EU Airline CO2 System Would Survive WTO Challenge, Study Says

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The European Union’s plan to impose carbon-emissions curbs on international airlines would probably stand up to any challenge at the World Trade Organization, according to a study by a University of Cambridge researcher.

Countries including the U.S., China, Russia and India have criticized the EU’s emissions trading system, which requires all aircraft landing in and departing from Europe to surrender enough carbon dioxide allowances to cover their emissions. Allowances up to a fixed overall cap are given to participants for free or must be bought at auctions or on the carbon market.