China will file lawsuit against EU carbon tax

China's transport association will file a lawsuit against the European Union over an EU law to charge airlines for carbon emissions on flights to and from Europe, despite dim prospects of winning the legal action, Chinese media reported. The European Court of Justice ruled on Wednesday against a group of US airlines that challenged a European law requiring that all airlines flying to and from EU airports to buy permits under its emission trading scheme from January 1. The scheme is aimed at helping offset the carbon emissions of European flights. "We deeply regret that the United States lost the lawsuit. China will continue to steadfastly pursue a lawsuit," Chai Haibo, deputy secretary of China Air Transport Association (Cata), was quoted by the Economic Observer for its Monday edition as saying. Article continues below The China Daily on Friday also quoted Chai as saying that China's four major state-run airlines have reached an agreement with Cata to jointly sue the EU in Germany at the end of this month. "We know that the prospect of victory is dim, but we want to show our firm opposition by launching a lawsuit," Chai was quoted by the China Daily as saying. Cata says the scheme will cost Chinese airlines 800 million yuan ($126 million) in 2012 and more than triple that by 2020. The scheme has triggered hostile reactions from airlines around the world.