Last week, the European Union proposed extending an exemption of international flights from emissions limits. The exemption was set to end at the beginning of 2017, but may not be enacted for at least another four years. The EU had tried to include international flights in its emissions trading system (ETS) in 2012, but was met with backlash from non-EU countries who said the deal violated their sovereignty.

Last week, the European Court of Justice ruled that the EU was within its right to apply carbon taxes to flights between Switzerland and member states, even though flights to and from other countries outside the bloc are exempt. Lufthansa-owned Swiss International Air Lines brought the case to court, arguing that its treatment under the EU's Emission Trading System infringed on the principle of equal treatment under EU law by treating Switzerland differently from other third countries.

In recent weeks, the European Union has voted in favor of including shipping in its carbon emissions trading system (ETS). The proposal will be addressed in a plenary vote and by the EU’s lawmaking bodies in February, despite concerns from the shipping industry that such a unilateral move by the EU would distort world trade. The proposal follows a 2015 study by the European Parliament that estimates that international aviation and maritime transport will together contribute to 40% of global carbon emissions in 2050.

Last week, both South Korea and the European Union noted they would be taking legal action in responses to “dieselgate,” the nickname given to the scandal on Volkswagen vehicles' nitrous oxide emissions. Last year, it was discovered that Volkswagen had intentionally misreported the amount of nitrous oxides that their cars emit outside of the laboratory. South Korea intends to file criminal charges against Volkswagen executives in the South Korean unit for falsely advertising their vehicles' emissions.

The European Union Industry Committee voted in favor of reforming the EU’s carbon market. The EU’s emissions trading system, a cap-and-trade market for carbon emissions, covers 45% of the EU’s greenhouse gas emissions. Companies either buy emissions allowances or are given them free of charge; fines are imposed if a company exceeds its emissions allowance.

The European Union’s Forest Law Enforcement, Governance, and Trade Action Plan is a trade policy intended to reduce the importation of illegally logged timber and to promote sustainable, legal forest management. In 2013, after 6 years of negotiations, Indonesia signed a Voluntary Partnership Agreement (VPA) under the Plan, agreeing to export only verified legal timber products. This past spring, Indonesia entered the final stages of fulfilling its VPA requirements, and in November it will become the first country to export licensed wood products to the EU.

On Friday, European Union ministers agreed to ratify the Paris Agreement, a commitment that could help push the international agreement into effect. And India ratified the agreement over the weekend. The European Parliament will vote on the decision this week, which then needs to be endorsed by the Ministers. The Agreement will enter into force 30 days after at least 55 countries accounting for at least 55% of global carbon emissions have ratified the accord.

Morocco has suspended the import of waste products to be burned for energy, mainly arriving from Europe. Mustapha Khalfi, Morocco’s Minister of Communication, stated "We have decided to suspend all imports of trash and to not use the shipment already imported pending the results of an investigation." The protests by environmentalists against the practice arose after it was revealed that the cement firm Lafarge Maroc imported 2,500 tons of Italian garbage to fuel production.

Advocate General Henrik Saugmandsgaard Oe upheld the European Union’s right to apply carbon taxes to flights to and from Switzerland. Under the EU Emissions Trading System (ETS), all airlines within the European Economic Area (EEA) are subject to certain carbon allowances and purchasing schemes. Lufthansa-owned Swiss Air brought a case to the European Court of Justice claiming unfair and unequal treatment through the application of carbon taxes and permits to its flights. Swiss Air is seeking recovery of over 600,000 carbon permits, worth millions of euros.

Authorities in the United Kingdom are taking action against 14 companies that are suspected of sourcing illegal timber from Cameroon. Cameroon’s forests are one of the most biodiverse in the Congo Basin, but they are being decimated at a rapid pace due to illegal logging. Pursuant to the European Union Timber Regulation (EUTR), British authorities have started the first steps in targeting 14 companies that are suspected of sourcing the illegal timber, sending 6 letters of remedial action, 7 letters of warning, and 1 letter of advice.