Chinese airlines increase pressure on EU over emissions; ETS could to lead to ‘trade war’

The European Union’s Emissions Trading Scheme (ETS) was a hotly debated topic at the 2011 IATA AGM, with the deeply unpopular scheme attracting strong objections from governments, aviation bodies, airports and airlines around the world. In the eyes of these airlines and bodies, the EU in taking unilateral action, is over reaching its authority and jurisdiction, in contravention of international treaties and bilateral aviation agreements. Critique has also come from stakeholders within the EU, which fear the inclusion of the aviation industry in the scheme will lead to retaliation in the form of trade wars. [4089 words]

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This report contains the following subheadings:

• IATA makes call amid growing chorus of opposition
• Chinese carriers increase pressure on the EU
• US ATA already taking legal action
• AEA warns scheme could distort competitiveness of European airlines
• International Airlines Group calls for ‘plan B’
• ELFAA sees inclusion of aviation into the ETS as 'right decision'
• AAPA sees a political price to the EU ETS
• ALTA labels ETS as 'illegal, flawed and unjust'
• Debate intensifies at IATA AGM

This report contains the following charts and tables:

• China to Europe capacity (seats per week)