EU Emission Rules Increase Costs For Chinese Airlines

created: 2009-09-07

Chinese airline companies are subject to higher costs as a result of the new European Union Emissions Trading Scheme.

Since the European Commission did not publish the list of airlines which will have to participate in the EU's emissions trading scheme from 2012 until August 22, the submission of a carbon test report by the airlines which was scheduled on August 31 has to be postponed. As a result, there is more time for Chinese airlines to think of ways to deal with the effect of EU Scheme.

It is learned that 33 air carriers from China have been included in the list which has nearly 4,000 commercial carriers, including Air China, China Eastern, China Southern, Spring Airlines and Juneyao Airlines. Though they have more time to think about their response to the Scheme, there is one thing that can not be avoided: increased costs. So far, China Eastern has set up a special team to deal with the matter.

According to EU's emission law for airlines, the emission quota of airline companies will be reduced from 2012. During the initial period of the quota control, 85% of the emission quota will be issued to airline companies free of charge and the rest will be give to them via auctioned. If the airlines fail to submit a report on their carbon emission tests, they will be excluded from the 85% free quota.

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