The report, backed by members of Parliament[s environment committee in a second reading vote on 27 May, states that airlines operating in Europe should not be allowed to continue emitting the same levels of greenhouse gases as the period 2004-2006 after 2012 – as was proposed by the Council last April. Instead, it demands a 10% cut by 2011. Further reductions would be then implemented as of 2013, in a linear manner so as to achieve emission reductions of 20% in 2020 in comparison to 1990.
In further contrast to a compromise achieved among European ministers, MEPs insisted that at least 25% of available pollution permits be auctioned, rather than handed out for free (EurActiv 14/11/07). The aim is to make sure airlines do not make windfall profits by passing on non-existent costs to their passengers. The share of traded allowances would then be increased in 2013, when the revised EU Emissions Trading Scheme (ETS), which also covers industrial activities, enters into force.
Other elements of the report include:
- an "efficiency clause", which states that airlines may only buy emission permits from other sectors or projects in developing countries if they first meet certain fuel efficiency standards;
- earmarking of revenues generated from the auctioning of emission permits. MEPs decided that the extra cash is to be used for research on improving efficiency in the aviation sector, but also for investment into 'green' modes of transport, such as trains and buses, to reduce some of the burden on citizens. Funds would also go towards technical assistance to help developing countries to tackle and adapt to climate change. But national governments are fiercely opposed to such a proposal, arguing that they should have the freedom to decide what to do with the funds.
- a "multiplier" requirement, which states that the cost of all CO2 permits bought by airlines be multiplied by two unless the Commission develops legislation to address additional climate impacts caused by Nitrogen Oxide (NOx) emissions from aircraft;
- a clause enabling member states to maintain or introduce complementary measures, including taxes, to address the sector's total impact on climate change, and;
- exemptions for humanitarian, emergency and military flights. Private business jets, including those used by members of the monarchy or government, would on the other hand be covered by the scheme.
German MEP Peter Liese (EPP-ED), who is in charge of the dossier, said he would try to reach an agreement with the Council over the coming weeks.




