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The potential trade war between China and the EU over the Emissions Trading Scheme could be averted as China starts to build its own carbon trading market. China has chosen seven cities for a pilot project, but it will take some time for it to become national. This article gives a full summary of the situation, and explains what it means for aviation. (So far, 10 Indian and Chinese airlines have failed to comply with the EU’s ETS.) To find out other countries’ plans for ETS, go here.

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