January 5, 2012 1:13 PM

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Chinese airlines say they will refuse to pay European Union carbon emission tax that came into force from 1st January.The EU brought airlines under its Emissions Trading Scheme (ETS), which levies a charge on flights based on their carbon emissions.ETS has been launched as part of its efforts to combat climate change. The tax has been criticised by China, India, the US and Canada. Chai Haibo of the China Air Transport Association said that its members will not cooperate with the ETS. Airlines which do not comply with the new EU tax can be fined and even prohibited from flying into the region.

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