EU to freeze carbon emission tax

The European Union will freeze for a year its rule that all airlines must pay for their carbon emissions for flights into and out of EU airports. This follows threats of international retaliation.

Flights by all airlines within the European Union will still have to pay for their carbon emissions under existing rules. The year-long exemption will apply to flights linking EU airports to countries outside of the bloc.

The United States, China and India have put intense pressure on the European Union. Climate Commissioner Connie Hedegaard said she had agreed to stop the clock to create a positive atmosphere for international talks on an alternative global plan to tackle airline emissions. EU member states still have to formally endorse the Commission's proposed freeze.

Hedegaard said she had informed representatives of all 27 member states of the Commission's plan, but could not specify how long the EU approval process might take.