Pay to Pollute

The proposal calls for European airlines, as well as those with flights to and from the 27-member bloc, to have to meet emissions quotas by either reducing their CO2 output or purchasing carbon dioxide credits from other less pollutant industries.

"Our decision is of utmost importance in our fight against climate change," said Portuguese Environment Minister Francisco Nunes Correia, who chaired the talks held on Thursday, Dec. 20, in Brussels. His country holds the rotating EU presidency through the end of the year.

Germany's Environment Minister Sigmar Gabriel said that "air traffic must contribute to climate protection, there's no alternative."

Gabriel has long pushed for airlines to be included in the bloc's carbon trading program.

He told reporters on the sidelines of the conference that the proposal could make long-distance flights 30 euros to 40 euros ($43 to $57) more expensive for travelers. However, airlines could avoid a price hike by using environmentally-friendly technology, added Gabriel.

Ministers water down EU plan

The European Parliament, which has to agree to the ministers' plan for it to take effect, had originally advocated a 2011 start to emissions trading in the aviation industry. EU lawmakers' disappointment over Thursday's deal cast doubts on the likelihood that it will find approval in parliament.

"It is regrettable that the council wants to start so late with emissions trading in aviation," said conservative German MEP Peter Liese. "The European Parliament as co-legislator will not accept that this weak decision comes into force unchanged."

Ministers on Thursday capped the sector's total carbon dioxide output at 100 percent of average emissions between 2004 and 2006, while parliament had proposed a 90 percent limit in relation to the same period.

Thursday's agreement also sees the airlines purchasing 10 percent of available emissions permits when first issued; the European Parliament had set the amount at 25 percent. Guidelines for buying carbon credits in following years have not yet been decided.

Plan under fire from US, environmentalists

Environmentalists have warned that the trading scheme doesn't go far enough.

"This is a Christmas gift to the aviation industry which should be required to do its fair share in tackling climate change," said Delia Villagrasa from the World Wildlife Fund.

The aviation sector is also fiercely opposed. The industry warned earlier this year that it would have to spend over 45 billion euros between 2011 and 2022 to buy up credits in order to meet emissions quotas.

The United States, which has consistently supported voluntary participation in ecological programs instead of enforced quotas, has threatened the EU with litigation should the trading plan go through.