31 December 2010, with an intermediate target of 2% by the end of 2005. In February 2007 the European Commission proposed that, from 2011, suppliers will have to reduce carbon emissions per unit of energy by 1% a year from 2010 levels, to result in a cut of 10% by 2020 Stricter fuel standards to combat climate change and reduce air pollution. Flights Airlines can be charged for their greenhouse gas emissions on flights to and from Europe according to a court ruling in October 2011. Historically, EU aviation fuel was tax free and applied no VAT. Fuel taxation in the EU has been permitted since 2003 under the Energy Taxation Directive for domestic flights and on intra-EU flights on the basis of bilateral agreements. In 2018 Germany applied 19% VAT on domestic airline tickets. Many other member states had 0% VAT. Unlike air travel VAT is applied to bus and rail, which creates competitive distortions, artificially stimulate demand, drive uncontrolled growth in aviation emissions and constitute unjustifiable subsidies. Air fuel tax 33 cents/litre equal to road traffic would give €9.5 billion. Applying a 15% VAT in all air traffics within and from Europe would be equal to €15 billion. Industry The European Union Emission Trading Scheme, introduced in 2005 under the 2003 Emission Trading Directive, sets member state-level caps on greenhouse gas emissions for power plants and other large point sources. Consumer goods A further area of energy policy has been in the area of consumer goods, where energy labels were introduced to encourage consumers to purchase more energy-efficient appliances. External energy relations Beyond the bounds of the European Union, EU energy policy has included negotiating and developing wider international agreements, such as the Energy Charter Treaty, the Kyoto Protocol, the post-Kyoto regime and a framework agreement on energy efficiency; extension of the EC energy regulatory framework or principles to neighbours (Energy Community, Baku Initiative, Euro-Med energy cooperation) and the emission trading scheme to global partners; the promotion of research and the use of renewable energy. The EU-Russia energy cooperation will be based on a new comprehensive framework agreement within the post-Partnership and Cooperation Agreement (PCA), which will be negotiated in 2007. The energy cooperation with other third energy producer and transit countries is facilitated with different tools, such as the PCAs, the existing and foreseen Memorandums of Understanding on Energy Cooperation (with Ukraine, Azerbaijan, Kazakhstan and Algeria), the