Consequences of Carbon Trading

Extra territorial JurisdictiOTi is exercised when a State (or in this case a community of States) seeks to apply its laws outside its territory in such a manner as may cause conflicts with other States. It can be justilied by the invocation of the effects doctrine or the effects theory which goes beyond the principles of sovereignty. This theory relates to a situation where a State assumes jurisdiction beyond its territorial limits on the ground that the behaviour of a party is adversely affecting 

There is a general common law presumption against the extra territorial application of legislation. See the House of Lords decision in Holmes v. Bangladesh Biman Corporation [1989] AC 1112 at 1126 87 ILR 365 at 369. Also, Air India v. Wiggins [1980] IWLR 815 1819 77 ILR 276 at 27. 

The 1984 case of Laker Airways v. Sabend held that once law was declared applicable it could not be subject to qualification or ignored by virtue of comity. However, changes could be effected through diplomatic negotiations. The United 

The Third Restatement constitutes a comprehensive revision of the earlier (1965) Restatement, covering many more subjects, and reflecting important developments in the intervening decades. This Restatement consists of international law as it applies to the United States, and domestic law that has substantial impact on the foreign relations of the United States or has other important international consequences. 

Comity, at law, refers to legal reciprocity where one jurisdiction will extend certain courtesies to other nations, particularly by recognizing the validity and effect of their executive, legislative and judicial acts. The term refers to the idea that courts should not act in a way that demeans the jurisdiction, laws, or judicial decisions of another country. It is especially important in the application of principles of public international law. Part of the presumption of comity is that other nations will reciprocate the courtesy shown to them. 

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