Aviation allowances begin trading under EU ETS but outlook mixed

Stormy skies ahead for EUAAs amid regulatory risk

Stormy skies ahead for EUAAs

European Union Aviation Allowances (EUAAs), the new carbon credits aimed specifically at the aviation industry, have begun trading amid a political storm regarding participation of non-European Union (EU) airlines in the EU Emissions Trading Scheme (EU ETS). The market is likely to have poor liquidity until political and regulatory risk is mitigated, say analysts.

Commodities exchange Ice recently launched an EUAA contract with the first trade taking place at the end of February 2012 between Slo