CHINA said yesterday it has barred the country’s airlines from joining a European Union scheme to charge for carbon emissions from flights into and out of Europe and prohibited airlines from charging customers extra because of the EU plan.

    The hardening of the dispute, which comes a week before Chinese and EU leaders hold a summit next week, could potentially subject Chinese airlines to fines or prohibitions on use of EU airports.

    The aviation row also comes as eurozone countries have looked to China, with its big holdings of foreign exchange reserves, for a show of economic support while they grapple with the latest phase of their debt crisis.

    The announcement from the State Council bolstered China’s opposition to the plan — intended to help curb greenhouse gases from aviation that are adding to global warming.

    It said Chinese airlines would need approval if they want to join the EU airlines emissions plan, which Beijing has already denounced as an unfair trade barrier.

    “China hopes Europe will act in the light of the broader issues of responding to global climate change, the sustainable development of international aviation and Sino-European ties, strengthening communication and co-ordination to find an appropriate solution acceptable to both sides,” an unnamed official from China’s civil aviation authority was quoted by the Xinhua News Agency as saying.

    From Jan. 1, all airlines using EU airports have been brought into the EU’s Emissions Trading Scheme, alongside EU utilities and heavy industry.

    Any airlines that do not comply face fines of 100 euros (US$128) for each ton of carbon dioxide emitted for which they have not surrendered allowances. In the case of persistent offenders, the EU has the right to ban airlines from its airports.

    Late last year, the European Court of Justice ruled against a group of U.S. airlines that challenged the European law requiring a carbon cap on all airlines flying to and from European Union airports.

    In December, too, the China Air Transport Association (CATA) urged China’s airlines to refuse to take part in the emissions scheme.

    CATA says the scheme would cost Chinese airlines 800 million yuan (US$123 million) in the first year and more than triple that by 2020.

    (SD-Agencies)