The row between China and the European Union (EU) over Europe’s inclusion of airlines in its emissions trading scheme has cranked up another notch, after the Chinese government revealed it could pass its own legislation challenging the EU’s plans.

According to analyst firm Thomson Reuters Point Carbon, China this week published a draft Climate Change Law, which warns of possible “retaliatory approaches” to dealing with the emissions levies that have been imposed on flights between the EU and China.

The draft states “China objects to other countries and areas using climate change as an excuse to conduct protectionism in trade, or unilaterally levying carbon taxes or similar taxes on Chinese airlines, ships, etc”.

The statement is seemingly a direct response to the EU law that forces airlines to pay for emissions from every flight in and out of its airports.

China, alongside Russia, the US and India has led international opposition to the EU plans, arguing that introducing a regional emissions levy will damage trade and undermine the aviation industry.

However, the EU has rejected all calls to water down its scheme, insisting that it was forced to introduce the measures due to the on-going failure to develop an international mechanism for tackling rising aviation emissions.

Officials in Brussels have repeatedly stressed that they will reconsider the EU scheme if progress is made towards developing an international scheme for tackling emissions, or if other countries adopt comparable measures for cutting emissions from the sector.

The EU is currently investigating whether a Chinese scheme to use revenues from a passenger tax for carbon cutting projects constitutes an “equivalant measure” that would excuse China from the regulation.

However, in the meantime the sabre-rattling is intensifying, with Beijing reportedly delaying a $3bn order for 15 Airbus A330 aircraft in protest and the new draft law threatening to codify opposition to the EU scheme.

The draft law also includes possible provisions for both a national emissions trading scheme (ETS) and for the introduction of a carbon tax.

In 2011, China’s top economic planning agency, the National Development and Reform Commission (NDRC), approved seven cities and provinces to start pilot emission trading schemes in 2013, with a nationwide scheme earmarked to start in 2015.