Air China leads consortium against EU’s ETS

A consortium of Chinese Airlines will file a lawsuit in German courts in an attempt to fight the European Union’Emission Trading Scheme (ETS), which will be enforced in January. Developing countries, such as China and India, will be greatly affected by the levy emission charges on all flights within, to and from Europe. Both countries are experiencing fast growth of air traffic volume. “ETS will cost mainland carriers 800 million yuan (US$125.7 million) in 2012 and increase rapidly to 3 billion yuan (US$471.5 billion) by 2020,”China Air Transport Association Secretary General Wei Zhenzhong said. He explained that a consortium led by Air China would hire a lawyer in Europe, who will file a case against the ETS in Germany. Wei warned that the conflict could escalate into a political conflict and even an international trade war if it is not resolved. In the U.S., a bill which proposed that all American airlines refrain from participating in the ETS is expected to be passed late this year. U.S. carriers filed a case against the EU in 2009. (September 28, 2011)