The inclusion of the aviation sector within the European Union's Emissions Trading Scheme: What are the prospects for a more sustainable aviation industry?

Abstract International aviation emissions of CO2 were excluded from the Kyoto Protocol. Global aviation has grown strongly, with traffic increasing at an average rate of 4.4% per year over the period 1989–2009 but there has been no regulatory action on CO2, owing to difficulties over agreeing how emissions should be allocated to Parties. Slow progress by the International Civil Aviation Organization to develop market-based mechanisms has resulted in the EU taking unilateral action, by including aviation within its emissions trading scheme, commencing January 2012. The cap for the allowances of the scheme is based upon the average 2004–2006 emissions for the EU-27, ∼219 million tonnes CO2. Aviation CO2 emissions for 2006 were calculated to be 587 million tonnes, globally, of which 135 million tonnes were attributable to international flights to/from the EU, 51 million tonnes for intra-EU, and 16.5 million tonnes for domestic EU-27. Thus, under the EU's emissions trading scheme, 35% of global aviation CO2 emissions would be captured. The EU's action has been opposed by a number of countries, airlines and trade associations, expressing concerns over its legality under ICAO's Chicago Convention. By contrast, non-governmental organizations have criticized the policy for not addressing aviation's non-CO2 impacts. Currently, there is no consensus on the most appropriate method for addressing aviation's non-CO2 impacts. A shift in policy governance from the EU to ICAO may help to alleviate some of the concerns that have been raised and a global scheme would facilitate a greater scope for emissions reductions.