The European Parliament is poised to signal support for the option of withholding some carbon permits to bolster prices after political parties in the assembly reached a compromise tied to draft energy legislation.

Carbon allowances surged as much as nine per cent to an eight-week high after parliament industry committee members representing all the parties proposed amending a planned energy efficiency law by saying that the European Commission should put forward, “if appropriate,” measures that “may include to withhold the necessary amount of allowances” from auctions.

The European Union's climate chief said on Tuesday she hopes countries opposed to its rules that charge airlines for carbon emissions take their complaints to the U.N.

The two-day 10th BASIC Ministerial Meeting of Brazil, South Africa, India and China on climate change, which concluded on Tuesday, expressed concern over the European Union’s decision to impose car

India, China and other developing nations have criticised the European Union for levying charges on international flights for greenhouse gases emitted by the planes while in Europe.

Basic ministers of environment from China, Brazil, South Africa and India have jointly condemned the unilateral decision of the European Union to impose a carbon tax on airlines in the guise of climate change.

Talking tough on this issue of the EU’s emission trading scheme, environment minister Jayanthi Natarajan minced no words when she said: “Such a unilateral trade action taken by the EU will seriously jeopardise international efforts to combat climate change.”

Air services hit, restored n Avalanche alert issued.

Global planemaker Airbus joined a chorus of concern that a European scheme to charge airlines for carbon emissions risks triggering a full-blown trade war, with implications for plane deals and even Europe's crippling sovereign debt crisis.

The EU's Emissions Trading Scheme (ETS), introduced on January 1, has drawn howls of protest from airlines around the world, with China banning its carriers from taking part.

Global airlines called on Sunday for a U.N.-brokered deal to prevent a row over aviation emissions between China and the European Union spilling into a damaging trade war.

The European Union will not bow to pressure to suspend a controversial scheme to charge airlines for their carbon emissions, but is willing to be flexible in finding a solution to a row that threat