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.

Hopes are fading that climate talks in Qatar late this year will make even modest progress towards getting a new globally binding climate deal signed by 2015, as preliminary negotiations in Germany this week have left much work to be done.

The fear is that if work plans and agendas are not set by the end of this year at the latest it could have a knock-on effect, holding up the entire effort to avert potentially devastating global warming.

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.

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.

The price of carbon credits is likely to double this year, due to a recovery in demand from the European Union.

A recent report by Barclays Capital, the global consultancy firm, forecast the Certified Emission Reduction (CER) price to surge 92 per cent in the first half of this year. Indian analysts estimate it would almost double before the end of 2012. Currently, a CER unit for near-month delivery on the European Energy Exchange is quoted at 3.55 euros.

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.

Tough new limits on the maximum sulphur content of shipping fuels will come into effect in Europe at the end of the decade, after EU governments agreed on draft legislation on Wednesday.

Air pollution from marine fuels with a high sulphur content is estimated to cause 50,000 premature deaths a year in Europe, the European Parliament has said.

"This is excellent news for our health and the environment, especially in ports and coastal areas," EU Environment Commissioner Janez Potocnik said in a statement.

A yearly review of countries' greenhouse gas emissions cut pledges under an extension to the global climate pact the Kyoto Protocol could be a way to raise climate ambitions, the European Union's lead climate negotiator said on Wednesday.

Negotiators from over 180 countries are meeting in Bonn, Germany, until Friday to work towards getting a new global climate pact signed by 2015 and to ensure ambitious emissions cuts are made after the Kyoto Protocol expires at the end of this year.

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.

Europe yesterday warned at climate talks in Bonn that efforts to forge a new global pact to avert environmental disaster were in danger of floundering, and some pointed fingers at China.

Nine days into talks meant to set the stage for a United Nations gathering in Qatar in December, where countries must adopt an amendment to the Kyoto Protocol on climate change, negotiators complained that procedural bickering was quashing progress hopes.