1.1 Background
In recent years, the aviation industry keeps growing fast with the average annual growth rate of 5% and
stimulates the economic growth. However, the international aviation is also responsible for about 2%-3% of
anthropogenic greenhouse gas emissions (Wang, 2010). With the increasing of the air transportation’s
greenhouse gas emission, its accumulated contribution to climate change becomes larger over time. In order to
cap CO2 emissions of the aviation sectors, the European Commission, the European Parliament and the
European Council decided to include international aviation in the existing European Union’s CO2 Emissions
Trading Scheme (EU ETS) in December 2008. According to this policy, more than 2000 airlines whose flights
will land at or depart from any airport in the EU should be included in the EU ETS since 2012, including Air
China, China Eastern, China Southern and other 33 airline carriers from Mainland China