The aviation industry, the European Union's Emissions Trading Scheme and Small and Vulnerable Economies: development-friendly frameworks

This Project Briefing examines some of the concerns and contradictions resulting from the EU decision to limit the market supply of CERs to LDCs only from 2013, and suggests that, for SVEs, there is an even greater need to ensure that the regulatory frameworks put in place to manage climate change are development-friendly, including at the national, regional and multilateral level.

Key points: the inclusion of the aviation industry in the European Union's Emissions Trading Scheme (ETS) may set a precedent for the inclusion of similar sectors in the future; EU limit on its market for the supply of certified emissions reductions to the Least Developed Countries from 2013 excludes other countries vulnerable to climate change that depend on tourism; and such countries could adopt carbon optimisation taxes, or develop national or regional ETSs.