Eight Chinese and two Indian airlines face fines of up to several million euros for not paying for their greenhouse gas emissions during flights within the bloc, the European Commission said on Friday. It said member states could fine the firms, among them Chinese flag carrier Air China, under the terms of the EU's Emissions Trading System which is designed to cut the carbon dioxide pollution blamed for global warming.
In a highly controversial move last year, the EU added airlines to the ETS regime, sparking howls of protest from the United States and China which said the move breached international law. Beijing even went so far as to threaten retaliation against the EU, its biggest single export market, adding to a growing list of trade disputes souring ties.