Imagine it’s 2013, and a cement factory in Dusseldorf is installing scrubbers on a smokestack, funded in part by carbon credits it sold to United Airlines, which needed the credits to fly to Europe. Meanwhile, a power plant is going up in Malaysia, partially paid for by KLM, which had to offset some of its excess CO2 emissions. Those types of scenarios could easily occur when the European Union requires airlines to comply with its emissions trading scheme (ETS), starting in 2011 for ...

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