The European Union’s Emissions Trading Scheme (ETS) was a hotly debated topic at the 2011 IATA AGM, with the deeply unpopular scheme attracting strong objections from governments, aviation bodies, airports and airlines around the world. In the eyes of these airlines and bodies, the EU in taking unilateral action, is over reaching its authority and jurisdiction, in contravention of international treaties and bilateral aviation agreements. Critique has also come from stakeholders within the EU, which fear the inclusion of the aviation industry in the scheme will lead to retaliation in the form of trade wars.