As expected, and much to the disappointment of airlines, the European Parliament yesterday adopted a compromise agreement with the European Council on including aviation in the EU Emissions Trading System beginning Jan. 1, 2012. Under terms of the deal, all flights starting and/or landing in Europe (including government flights) will be included in the ETS. Airline emissions allowances in 2012 will be capped at 97% of the average annual emissions in 2004-06 and at 95% from 2013 onward. ...

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