ETS and the airlines: the EU’s looming enforcement nightmare

The framers of the EU's Directive containing its Emissions Trading System (ETS) for aviation were well aware it would generate controversy. It has.

Almost every major nation has vociferously opposed it; even Russia, China and the US are for once wholeheartedly united in their opposition. China and India have banned their airlines from participating in the ETS and similar legislation has passed both houses in the USA. A 26 country "Coalition of the Unwilling" has formally agreed a series of retaliatory measures should EU states impose sanctions for non-compliance. The outcome could be bloody and very costly to airlines and economies alike, the last thing the industry needs at this time.

The real crunch comes when enforcement of the ETS is attempted. Individual EU member states must be the ones to fine and even, as directed by the Commission, suspend services by foreign airlines. This means each EU state and its airlines risks being picked off by retaliation from the offending country.

The first of a two part report, this article reviews the practical implications in implementing the EU's penalties for non-compliance with its controversial ETS rules. Part II will look at the ironies of the EU's focus on following the tabloid herd, while failing to get its own house in order.