China said it will not accept any "unilateral and compulsory market measures" announced by the European Union threatening Chinese carriers with fines for non-compliance with its Emissions Trading System (ETS).
Speaking at the 2013 China Civil Aviation Development Forum in Beijing, Yan Mingchi, deputy director-general of the policy, law and regulation department under the CAAC , said, "Airlines in developing countries should be provided with financial and technological support in their efforts at coping with the effects of climate change."
Balance must be maintained between the development of the international aviation industry and emission reduction targets, state-run China Daily quoted him as saying.
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It said member states could fine the companies under the terms of the ETS, which is designed to cut CO2 emissions.
Greenhouse gas emissions from those countries participating in the ETS dropped by two per cent in 2012, and aircraft operators responsible for 98 per cent of the 2012 aviation emissions covered by the ETS have taken the necessary steps to date to comply with the ETS legislation, the EU said.
According to the EU, the Chinese and Indian airlines identified have not submitted their 2011 carbon emission data to the EU yet, whereas 1,200 other carriers have already handed over their reports, the EU statement said.
The Chinese carriers could face fines totalling 2.4 million euros (USD 3.09 million), and the two Indian airlines face fines of 30,000 euros, according to a New York Times report.