Emissions in the EU: US Vilifies Carbon-Trading Scheme for Airlines

In its desire to reduce carbon emissions, the European Union has come up with a plan that has run into strong headwind. An EU regulation, in effect as of January 2012, requires carbon-trade certificates from airlines taking off or landing at EU airports. Europe’s airline industry has operated under the regulation since 2005. The US government, the US airline industry and China protest the emissions trading system [ETS]. US Congress is also preparing a bill to forbid US airlines from cooperating on the EU plan. “The EU ETS has put a price on carbon emissions and shown that it is possible to trade in greenhouse gas emissions,” explains the European Commission on Climate Action. “The changes to be introduced in 2013, notably a progressive move towards auctioning of allowances, will further enhance its effectiveness.” The crux of the argument is whether a government can impose environmental penalties or standards on companies operating within its borders. – YaleGlobal