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Aviation Carbon Market Strategy

Under the EU ETS, airlines will be issued tradable emission allowances, which must be surrendered in order to cover the airline's greenhouse gas emissions. Those airlines that do not have enough allowances to cover their emissions will have to buy them in the international carbon market; those airlines that have more than they need will be able to sell them to other airlines.

As airlines enter the EU ETS, they now face exposure to global carbon prices. These prices have experienced extreme volatility in recent years:

Based on years of valuable experience as a leading player in the global carbon market, EcoTraders can formulate and implement a carbon market commercial strategy for the airline.

This strategy will take into account key factors like the airline's allowance allocation, expected emissions, price volatility in the carbon market, and regulatory changes.

This strategy will prepare the airline for participation in the allowance auction, as well as provide the airline with an overall action plan regarding purchasing and/or selling emissions allowances in the global carbon market.