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China slams EU bid to tax non-EU airlines for carbon emissions

China has voiced its opposition to the European Union's Emissions Trading Scheme (ETS), a plan to tax non-EU international airlines for carbon emissions, but said it would like to seek a solution through multilateral mechanisms.

Solutions in the aviation industry regarding climate change issues should be decided on the basis of negotiation and common agreement, China's chief negotiator at UN climate change talks Xie Zhenhua told the media here on Wednesday.

The ETS goes against relevant international conventions and rules, and is thus opposed by most non-EU countries, Xie, deputy head of the National Development and Reform Commission (NDRC), said. The ETS requires all airlines flying in EU airspace to pay a tax on 15 per cent of their total carbon emissions for 2012, a move that has triggered global opposition. The unilateral measure taken over an issue that involves multilateral interests is improper and unlawful, Xie said.

Moreover, by setting benchmark emission quotas at the average annual level in the 2004-2006 period, the EU trading system discriminates against China and many other developing countries whose aviation industries have grown rapidly in recent years, he said.

As the EU Commission has put off its tax plan for one year, China is willing to figure out a proper solution to the issue through a multilateral mechanism, such as the platform of the International Civil Aviation Organisation, in accordance with relevant international law. Xie said that after the Doha climate conference, China will also vigorously participate in high-level round-table talks regarding cutting emissions in the aviation industry, and is planning to table some proposals to advance this cause.

China is also taking robust measures to reduce emissions in its aviation and shipping industries, including airport renovation projects and other efforts to increase energy efficiency, he said.

Taxing and trading emissions are not the only approaches to emission reduction, Xie said, adding China will not reject such measures, but hopes for a more comprehensive solution. Last year, China initiated a pilot carbon emissions trading system in seven of the country's provincial-level regions, including Beijing, Shanghai and Guangdong, and the programme has been running smoothly so far, state-run Xinhua quoted him as saying. China is also willing to cooperate with other countries in this field and establish an acceptable international carbon emissions trading market. But that should be on the condition that China, itself, has relevant experience and a sound system, Xie said. Moreover, the government is considering a carbon tax system to see which system works better in China, he said.
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