According to an Airbus spokesperson, the EU Emissions Trading System (ETS), which was extended to the aviation industry this year despite vehement objections and controversies, has led to the Chinese government threatening to cancel aircraft orders as a form of retaliation against the system.

“We are concerned that the ETS issue could have implications for trade. Airbus is already being affected by this with the Chinese government holding back approvals for airline orders for a number of our long-range aircraft, including 32 A330s. Another order for 10 A380s is also under threat,” stated the spokesperson.

The aircraft manufacturer is urging the EU to reconsider the carbon tax and resolve the issue at a global level via the International Civil Aviation Organisation (ICAO).

China isn’t alone in its disapproval of the carbon-trading scheme. This move came closely after more than 20 other nations, including Russia, India and the US, met in Moscow last month to discuss ways to undermine the ETS, including filing an official complaint with ICAO and the possibility of ceasing talks with European carriers on new routes (see story here).

To read our feature about the ETS, see

Carbon Conflict

Alisha Haridasani