A battle over the details of the Commission's proposal to include aviation in the EU ETS is likely to take place in the European Parliament ahead of a key first-reading vote on 13 November 2007.
Past debates in sectoral committees have revealed largely diverging positions on the following points of the text:
- Start date: While the environment and economic committees have called for the sector to be included in Europe's carbon cap-and-trade system as early as 2010 - one year earlier than the Commission had initially proposed, the transport and trade committees are siding with airlines in saying that 2012 should be the start date.
- Baseline and cap: The Commission had initially proposed that the cap should equal to average emissions recorded by the airline sector between 2004 and 2006. However, the environment committee voted that it should be set at just 75% of those levels, with the most extreme members calling for it to be set at 50% of 2004-2006 levels, which would be equivalent to a return to 1990 figures, as is required from other industries already included in the ETS. The transport committee nevertheless said the overall cap should be set at 110% of the average between 2007 and 2009 – which would thus allow airlines to increase their emissions compared to current levels.
- Auctioning: MEPs in the environment committee also decided that half of the pollution permits that are to be issued under the scheme be auctioned, in order to avoid airlines making so-called 'windfall profits' when passing on the costs to air travellers. The transport committee, on the other hand, suggested that airlines be given 80% of this quota for free. The Commission had initially recommended that only 10% of the permits be auctioned.
MEPs will also have to decide whether to approve an environment committee proposal to multiply the cost of all CO2 permits bought by airlines by two if the Commission fails to develop legislation before 2010 to address Nitrogen Oxide (NOx) emissions.



