The European Union's (EU) carbon emissions tax for airlines that operate in its airspace comes into effect on January 1, with the Chinese government reiterating its opposition to the scheme as recently as December 22.
I believe the mechanism is more of an attempt to help the economies of the EU countries, rather than seriously tackle carbon emissions.
Under this scheme, Chinese airlines will have to pay an extra tax of 800 million yuan ($126.46 million) to the EU for their carbon emissions in 2012, with the cumulative total reaching 17.6 billion yuan by the end of 2020, according to China Air Transport Association figures.
China's aviation sector has seen an annual growth rate of 15.3 percent in international passenger flow over the last decade. The upcoming carbon tax scheme will inevitably push up the costs for China's aviation sector, weighing on its expansion.
At the same time, the EU's aviation sector has experienced a slowdown due to the European debt crisis. As such, this mechanism will undoubtedly cost EU airlines less.
The EU is a transfer point for many international routes whose departure and termination points are not in the EU. However, these flights will be charged under the scheme according to the whole length of their journey, not just that in EU airspace.
As such, the EU's move infringes national sovereignty and violates international aviation treaties.
The EU is right to acknowledge that it is essential to provide a financial incentive to reduce emissions. However, it is also necessary to reduce the airlines' purchases of large, high-carbon emission aircraft, and develop aircraft that are more environmentally-friendly.
However, the EU countries haven't reduced their great support for aircraft manufacturers, whose sales and exports greatly contribute to their GDP, nor have they increased incentives to develop more environmentally-friendly aircraft. At the same time, the EU has insisted on the launch of the carbon emission tax, which can be seen as another revenue source for the EU.
What's more, while the EU professes to want to reduce carbon emissions, its residents haven't changed their high-emission lifestyles. For example, ownership of private cars remains far higher than in emerging economies.
The mechanism will just allow the EU to redirect the financial burden of reducing carbon emissions to other countries, and shirk the responsibility that a big economy is supposed to take.
China, as a large country whose domestic airlines support large flows of international passengers, should act preemptively to become a leader in low-emission aircraft in a bid to hedge against the economic losses from the carbon emission tax, and set an example for how the issue of aviation emissions can be more effectively, and fairly, tackled.
The author is an associate researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.
