EU sticks on China: Carbon taxes are not payable

The European Union’s carbon trading system will distort the competition situation in the international aviation industry. The European Union’s insistence on forced air “carbon tax” is likely to trigger a trade war with some countries. The European Union will impose strong international aviation carbon emission fees (the so-called aviation “carbon tax”). The decision in the international community incurred many opposition. Many aviation industry professionals believe that the EU’s “indifferent action” will not only trigger other countries to adopt countermeasures, but will further aggravate the global aviation business environment.

On November 19, 2008, the European Union adopted a bill to decide to include the international aviation industry in the EU's carbon emissions trading system and implement it on January 1, 2012. In other words, starting from January 1, 2012, all airlines flying within the European Union will be limited in their carbon emissions. If they exceed the limit, they must pay for it.

In an interview with Xinhua, the head of the media department of the International Air Transport Association said that the European Union’s carbon trading system will distort the competition in the international aviation industry. The EU’s insistence on forcing the “carbon tax” on aviation is likely to trigger a trade war with some countries. . “This is a situation that nobody wants to see, especially the aviation industry that is facing funding problems and Europe, which is deeply in debt crisis.”

Some European airlines also expressed their concerns. British Airways spokesman Norris said: "If the European Union imposes a 'carbon tax' on non-EU airlines, we are very worried that these countries will take retaliatory measures against us. Because of the high oil prices, the debt crisis has worsened. Possible retaliatory measures will make our business worse."

Taylor, the president of the International Air Transport Association, said during the Singapore Air Show that the international aviation industry will face a very severe operating situation in 2012 and in the coming years. If the European debt crisis continues to ferment, some European airlines may even have bankruptcy.

According to Taylor's estimation, although the global aviation industry's profit is expected to reach 3.5 billion U.S. dollars this year, if Europe is in a recession, the aviation industry will likely suffer a loss of 8.3 billion U.S. dollars next year.

Director-General of the Asia-Pacific Airlines Association, Herdman, also said at the Singapore Air Show that if the EU does not make any changes in the aviation carbon tax issue, it will have a profound impact on passengers, the entire aviation industry, and international trade relations. . He estimated that the European Union’s collection of aviation "carbon tax" may bring about 200 million U.S. dollars in losses to airlines in Asia. By 2020, this loss will reach an annual average of 400 million U.S. dollars.

These people in the industry have called on the EU to negotiate a solution to the "carbon tax" through an international multilateral mechanism. Moores, director of the Media Department of the European Airlines Association, said: "European Airline Association members believe that the guidance of ICAO to develop a globally harmonized solution is the best way to avoid trade disputes caused by EU aviation carbon emissions regulations."

Taylor also holds similar views. He said that the best way to limit carbon emissions from international aviation is to develop and implement a globally unified solution within the framework of ICAO.

In fact, under pressure from many parties, there have been indications that the EU’s attitude toward aviation’s “carbon tax” has become loose.

The spokesman for the EU Commissioner for Climate Affairs Herzegaard, Radelong, said that the EU stands ready to discuss with relevant partners on relevant issues, including consultation within the framework of ICAO.

Radlon also said that the EU's aviation "carbon tax" bill clearly stipulates its revisability. If ICAO adopts a measure that can reduce aviation carbon emissions globally in the next six months or one year, "We will be very happy to amend this law."

What is the European Union's strong "carbon tax"? In November 2008, the European Union issued the 2008/101/EC directive to incorporate the international aviation industry into the EU's carbon emissions trading system and announced that it will be implemented on January 1, 2012. According to the directive, all international flights taking off and landing at the airports in the European Union must pay for excess carbon emissions. More than 2,000 airlines, including Chinese companies, have been included in the system.

According to the calculation of the International Air Transport Association, the European Union’s approach means that the global aviation industry will increase the additional burden of $23.8 billion over the next eight years. According to estimates by Ji Yuan, a member of the Chinese delegation to the Moscow conference and an official of the Civil Aviation Administration of China, according to EU regulations, in 2012 alone, Chinese airlines would need to pay them a “carbon tax” of about 800 million yuan. By 2015, this cost will reach 1.7 billion yuan per year.

The EU disregards the opposition of the international community and forcibly imposes a "carbon tax". Zhang Min, director of the European Institute of Science and Technology at the Chinese Academy of Social Sciences, said in an interview with the Xinhua News Agency that the EU’s “stick to it alone” imposes a carbon emission tax. A high-sounding reason is to actively respond to global climate change and protect human resources and the environment. However, in reality, this is an important strategy adopted by Europe to grab the right to speak in the global response to climate change and to seize the commanding heights of low-carbon industry development. In addition, the levy of aviation carbon tax is also a new way for the EU to obtain public revenue.

In response to the European Union's unilateral action to levy aviation carbon taxes, the joint meeting adopted by the Moscow Conference includes a basket of countermeasures that can be selected. Countries will choose to adopt them according to their specific circumstances. These include: using the law to prohibit the participation of domestic airlines in the carbon emissions trading system; revising the “Open Skies” agreement with EU countries; suspending or changing negotiations on the expansion of commercial flight rights. This is another powerful response from the international community to the "carbon tax" of the European Union.

Civil Aviation Authority official Yoshihara said that the EU, ignoring the opposition of all countries in the world, has unilaterally imposed unreasonable charges on the global aviation industry. This is unacceptable to China. The coalition adopted by the Moscow Conference was tough in its wording in order to exert greater pressure on the EU and force it to stop collecting carbon taxes on its own.

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