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EU Regulation of Aviation CO2 Emissions Isabelle Laborde The European Union (EU) Emissions Trading Scheme (EU ETS) is the mechanism set up to ensure the EU complies with its commitment under the Kyoto Protocol. A limited number of allowances, each consisting of the right to emit one tonne of carbon dioxide (CO2) into the atmosphere, are allocated to individual operators of energy-intensive industries by Member States, based on the amount of CO2 they are expected to emit in any given year...