According to BusinessGreen:-
Saudi Arabia has reportedly ordered its national airline not to comply with the EU's carbon trading regulations in protest against the bloc's inclusion of non-EU airlines.
The world's biggest oil producer has notified Brussels of its decision and discussions are currently under way in an attempt to reach a compromise, news agency Bloomberg reported today.
The move would make Saudi Arabia the third country to refuse to submit to the rules after Indian and Chinese airlines refused to share emissions data with Brussels earlier this year. Beijing also froze a $14bn order with Airbus to highlight its displeasure.
India and China were among a group of countries including the US, Russia and Japan who are incensed their airlines will have to pay EU charges, a situation they say contravenes international aviation treaties. Carriers came into the scheme at the beginning of the year and will have to hand in permits to cover their emissions in April 2013. Around 85 per cent of the required permits in the first year will be given away for free.
So that's going well then.