China says ETS to cost $2.8 billion by 2030

The European Union's plan to charge airlines for their greenhouse gas emissions would rise dramatically to cost Chinese airlines 18 billion yuan (US$2.8 billion) a year by 2030, China's civil aviation head said recently.


China Civil Aviation Administration Emissions Trading Scheme ETS EU European Union Li Jiaxiang


The European Union’s plan to charge airlines for their greenhouse gas emissions would rise dramatically to cost Chinese airlines 18 billion yuan (US$2.8 billion) a year by 2030, China’s civil aviation head said recently.

China will continue to push the EU to axe the scheme, which has angered countries including the US, Russia and India, but was not planning to take retaliatory measures, said Li Jiaxiang, chief of China’s Civil Aviation Administration.

“We are not in a position where we have to retaliate,” Li told reporters on the sidelines of China’s annual parliament meetings. Li said the plan would raise annual costs for China’s airlines by 800 million yuan ($127 million) initially, before rising to 3 billion yuan by 2020 and 18 billion yuan by 2030.

“We are taking positive measures of talking via the International Civil Aviation Organisation and other bodies to promote cooperation and reconciliation,” he added. “We appreciate the EU’s intention to protect the environment, but measures must be reasonable and acceptable for other countries,” Li said. Li also said that China has no plans to buy more of Airbus’ flagship A380 jet at present. China-backed Hong Kong Airlines last week threatened to cancel an aircraft order with Airbus in the latest escalation of tension over the plan, the South China Morning Post reported.