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EU aviation carbon tax challenged (Photo: EUobserver)

China confronts EU on aviation tax

China has banned its airlines from taking part in Europe's Emissions Trading System (ETS), which forces all airlines flying in and out of Europe from 1 January this year to buy pollution permits.

On Monday (6 February) Beijing flat-out refused to pay and warned that the CO2-reduction scheme could lead to a "trade war."

"The Civil Aviation Administration of China (Caac) recently issued a directive to Chinese airlines that without the approval of relevant government departments, all...

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