The European Commission has resolutely stated that all airlines must comply with the European Union’s Emissions Trading Scheme (EU ETS), which came into force on January 1. Late last week, China’s Foreign Ministry spokesman Hong Lei said the country “opposes the European Union's unilateral legislation. China has expressed to the EU our deep concern and opposition many times on a bilateral level.” He added: “We hope the EU can take careful precautions with a cautious and practical attitude, and regarding those aspects involving China, appropriately discuss and handle this matter.”
However EU spokesman for Climate Action Isaac Valero-Ladron said: “As the [European] Court of Justice confirmed last year, our law breaches basically no principles of international law and it is not extra-territorial. And it does not breach the principle of sovereignty.
“If the Chinese want to do business in Europe, like open a restaurant or something, they have to comply with the health and the safety requirement. This is not that different. This is just that if you want to operate in Europe, you have to respect the law. You have to respect the environmental law. I think it is very, very clear,” he said.
Valero-Ladron warned “the law says clearly that if you miss the deadlines there are a few penalties. But we are confident that the companies and also their shareholders will comply with the legislation because as penalties for no compliance are much higher for basically, the compliance of the legislation.”
Despite protestations from the China Air Transport Association, its' member airlines are reported to be co-operating with the EU ETS and they have been allocated free allowances following registration.
Penalties for non-compliance in the UK range from £3,750 for failing to report and £375 for every day thereafter the report is not submitted, up to a maximum of £33,750.