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European air transport policy, emerged through the confluence of case law and legislation, in four broad areas: liberalization, safety and security, greening, and the external policy. Following the implementation of the single market for air transport, policy shifted to liberalizing and regulating associated services and in recent years to greening, the external aviation policy, and safety and security. Inclusion of air transport in the Environmental Trading Scheme of the European Union exemplifies the European Commission’s proactive stand on bringing the industry in line with emission reduction trajectories of other industries. However, the bid to include flights to third countries in the trading scheme pushed the EU into a controversial position, causing the Commission to halt implementation and to give ICAO time to seek a global multilateral agreement. The chapter also discusses how the nationality clauses in air services agreements breached the Treaty of Rome, and a court ruling to that effect enabled the EC to extend EU liberalization policies beyond the European Union, resulting in the Common Aviation Area with EU fringe countries and the Open Aviation Area with the USA. Another important area of progress was aviation safety, where the EU region is unsurpassed in the world, yet the Commission has pushed the boundary even further, by establishing the European Safety Agency to oversee the European Aviation Safety Management System. Another important area of regulatory development was aviation security, a major focus after the woeful events in 2001, but increasingly under industry scrutiny on costs and effectiveness. The chapter concludes by arguing that in the coming decade, the EU will strive to strengthen its position as a global countervailing power, symbolized in air transport by a leadership position in environmental policy and international market liberalization, exemplified in the EU’s external aviation policy.

Purpose – To examine the relationship between aviation and climate change, and the international dimensions of air transport.

Methodology/approach – A review of aviation's impacts on the global climate, mitigation strategies to reduce this impact, and the possible consequences of climate change for commercial aviation.

Findings – Although a range of mitigation measures have been developed and implemented to reduce aircraft emissions in the short term, with some environmental benefit, there is a real need for the aviation sector to identify the possible impacts of climate change on air travel operations, both to aircraft in flight and to operations at airports. A further challenge will be to devise adaptation plans that will address the vulnerabilities and thus ensure safe aviation-related operations.

Social implications – The climate change impacts of aviation will adversely affect society. In addition, some individuals may have to reduce or stop flying as a result of increased taxes and legislation implemented in response to climate change.

Originality/value of paper – There is a novel focus on the adaptation challenges for the aviation industry in response to climate change.