Now watch as EU nations quickly develop and roll out "clean" solar-powered airplanes

AFP: EU forces CO2 caps on airlines

LUXEMBOURG (AFP) — EU nations on Friday agreed to bring airlines into the fight against global warming from 2012, though promising their contribution won't be too damaging economically to the fragile sector.

From January 2012 all airline companies operating in or out of an EU country, including non-European carriers, will have to limit emissions to 97 percent of 2005 levels.

From 2013 that figure will dip to 95 percent with further reductions envisaged later.

Airlines are furious about the plans which they say threaten their very survival as they struggle to cope with recent high fuel prices and have warned that it could spark trade wars with other countries.

The plans have also sounded alarm bells in Washington which has raised the prospect of launching litigation if Europe goes ahead with them.

According to the plans, airlines will have to meet the pollution targets either by reducing their emissions or by buying carbon dioxide credits from other industries with surpluses.

Additionally, airlines will have to buy 15 percent of their emissions allowances through auctions, although they will receive the rest for free.