On November 19, 2008, the European Parliament and the Council of European Union adopted Directive 2008/101/EC, bringing aviation into the EU Emissions Trading System (EU ETS). This directive entered into force on February 2, 2009, and will be kicked off from January 1, 2012.

China Air Transport Association (CATA) pays close attention to the impacts of EU ETS on Chinese airlines. In September 2007, on behalf of Chinese airlines, CATA sent to Mr. Jacques Barrot, EX-Vice-President of the European Commission, a protest letter expressing our serious concern and strong disagreement with the legislative proposal of including international aviation activities into the EU ETS.

According to the directive, emissions from all international flights that arrive at or depart from an EU airport, as well as the airlines of developing countries, including China, will be covered by the EU ETS. This unilateral action of EU dose not provide legitimate arrangements for airlines in developing countries, gravely violates the universally accepted principle of common but differentiated responsibility in the area of combating climate change, and the provision of the Convention on International Civil Aviation (the Chicago Convention). The EU ETS will not only be helpful for global aviation emission reduction, but also can definitely leads to conflict and aggression among other countries.

Accordingly, CATA issues the following statement on EU ETS:

Chinese airlines are highly concerned about aviation impacts on climate change and actively engage in emission reduction projects of UN, ICAO and China, subject to the principle of common but differentiated responsibilities. However, EU's practice of including international aviation into EU ETS involves critical defects in the system design and blatantly violates the basic principles of international law. Thus, CATA vehemently opposes it.

CATA holds that aviation emission issue shouldn't be addressed by means of unilateralism, trade war or interests first. CATA believes that the most appropriate way is to urge all countries and industry members to agree to a global and common framework for aviation and climate change. If EU disregards our opposition and enforces the EU ETS, CATA will urge China government to take corresponding measures so as to safeguard the right to development of Chinese airlines in the international aviation market.