Crunch Time for EU's ETS As Market Collapses

摘要

The European Union's Emissions Trading Scheme (ETS) has hit a patch of severe turbulence with prices and confidence in the market taking a nosedive in recent weeks. And worse could be on the horizon, with a legal battle over plans to extend its reach to aviation due to start this week. The European Court of Justice will start hearings Jul. 5 in case brought by the US' Air Transport Association (ATA) and three carriers, American, Continental and United, alleging that Brussels' plans to force foreign airlines to participate in the ETS violates international law. From the beginning of 2012, all airlines flying to Europe are supposed to offset their emissions using the ETS-or face fines and suspensions. Europe, it will be argued, it overstepping its authority by attempting to regulate airspace beyond its borders in contravention of international agreements, such as the Chicago Convention, and also interfering with International Civil Aviation Organization (ICAO) authority (JFI Jun.13'11).