Tuesday, January 3, 2012
As it is now 2012, the aviation industry is officially required to participate in the EU ETS. An article today from Reuters Africa suggests that patience will be necessary when attempting to evaluate the impact of this new regulation on the aviation sector. See Jeff Coehlo and Ben Garside, Legal, Economic Concerns Mute Aviation CO2 Trade, Reuters Africa, Jan. 3, 2012 (available here). According to the story some carriers have already begun purchasing permits, but many, especially non-EU carriers, remained cautious given the possibility of future legal challenges and diplomatic stand-offs over the scheme. The recent collapse of the price of permits as a result of ongoing economic troubles further complicates the decisions facing the newest ETS participants as to how best to proceed with their new obligations under EU law.