Over the next few decades, climate change and relevant government policies will bring fundamental changes to the business landscape. The Kyoto Protocol is an international treaty that commits state parties to reduce greenhouse gas emissions. The Paris Agreement recognizes that climate change is a shared problem and calls on all countries to submit plans on climate change mitigation and adaptation. Recently the European Commission adopted a package of proposals to make the EUs climate, energy, land use, transport and taxation policies t for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. From the perspective of isolating mechanisms, discuss:

• how climate change will reshape the competition in the commercial aircraft market,
• potential strategies that will be taken by Airbus and Boeing to sustain their competitive advantage.

Be as comprehensive as possible.