Says continent has to do business with China, Russia, India, and Latin America, all of whom are opposed to the levy

Rising tensions with India and China over the European Union's "arrogant" law on carbon emissions could rob the region of the markets that can rescue it from economic malaise, airline leaders said on Thursday. They also said they had prepared contingency plans for a possible exit of Greece from the euro, as part of the industry's extensive crisis management, and they were worried about a domino effect of more countries' being forced out of the currency bloc, with implications for all businesses.

Germany has asked for discussion on deeper EU carbon emissions cuts to be put on the agenda at a meeting of environment ministers in June, EU sources said.

If agreed, a more ambitious target could help to spur the European Union's carbon market, which has sunk to record lows.

Previous debate of bigger carbon cuts, however, has been difficult, with coal-reliant Poland objecting that they could damage its economy.

Two large overseas investors in the UK energy market have joined the chorus of criticism of the government's new energy bill.

The German-based E.ON, one of the big six electricity providers in Britain, said national subsidy schemes for renewables such as Britain's contracts for difference had helped "bust" key European carbon reduction initiatives.

And Norway's Statkraft, said on Wednesday it would not be able to press the button on a giant £30bn offshore wind farm on the Dogger Bank until ongoing "uncertainty" was lifted.

An aviation conference in Beijing on Wednesday saw leaders of the industry voice strong concern over a European Union (EU) plan to tax international airlines for carbon emissions, and an EU official signal a more flexible attitude from the bloc.

Chinese and US aviation authorities and industry associations reiterated opposition to the EU Emissions Trading Scheme (ETS) at the 2012 China Civil Aviation Development Forum, urging the EU to take a global and comprehensive approach to the issue.

China's civil aviation authority on Wednesday reiterated its opposition to the European Union's imposition of an emissions trading scheme on global aviation, despite a threat from the EU last week to punish Chinese airlines for not cooperating.

As talks have so far proven futile, the parties involved expect that a framework of market-based measures, which will be submitted next year to the International Civil Aviation Organization Assembly for review, might put an end to disputes over the issue.

Bavaria's stock exchange will abandon its carbon emissions certificate trading operations in the EU-traded CO2 market on June 30 after volumes in Europe "plunged to practically zero" in recent months, it said on Tuesday.

The EU's emissions trading scheme (EU ETS) limits the carbon dioxide emissions of the 27-nation bloc's factories and power plants and covers nearly half of EU emissions.

Prices in the ETS have shed around 60 percent of their value over the past year due to market worries about the growing supply glut and weak demand.

Kisan Board Pakistan (KBP) has urged the government to take immediate notice of Indian efforts of buying carbon credits for its seven hydropower projects to be built on Sindh, Chenab and Jhelum rivers.

The Board said that this effort of India is aimed at to give legal cover to its water projects planned on rivers of Pakistan.

EU nations should pledge that funds from paying for airline emissions will help poor countries deal with global warming, the bloc's climate chief said on Tuesday, after finance ministers stopped short of a firm commitment.

Crisis in Greece and the euro-zone topped the agenda at the ministers' talks in Brussels, but they also agreed to text on climate funding, which only promised hard cash until the end of the year.