The Permanent Representatives Committee of the Council backed the informal agreement reached on 12 March by the Council and the European Parliament on the decision derogating temporarily from directive 2003/87/EC establishing the EU scheme for greenhouse gas emission allowance trading. It is expected that formal adoption will be completed before 30 April 2013.

The outcome of the informal discussions between the Council and the European Parliament on 12 March on the decision derogating temporarily from directive 2003/87/EC establishing the EU scheme for greenhouse gas emission allowance trading, was endorsed by the Permanent Representatives Committee of the Council. It still needs to be formally approved by the Parliament and adopted by the Council. The Environment Committee at the European Parliament backed a proposal to suspend temporarily the EU CO2 Emissions Trading Scheme (ETS) for intercontinental flights in February 2013.

According to the Council, the decision temporarily defers enforcement of the obligations of aircraft operators in respect of incoming and outgoing international flights under the EU emissions trading system for 2012. It will temporarily exempt airlines from the ETS requirement to report carbon emissions for flights between EU airports and third countries, and sanctions will not be imposed for failure to report.

The decision intends to reinforce the positive momentum within the International Civil Aviation Organisation towards a global market-based approach to reducing greenhouse gas emissions in the aviation sector. The EU/ETS directive will continue to apply in full to intra-EU flights and flights between the EU and a number of closely connected areas and territories.