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China's airlines are refusing to pay any carbon costs under the European Union's Emissions Trading Scheme.
The China Air Transport Association represents China's biggest airlines, which are state-owned. It said on Wednesday that it would not cooperate with the EU, and that airlines are considering legal action against the EU.
The Chinese Foreign Ministry said on Thursday that the EU should consult other countries on the issue.
The EU's scheme was launched in 2005 as one of the pillars of its efforts to combat climate change. Beginning on January 1st, all airlines using EU airports are included in it.
Chinese officials have criticized and lodged several complaints about the carbon emissions trading. But this is the first time the airlines have said they won't comply at all.