The aviation industry resolves to be carbon neutral by 2050

The International Air Transport Association (IATA) on 4 October this year has committed to achieving net-zero carbon emissions by 2050. This is no small undertaking: it will require the co-ordination of all industry stakeholders to mitigate an estimated 1.8 gigatons of carbon at an estimated cost of 2 trillion USD. This commitment will align with the Paris Agreement goal for global warming not to exceed 1.5°C. Continue reading

VB Leaseco Pty Ltd (administrators appointed) v Wells Fargo Trust Company NA (trustee)

In November 2021, the High Court of Australia will consider the application of the Convention on International Interests in Mobile Equipment done at Cape Town on 16 November 2001 (the Convention) in Australia in light of facts arising out of the administration of the Virgin Australia group.  The hearing will consider the interaction of the Convention in the context of Australia’s insolvency regime, and, more particularly, in what will be of significant interest to the aviation community, the requirements of the Convention to ‘give possession’ of an aircraft object to a creditor.
In this note, we take a closer look at the background to the hearing, the arguments being advanced, and the impact on the aviation sector if this appeal is successful.

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UK ETS for Aviation: Comparison with EU ETS and Implications for Aircraft Lessors and Financiers

Following expiry of the Brexit transition period, a new UK Emissions Trading System (“UK ETS“) came into force on 1 January 2021 – replacing the UK’s participation in the existing EU Emissions Trading System (“EU ETS“). As one might expect, the UK ETS is almost identical to the EU ETS in many respects. However, despite initial signs that the UK ETS would be linked to the EU ETS, for the time being the two regimes remain distinct and will operate in parallel. In the context of aviation, this potentially creates greater complexity for aircraft operators in terms of compliance – with the UK ETS applying to outbound flights from the UK to the EEA and the EU ETS applying to inbound flights from the EEA to the UK. In this briefing, we consider the new UK ETS regime for aviation and how it compares with the existing EU ETS framework, as well as the interaction with the Carbon Offsetting and Reduction Scheme for International Aviation (“CORSIA“). We also consider any impact the UK ETS may have on aircraft lessors and financiers, noting in particular that the previous statutory right of UK regulators to detain and sell aircraft for failure to pay EU ETS penalties appears to have been removed under the UK ETS. Continue reading