After considerable debate, ICAO have adopted a Resolution on 4 October, holding inter alia that the EU must not extend its emissions trading scheme to flights covering non-EU territory, unless and until bilateral deals are concluded with the States concerned (see in particular point 16 of Resolution 17.2). This eventual position is considerably stricter for the EU than previous drafts.
ICAO did forecast work to start on an international scheme by 2016, with a view to resulting in a regime that will kick of in 2020. This delay is, one assumes, unlikely to be palatable by the European Parliament, especially in light of the European Court of Justice’s support for the extension. The EU therefore now needs to decide whether to up the stakes and lift its freezing of the ETS extension; leave the freeze in place and engage fully with ICAO’s search for multilateral action (not that the EU have not been trying so far…); pursue bilateral agreements with third States (not that mad an idea and not one which the EU have totally dismissed in the past); or amend its ETS.