
CATA called on the EU to either cancel or postpone the implementation of ETS on airlines saying the scheme hurt the interests of developing countries.
It also reiterated its support for a global solution to reduce CO2 emissions rather than unilateral action as represented by EU's ETS.