Fight Over Airline Emissions Tests EU Trading Scheme

Law360, New York (January 6, 2012, 8:46 PM EST) -- The European Union’s threat to ban foreign flights that don’t comply with a law requiring airlines to pay for their carbon emissions marks an escalation in a global dispute that could test the EU’s willingness to defend its emissions trading scheme, experts say.

The law, which took effect last week, mandates that all flights in and out of Europe participate in a cap-and-trade program, and is among the most ambitious components of the scheme.

China, the U.S. and other countries have signaled a refusal to comply,...
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