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This article reports on the possible implications of the Emissions Trading Scheme to be introduced by the European Union (EU) in 2008 to the airline industry as of February 2006. The article provides an overview of such a scheme. It discusses the three main coverage options of the proposed scheme. It also addresses questions regarding the inclusion of non-EU airlines and the impact on emissions.

Discusses the effects of the emissions trading scheme on the aviation industry in Europe. Reaction of aircraft manufacturers on the agreement; Challenges faced by the British government in applying the trading scheme to aviation; Proposal of the European Commission to form a forum comprising the world's largest emitters.

The author discusses the Emissions Trading Scheme of the European Union (EU) which taxes airlines and passengers. She perceives three major problems of the scheme which are violation of sovereignty, draining of funds which can be used for aviation innovations, and revenue collected from the scheme will not necessarily be used for environmental improvement. She asserts that if EU can tax any flight in Europe, it can also enforce emission taxes on importing U.S. goods.