European Commission puts aviation carbon scheme on hold

European Commission plans to force airlines to buy carbon permits have been put on hold.

The EU's climate commissioner Connie Hedegaard said that she had just recommended in a phone conversation with the 27 EU nations that the tax be suspended in the interests of negotiating a global CO2 deal.

The suspension of the CO2 tax would affect flights "to and from non-European countries", meaning European airlines will continue to pay.

The EU imposed the scheme on January 1, but 26 of ICAO's 36 members, including India, Russia, China and the United States, have opposed the move, saying it violates international law.

The EU tax forces airlines operating in the bloc, whatever their flag, to buy 15 percent of their carbon emissions, or 32 million tonnes, to help battle global warming.

“We are pleased that the Commission has listened to the airlines’ point of view. As international tensions over the issue have escalated, European airlines have been facing the very real prospect of discrimination and retaliation in our most important global markets. Indeed, some AEA members have already encountered operational obstacles with regard to certain countries” said Athar Husain Khan, acting Secretary General of AEA.

AEA hopes that the move will stimulate action within the notoriously slow-moving ICAO, which must come up with concrete progress towards a global approach by its General Assembly in November 2013.