EU ministers are poised to agree a deal on aviation that would see aircraft emissions continue to rise and possibly hand a cash windfall to the airlines.

BBC News understands the industry will be allowed to increase emissions as much as it wants by the European environment council. Aviation is the fastest growing source of greenhouse gases. But Europe's environment ministers look set to reject a plan for a strict cap on emissions from planes. Instead, airlines will be given a set number of permits to pollute.

Instead, airlines will be given a set number of permits to pollute.

If they overshoot their limit they will be allowed to buy spare permits from firms who have managed to cut emissions elsewhere - manufacturing industry, for instance.

The ministers are expected to say this is rational, as it does not matter where emissions cuts are made - campaigners will call it a cop-out.

The decision on Thursday is not final - but it does show goverments are reluctant to curb one of the boom areas of their economy - however damaging it is perceived to be.

Luxury car makers Porsche, Mercedes-Benz and BMW will be thrown a lifeline when the European Union releases its stringent exhaust emissions law tomorrow. The EU Commission has indicated that car makers will be allowed to trade carbon dioxide credits between themselves. The companies will have to pay for carbon dioxide credits to make up their shortfall or pay the fines levied on companies not meeting the limits.

The Social Democrats are calling for sanctions on energy-intensive U.S. export products if the Bush administration continues to obstruct international agreements on climate protection, the party's leading environmental expert said Tuesday.

The move, after the United Nations climate conference last week in Bali, Indonesia, has won strong support from the Greens and other leftist groupings in the European Parliament. Those factions will renew their bid to impose such levies when the Parliament reconvenes next month.

Neither Kyoto nor Bali will solve our global energy emission problems. According to a Princeton University study a few year ago the world could hold its carbon dioxide emissions flat if 700 nuclear power plants were built around the globe, for they do not increase global warming. But they are not favored by the climate establishment, and so are not a part of the Bali solution.