EU Expands Emissions Trading ETS for Airlines

A new EU Emissions Trading System (ETS) reform proposal will expand the scope of activities covered by the ETS for European Airlines. Under the new proposal, airlines’ payments for carbon emissions will expand to flights departing from European Economic Area (EEA) countries to third-country destinations within a 5,000 km radius. This change brings long-haul flights into the ETS system that were previously exempt, including flights to Turkey, the Middle East and North Africa.

A Small Geographic Footprint Expansion

The proposal, however, will not include

flights to the Americas and the Asia-Pacific region, where European flag carriers have substantial operations. The revised scheme will be scheduled for review in 2032, at which time it could expand to flights globally or return to the prior smaller zone, depending on environmental progress.