US and China prepare retaliation against EU ETS

Following the European Court of Justice’s ruling yesterday that the European Union Emissions Trading Scheme, rumours abound that the US and China are planning to retaliate against the scheme. One option rumoured to be considered by the US is imposing its own carbon levy on European airlines flying into America. European airlines, which have been ordered to supply the US Department of Transportation with details of their greenhouse gas emissions, will face double taxes and no doubt passing those costs onto customers. That said if the US also implements a carbon levy it may also affect their domestic market, which