Aviation In EU ETS: An Incentive For Efficiency


Authors
Zoe Knight, Celine Fornaro, Samantha Gleave

Research Organisation
Bank of America Merrill Lynch

Report Date
Jan. 1, 2007

Document summary

This is a timely report on the effects on aviation of EU emissions trading starting in 2012.? The EU's forceful moves to include aviation in an emissions scheme, and the likelihood that the scheme will be a "blueprint that will be replicated through other regions"?, makes Merrill Lynch's thoughts even more important.? Of course the combination of rising fuel costs and recession raise questions about whether emissions trading is needed to reduce aviation carbon emissions in the near term.? Merrill Lynch find the costs, on a per passenger basis, not too onerous for airlines and suspect that most of the costs will be passed on to consumers.? However, the scheme may well have ramifications for the aerospace and aero-engine sectors.. ?

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