In the light of limited progress by ICAO, the European Union (EU) decided to include internation aviation in is existing EU emissions trading system (ETS) with effect from 1 January 2012. With the aim of avoiding market distortions and loss of competitive disadvantage, the EU prefers to include flights to and from Eu territory. The application to non – EU as well as EU carriers was, in their view, necessary to meet the Chicago Convention provisins on equal application. However, the issues of extua – territalty raised considerable concerns outside Europe, taking the EU to the verge of a trade war with the USA and China. Likewise, different interpretation of the implication of the UNFCCC principle of common but differentiated responsibilities and respective capabilities (CBDR&RC) in relation to the ICAO principle of equal treatment raised the political temperatures. In November 2012, the European Union decided to stop the clock on the application to routes beyond European Union decided to stop the clock on the application to routes beyond Europe pending the outcome of negotiations on future – lateral emissions controls at the ICAO Assembly in September 2013.