Clifford Chance

Turbulence in the EU ETS – a practical overview of the EU ETS for aircraft lessors and lenders

24 February 2012

The start of the Year of the Dragon has seen the PRC government formalise its opposition to the imposition of the EU Emissions Trading Scheme ("EU ETS") upon foreign airlines flying to and from the EU. On 6 February, under instructions from the State Council, the Civil Aviation Administration of China ("CAAC") issued an order to PRC airlines prohibiting them from participating in the EU ETS, without prior governmental approval, and from increasing ticket prices and other charges to cover the cost of the EU ETS.

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