The International Air Transport Association on Wednesday criticised European Union proposals to include the aviation industry in a scheme that would require airlines to trade emission allowances.

"Unilaterally bringing aviation into the European Emissions Trading Scheme (ETS) seeks to limit mobility and adds 4.2 billion euros (6.6 billion dollars) to the cost of travel. But reducing emissions is more effective than charging for them," said IATA chief Giovanni Bisignani in a statement.

He called on European governments to cast aside their 'tunnel-vision' on emissions trading, reiterating that emissions cuts could be achieved through a better solution of uniting Europe's 35 air navigation service providers, thereby optimising routes and reducing delays.

The so-called Single European Sky project could save up to 12 million tonnes of carbon dioxide, said IATA.

"Europe must refocus. First, it must put aside its ETS proposal. Making decisions in the middle of an energy crisis for an ETS to be implemented in five years is crazy," Bisignani said.

The emission taxes would fill government coffers but "they do little for the environment", he added.