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Inclusion in the ETS could bring profits for airlines, concludes BAA research

1st October, 2003

This paper, commissioned by BAA’s external emissions trading steering group, analyses the financial impact of integration of intra-EU aviation into the EU greenhouse gas emissions trading scheme (EU ETS). 

It concludes that: “a pure trading system with a requirement to submit allowances covering 2.5 to 3 times the emitted tonnes of CO2e is much cheaper for the industry – up to 40 times – than any of the scenarios involving a tax on part or all of the climate damage costs. In the pure trading scenario, the financial impact is almost zero, and in some cases a gain is made.”

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Download Final Paper