Abstract

On December 21, 2011, the Court of Justice of the European Union (‘‘ECJ’’) issued a long-awaited judgment in a reference for preliminary ruling in proceedings brought by the Air Transport Association of America, American Airlines, Inc., Continental Airlines, Inc., and United Airlines, Inc. (‘‘ATA and others’’) against the Secretary of State for Energy and Climate Change of the United Kingdom of Great Britain and Northern Ireland. The judgment intends to clarify the highly contentious issue of whether the application of the EU Emissions Trading Scheme (‘‘EU ETS’’) to aviation activities under the Directive 2008/101/EC is compatible with international law, and whether it violates the sovereignty of other states or the freedom of the high seas.

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