European Union ETS

What is the European Union's ETS?  Many people don't understand how it works or how exactly it is governed.  Simply put, the Emission Trading System is based off a "cap and trade" system where companies are held accountable and limited in the amount of greenhouse gases emitted that they are permitted to emit into the atmosphere.  This system encompasses a number of industries, including powerplants, factories, and aviation.  There are numerous countries, the US included, that are opposed to this participation in the system, specifically because of its charges that could be applied to aviation.  The EU saw China order their fleet of European-bound aircraft not to participate and then ordered a freeze on the purchases of additional Airbus aircraft because of the EU ETS.  India had a similar reaction to the ETS, refusing to report their emissions to the EU.

The United States is currently opposed to the ETS scheme as well.  In preparation, the United States has already drafted legislation making it illegal to pay the proposed tariff.  With all the pressure ensuing from all angles, the European Union was forced to announce the postponement of the law.  Britain, France, and Germany were pushing for the elimination of aviation inclusion all together.  

ICAO is now responsible for developing a plan to make a global solution by the Fall of 2013.  This will be a hard task, considering all the parties that must be included in the talks.  The US's initial issue with the EU's plan was the fact that the emission amount for inbound/outbound flights included the entire flight, not just the portion over European airspace.  In my opinion, in order to make the fees fair and justified, fees should be assessed and paid according to where the flight takes place.  There is so much technology tracking flights, flight time, fuel rates, and even emissions, that a formula could be made to fairly divide monetary reimbursement to the countries affected.  With the ICAO's funding and access to research and information, there is no reason why something like this couldn't be accomplished.  By doing a formulated, evidence based calculation of fees, companies will know what kind of fees they will incur.

References

DeVore, J, Hayes, J, & Labrousse, F.  (26 February, 2013).  Aviation and the EU ETS: what's next?.  Retrieved from: http://www.mondaq.com/unitedstates/x/223598/Aviation/Aviation+and+the+EU+ETS+Whats+Next

Lewis, B, & Volcovici, V.  (10 December, 2012).  Insight: US, China turned EU powers against airline pollution law.  Retrieved from: http://www.reuters.com/article/2012/12/10/us-eu-airlines-climate-idUSBRE8B801H20121210

European Commission.  (25 February, 2013).  Reducing emissions from the aviation sector.  Retrieved from: http://ec.europa.eu/clima/policies/transport/aviation/index_en.htm

European Commission.  (4 January, 2013).  The EU emissions trading system (EU ETS).  Retrieved from: http://ec.europa.eu/clima/policies/ets/index_en.htm