As a result of the ongoing legal challenges to the inclusion of airlines in the EU Emissions Trading Scheme (EU ETS) we understand that many airlines are ill prepared for their inclusion in this scheme, as they have (understandably) been hoping the challenges will be successful.
The date for aviation's inclusion in the EU ETS, of 1 January 2012, is only a few days away. Airlines would be well advised to grab this nettle and deal with risk and cost management in the context of the EU ETS, by implementing appropriate emissions trading strategies.
This article explains the basics of the EU ETS, the basis of airlines' inclusion in the scheme and the credits that can be used by aircraft operators and looks at the opportunity to take advantage of carbon trading mechanisms to limit liabilities. It also raises a number of questions we suggest airlines consider as a matter of priority and explains how Burges Salmon could assist in this process.
