KUALA LUMPUR // Etihad Airways plans to use its partnership with Masdar, the government-owned alternative energy firm, to stay one step ahead of EU environmental regulations. A tie-up forged by Etihad and Masdar in March could soon see the two collaborate on research for alternative jet fuels as well as carbon offsetting, measures by carbon producing groups to compensate for their pollution by purchasing credits from environmental initiatives. Masdar is involved with various environmental measures including solar power, and plans to bury emissions into ageing oil and gas wells to improve well productivity. The EU's emissions trading scheme begins in 2012, and requires all airlines flying to the region to compensate for emissions produced on its aircraft. The UN may also impose restrictions in November at a climate change conference in Copenhagen dubbed "Kyoto 2". "We will ensure our full compliance to the scheme," the airline said at an industry conference this week in Malaysia. "Etihad will certainly be making use of our partnership with Masdar, and specifically their carbon management unit, in helping to assess our future allowance needs and in purchasing allowances to ensure compliance." igale@thenational.ae