The China Air Transport Association (CATA) has voiced strenuous objections to the European Union’s plan to apply its carbon Emissions Trading System (ETS) to Chinese aircraft landing and taking off from European airports, state media reported. Starting in 2012, all aircraft flying in and out of Europe will be subject to a carbon emissions cap, and those that exceed the cap must purchase carbon emissions reduction credits. While the Civil Aviation Administration of China (CAAC) has stated that Chinese airlines’ fuel efficiency has improved by an average of 3% year-on-year over the last decade, the CATA said the EU rule would nevertheless cost Chinese airlines billions of renminbi. The organization has said the unilateral action is contrary to international convention, and is threatening retaliatory measures against flights by European airlines in and out of Chinese airports. The US airline industry is also objecting to the rule.