The Environment Committee at the European Parliament backed a proposal to suspend temporarily the EU CO2 Emissions Trading Scheme (ETS) for intercontinental flights, so as to enable International Civil Aviation Organisation (ICAO) to agree worldwide measures. The ETS will continue to apply to flights between EU airports.

The "stop the clock" proposal that would temporarily exempt airlines from the EU CO2 Emissions Trading Scheme (ETS) requirement to report carbon emissions for flights between EU airports and third countries, was backed by MEPs at the Environment Committee in the European Parliament. MEPs highlighted that the proposal aims to create an incentive for this year’s International Civil Aviation Organisation (ICAO) meeting to agree on a global mechanism to reduce greenhouse gas emissions from aviation and demonstrate the EU’s determination to make it work. In November 2012, MEPs discussed the future of the EU emissions trading with Climate Action Commissioner.

The proposal also means that sanctions would not be imposed for failure to report. MEPs stressed that this exception to the ETS is conditional upon progress at the ICAO and earmarked ETS revenues for efforts to tackle climate change. The ETS will continue to apply to flights between EU airports.

ICAO parties made some progress towards agreeing on an equivalent to the EU ETS at a meeting on 9 November 2012, and MEPs believe that a global, market-based measure to reduce international aviation emissions could be agreed at the next ICAO assembly in September 2013.