China Envoy Backs Shunning of Airbus
By Daniel Michaels, The Wall Street Journal | Mar. 09, 2012
|
China's ambassador to the European Union said it "makes sense" for Chinese airlines to shun Europe's Airbus planes in favor of competing American models from Boeing Co. in response to the EU's new levies on aviation greenhouse emissions.
Wu Hailong's comments are among the first by a senior Chinese official linking Beijing's displeasure with the EU's emissions trading system, or ETS, to jetliner sales by the Airbus unit of European Aeronautic Defence & Space Co.
EADS chief executive Louis Gallois on Thursday said that the Chinese government is withholding final approval on contracts for 45 Airbus jetliners with a catalog value of US$12 billion because of ETS.
Mr. Wu said that when the EU includes a Chinese airline in the ETS, "it makes sense for them to go to Boeing."
Under the EU program, any airline operating at an EU airport must hold special credits to offset its carbon dioxide emissions since the start of this year. Airlines have said their inclusion in the ETS, which already covered many EU industries, will cost them billions of dollars annually.
Airbus warned last spring of the risk of foreign backlash against the EU plan, as China and others had threatened action if their airlines were forced to comply.
Governments outside the EU, including China, the U.S., Russia and India, have accused the 27-country bloc of exerting extraterritorial authority by levying fees on emissions that occur outside EU airspace.
Mr. Wu said the EU's decision to include non-EU airlines in the ETS was made "unilaterally, without prior consultation with other countries" and this "contributed to the current dilemma." He said the dispute should be resolved internationally, through the United Nations' International Civil Aviation Organization, which is currently holding discussions on the subject.
"The issue is too big to be decided by the EU alone," he said. "It requires all parties to talk together."
A spokesman for EU climate commissioner Connie Hedegaard said that environment ministers from all 27 members had met Friday in Brussels and "repeated their full support to the EU line on aviation." He said that EU officials expect China "to be a constructive player in getting a global agreement, and once a global agreement is reached, the EU legislation can be modified."
Mr. Wu, who began his posting last month, said he had only learned of the dispute over Airbus planes on Friday in media reports. But he endorsed the idea of avoiding the European plane maker due to ETS. "I think it makes sense for China's airlines to make such a decision," he told reporters.
Mr. Wu said that ETS involves many countries outside the EU and many of them use Airbus planes. "It is not reasonable to charge them carbon taxes when the plane is made by a European company," Mr. Wu said.
The ambassador said the situation "could lead to a long-term conflict and could lead to retaliation."
Officials in Beijing have not commented officially on Mr. Gallois's statement that China was delaying approval. In China, airplane orders have traditionally required government approval.
Mr. Wu in Brussels said that Chinese airplane orders are "largely a commercial decision by the airline, but of course their decision will be influenced by the position of the central government on ETS."
Striking an upbeat tone, he predicted talks at ICAO would succeed. "I am optimistic we can find a solution because all the major parties are involved in this dialog."