The decision to include aviation in the European Union's Emissions Trading Scheme was today welcomed by Environment Secretary Hilary Benn.

Mr Benn said that today's groundbreaking European Council agreement, which saw all 27 EU countries support the proposal, is a major step forward for the fight against climate change.

Under the new agreement, emissions from aviation will be capped at 2004-06 levels so that any further growth in aviation emissions will need to be cancelled out by emission reductions in other sectors. As with other industries in the Emissions Trading Scheme, airlines will be able to trade their emissions and be subject to a 'polluter pays' policy.

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The proposal now goes to the European Parliament, with the aim to reach agreement in 2008.

Hilary Benn said: "By including aviation in the EU Emissions Trading Scheme with a tough cap, we are ensuring that airlines which do go above their limit will need to cancel out their emissions elsewhere through the trading scheme.

"I welcome this agreement, which the UK has long campaigned for. This immediate step following Bali demonstrates our commitment to making sure that aviation plays its part in tackling emissions."

Transport Secretary Ruth Kelly said: "The inclusion of aviation into the EU emissions trading scheme is a major step forward in ensuring that the climate change impacts of aviation emissions are addressed. I welcome this step towards the implementation of a scheme which will see the aviation sector take responsibility for its climate change emissions."

It will come into effect in 2012, applying to all flights between EU countries and flights taking off from or landing in an EU country. This will apply to the entirety of intercontinental flights, not simply the part of the journey in European airspace.

Airlines will be regulated by the EU country in which they run the majority of their flights. Any airline in breach of the regulation will face legal action.

(GK/SP)