The ETS or Emission Trading Scheme.

The Emissions Trading Scheme, a program created by the EU to help reduce carbon emissions in the atmosphere, in my opinion, is a great program, but the way it is going to be implemented is a little off.  First off the ETS (emissions Trading Scheme) is a system where the EU will in a way "Fine" air carrier operations entering or operating inside EU airspace.  The EU will offer "credits" that may be purchased by air carriers, traded among air carriers, or given back to the government instead of money.  However these credits will need to be purchased.  The problem arises when we realize how the cost or total amount of credits due to the EU is determined.  The cost / credit is determined by the last leg flown into or in EU airspace, a big problem for US air carriers.

The money that the EU will be getting through the program, technically will be going for emissions R&D, However, that is shrouded in question. The money will be going into a sort of pooled government fund. This has caused many questions to arise.  one if them being, will the money really be used for R&D in regards of emissions research? or is this just a scheme to get money into the poor european economy that has been in decline for many years?

Currently there is heated debate between the US and the EU.  The EU is stating that all aircraft must participate in the program, And that US is trying to pass a bill that is stating that it will be illegal for US aircraft to participate in the program.  I personally believe that the US is trying to to this because of the fact that this is based on the last leg flown into the EU.  Lets take a flight from KJFK to AMS.  The EU will want to charge an carrier for the entire flight as if the entire fight has emissions over EU airspace.  where if you think about it. only about 15 percent of the flight is flown in EU airspace.  Most of it is over Oceanic / international waters, and parts of canada.  This will cause our aircraft to make more connecting flights, to areas such as North Africa, or the Middle East, before flight in to EU airspace, which will cause tickets to increase, and passenger heartache to increase. Something the the US and US air carriers do not want.

IF this does become mandated, I feel that there will be more mergers to help mitigate costs between individual carriers,  also prices of tickets will go up.

I feel that this would be effective if international flights from the US would be charged for just the time spent in EU airspace, or after a given point or intersection.  I feel that it is a good idea on paper, but the way that it is laid out now is impractical and unfair to all involved.