December 23, 2011
China has warned the European Union to abandon its controversial carbon tax on airlines or risk provoking a global trade war.
Adding weight to the warning, an industry insider told the Financial Times that the Chinese government was seriously considering measures to hit back at the EU if it insists on charging international airlines for their carbon emissions.
In a case initiated by US airlines, the European Court of Justice ruled on Wednesday that the EUâ€™s carbon emissions trading scheme did not infringe on the sovereignty of other nations, and that it was compatible with international law. The change is set to go into effect from January 1.