US carriers sue EU over emission trading scheme

The US Air Transport Association (ATA) and three US airlines are to sue the European Union (EU) over its EmissionTrading Scheme (ETS). The ATA, along with American Airlines, Continental Airlines and United Airlines, has launched a court action in London after stating that the ETS “violated the US-EU bilateral Air Transport Agreement of 2007 and […]


The US Air Transport Association (ATA) and three US airlines are to sue the European Union (EU) over its EmissionTrading Scheme (ETS).

The ATA, along with American Airlines, Continental Airlines and United Airlines, has launched a court action in London after stating that the ETS “violated the US-EU bilateral Air Transport Agreement of 2007 and the Kyoto Protocol”. The ATA says it is necessary “in order to preserve our members’ right to challenge implementation of the EU ETS as applied to aviation.

The ETS has attracted criticism from some carriers because it requires every airline that operate within the EU boundaries to submit emissions reports. The scheme allows airlines that go above their EU-imposed credits from any others that are below their quota. Carriers who fail to comply risk severe penalties that include being banned from flying within the EU completely.