The European Union’s Emissions Trading Scheme has suffered a further set back, with the United States Senate passing a bill shielding American airlines from the scheme.

At present, the ETS requires airlines to buy permits for emissions generated on flights to, from and within the European Union.

If an airline uses more than its allowance, it has to buy carbon credits, with the state aim of cutting carbon emissions in Europe.

Initially applied to utilities and industry, the scheme was rolled out to cover the aviation sector in January this year.

However, the United States, Russia, India and China have all expressed their anger at the scheme, calling for the implementation of a global platform to tackle climate change.

Nicholas Calio, president of United States trade group Airlines for America said: “US airlines should not be subjected to this illegal scheme that amounts to little more than a cash grab for the European Union, as none of the funds collected are required to be used for environmental purposes.”

The House of Representatives previously passed a similar bill.