The Emission Trading Scheme And Its Possible EALA排放交易的方案及其可能的 EALA.docVIP

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The Emission Trading Scheme And Its Possible EALA排放交易的方案及其可能的 EALA.doc

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The Emission Trading Scheme And Its Possible EALA排放交易的方案及其可能的 EALA

The Emission Trading Scheme And Its Possible Consequences For Airlines Francesco Alongi, francesco_alongi@virgilio.it. Abstract The aim of this paper is to analyse the impact of the EU Emission Trading Scheme on the aviation industry. The paper provides an outline of the Scheme and an account of the early years of its implementation. The ETS has dramatically changed the regulatory framework in which airlines operate, laying upon them a considerable financial burden. This has led to litigation as aircraft operators challenged the legality of the ETS in light of the Chicago Convention and of the Open Skies Agreement between the EU and US. The far-reaching implications of the Scheme are likely to affect not only the aviation industry but also the Single Market as a whole, calling into question EU Competition and Environmental Law and the respective spheres of competence of European institutions and Member States. The Emission Trading Scheme. The Emission Trading Scheme (henceforth also referred to as “ETS”) is a project launched by the European Union on 1 January 2005 which currently concerns more than 11,000 of Europe’s largest emitting installations and industrial plants (collectively responsible for almost half of the EU’s greenhouse gas emissions). The scheme was first set up by Directive 2003/87/EC (a.k.a. “ETS directive”), and due to its far-reaching scope and its extremely ambitious goal, it is now considered to be “one of the cornerstones of [EU] environmental protection policy”. It can currently boast a trading volume in the region of €29 billion, or approximately 70% of global traded volumes in carbon products, and thus constitutes the main driving force of the global carbon market. The ETS draws its origins from the Kyoto Protocol, but it is also independent from it, since it was implemented even before the Protocol became legally binding for EU Member States (in February 2005). The European Commission sees this project as essential to its commitment to