The International Air Transport Association (IATA) has called for the United Nations to broker a deal between airlines and the European Union (EU) on the EU Emissions Trading Scheme.

It comes days after China banned its airlines from joining the scheme, which levies a charge on flights in EU airspace based on carbon emissions.

Other nations such as the US and Canada have also opposed the plan.

IATA said if not resolved quickly, the issue could hurt all parties involved.

"I very much hope of course that we are not seeing the beginning of a trade war on this issue and eventually wiser counsels will prevail," said Tony Tyler, Director General of IATA.

'Only way forward'

The United States tried to block the introduction of emissions charges late last year, in a case heard by the European Court of Justice. However, the court ruled that they were legal.

Since then the US has called for the issue to be dealt with by an international aviation body. It, along with Canada, says the charges levied under the scheme violate climate change and aviation pacts.

China, which has been amongst the scheme's most vocal opponents, says it could cost Chinese airlines as much as 95m euros ($124m, £79m) in extra annual costs.

Mr Tyler said given the opposing stands taken by the various parties, the International Civil Aviation Organization (ICAO), the United Nations' aviation standards agency, was the appropriate body to help reach a solution.

"The International Civil Aviation Organization is the only way forward," he said.

"I sense a greater appreciation in Europe that a global solution under ICAO may take time, but it will produce a superior result."

Mr Tyler called on the EU to play a greater role in the discussions at the ICAO aimed at finding a solution to the issue.

Source :bbc.co.uk