'EU's scheme could blacken relations'

SINGAPORE - If the European Union goes ahead with its plan to force other countries to join its carbon-trading scheme, it will affect friendly relations between Chinese airlines, European airlines and plane manufacturers, a senior official with China's top aviation industry guild said on Tuesday.

Chai Haibo, deputy secretary general of the China Air Transport Association, told China Daily that Chinese airlines felt "angry" about the EU's plan that all airlines flying to its member states be included in its Emissions Trading Scheme starting Jan 1 next year.

The system compels polluters to buy permits for each ton of carbon dioxide they emit above a certain cap. It is estimated that Chinese airlines will face a bill of 800 million yuan ($123 million) in 2012, which will more than triple in 2020, but the system has not made it clear yet where the money will go after being collected.