The concept of this paper was originated in ICTSD’s research and policy dialogues under the Global Platform. The study shows that the impact on net emissions covered by the EU ETS could be large, as with growing aviation emissions, operators will have to buy allowances from other sectors in the EU ETS.

This report explores ways to incorporate international aviation and maritime shipping in a climate policy regime. Currently, emissions from international transport are not included in climate policy targets under the Kyoto Protocol. One of the reasons is that it is not clear which country should be held accountable for which share of the emissions.