China, home to the world’s fastest growing aviation market, banned airlines from taking part in a European Union carbon-emissions system designed to curb pollution, saying the program violates international rules. The system contravenes the United Nations Framework Convention on Climate Change and international civil aviation regulations, the Civil Aviation Administration of China said in a statement posted on its website today. Carriers were also barred from using the EU program as a reason for raising fares, it said. The EU hopes to resolve the issue through negotiations or it may ultimately be ruled on by the courts, Markus Ederer, its ambassador to China, said at a press briefing in Beijing today. India, the U.S., Russia and global airlines have also objected to the levy, saying it will be less effective than a global solution. “I believe all sides will negotiate again and find a solution,” said Chai Haibo, vice president of the China Air Transport Association. “I can’t imagine that the worst case, such as the EU grounding Chinese flights, could happen.”The airline group has called on the government to oppose the EU levy and it is working on a legal challenge in Germany. Whether the lawsuit will continue will depend on the EU reaction to the China ban, Chai said. The group’s members include China’s big three state-controlled carriers, Air China Ltd. (753), China Southern Airlines Co. and China Eastern Airlines Corp. (67
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