European aviation firms brace for carbon trading | Aviation International News

Regulations and Government

European aviation firms brace for carbon trading

The outlines of aviation’s place in the EU Emission Trading Scheme– a CO2 emission permit market–are becoming clearer.

By Thierry Dubois • Writer

February 26, 2008

The outlines of aviation’s place in the EU Emission Trading Scheme– a CO2 emission permit market–are becoming clearer. Experience from other industries gives trading experts confidence that aviation’s absorption will be smooth but expensive.

“It is a commodity market,” Marc La Rosa, marketing director at trading specialist Orbeo, told AIN. He asserted that the ETS is working well, adding that the prices (as low as two or three euro cents per metric ton of CO2) during the first phase (2005-2007) should not be considered a serious failure. The authorities later attributed this low pricing to “overallocation,” a situation that La Rosa said will not be repeated in the second phase (2008-2012).

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