China Bans Its Airlines From EU Carbon Program

Law360, New York (February 6, 2012, 4:04 PM EST) -- China has forbidden its airlines from paying for carbon emissions under the European Union's controversial cap-and-trade program or hiking fares as a result of the program without government permission, the country's aviation authority said Monday.

The ban is the latest salvo in an ongoing worldwide battle over the EU's Emissions Trading System, which began applying to all airlines that fly into or out of the EU's airports Jan. 1.

Though the EU's highest court upheld the ETS in December, the Civil Aviation Administration of China insisted...
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