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Aviation in the Emissions Trading Scheme: The impact of the 2012 ‘Stop the Clock’

The EU Emissions Trading Scheme (EU ETS) initially covered CO2 emissions from all flights to and from EU airports. However, in 2012, facing significant opposition and threats of a trade war, the EU revised the scheme to include only intra-EU flights, a move known as “Stop the Clock.” What is the cost of this scheme? How can it effectively reduce aviation emissions in the future?

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