THE EU said it could suspend parts of a new law requiring airlines to account for their greenhouse gas emissions, but only if countries were to make clear progress this year toward establishing a global emissions control system.

    China earlier announced its carriers would be forbidden to pay any charges under the EU Emissions Trading Scheme (ETS) without the Central Government’s permission.

    Chinese Foreign Ministry spokesman Liu Weimin said “China will consider taking necessary steps in accordance with the way things develop to protect the rights of our nationals and our companies.”

    The fines for non-compliance with the ETS amount to about US$130 per ton of CO2 emitted for which there has been no carbon credit purchased.

    British Airways, Qantas and other airlines are calling on governments to find a swift resolution to a political dispute over the EU’s carbon scheme, because the deadlock may create competitive distortions.

    Since the start of this year, EU law obliges all airlines using EU airports to be included in the ETS, the 27-nation bloc’s main policy to fight global warming as it caps emissions on over 11,000 power and industrial plants.

    But the scheme, which puts the cost of carbon on an airline’s balance sheet potentially pumping up fares, has drawn ire from major foreign emitters such as China and the United States.

    The EU’s executive board said it is working with several nations to settle disputes over the ETS, which it sees as central to its efforts to combat climate change. The Climate Action division says it is confident that the ETS would withstand all challenges.

    A group of 26 countries including Russia, India, China and the United States plan to meet in Moscow on Feb. 21 to discuss a plan of action.

(SD-Agencies)