THE new Emission Trading System (ETS) launched by the EU may cause conflict between major economies. The US Senate is pondering over a bill that would direct US Department of Transportation (DOT) to prohibit US airlines from participating in the ETS. A similar bill was passed by the US House of Representatives. If passed in the senate the bill will be combined with the bill passed in the House it would be presented to the president.

More than 43 countries have indicated their opposition to aviation's inclusion into the EU's ETS. IATA is calling for all sides to negotiate at the International Civil Aviation Organization (ICAO), which is working on a framework for a global scheme for addressing aviation carbon emissions.