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EU carbon tax to hike air travel costs

By Song Jingli (chinadaily.com.cn)
Updated: 2011-04-02 14:21
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Once a new European Union (EU) carbon tax is levied on Chinese airlines, 743 million yuan will be added to the costs of flights from China to Europe and likely mean a fare increase of 300 yuan for each economy flight passenger, the Shanghai Morning Post reported.

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The European Commission's carbon tax plan will only exempt airplanes with carbon dioxide emissions that add up to less than 10,000 tons. A Boeing 777 plane from Shanghai to London, traveling 9,233 kilometers, will emit 222 tons of carbon dioxide. If the airliner has three flights to Europe each week, the exemption quota will be used up within seven weeks.

The China Air Transport Association, China Eastern Airlines, China Southern Airlines and Air China are preparing to challenge the EU in court over the new carbon tax, the newspaper reported.