Key facts
- The European Commission proposed extending its carbon market to international flights arriving in Europe from destinations within 5,000 km, starting in 2029.
- Flights from the US and China will be exempt.
- Private jets departing and landing within the EU will also be covered.
- Free emissions allowances for industrial companies will be conditional on investment plans and verified emissions reductions.
- At least 50% of national ETS revenues should be reinvested in sectors covered by the carbon market.
The European Commission has put forward a proposal to integrate international flights arriving in Europe into its Emissions Trading System (ETS) starting in 2029. This expansion will cover flights from destinations within 5,000 kilometers, aiming to level the playing field for European airlines and address rising aviation emissions. Routes such as Frankfurt–Dubai and Frankfurt–Istanbul will be included, while longer sectors like Frankfurt–Tokyo, and flights originating from the United States and China, will remain exempt. Exemptions for flights to the EU's outermost regions are set to continue until the end of 2035.
Climate Commissioner Hopke Woekstra highlighted that aviation is the only major sector where emissions are increasing, and the EU faces competitive disadvantages due to subsidies for non-EU airlines. The proposal also extends coverage to private jets. The current ETS has covered flights within the European Economic Area (EEA) since 2012, with international aviation largely falling under the International Civil Aviation Organization's (ICAO) CORSIA scheme.
EU officials noted a legal obligation to consider expanding the ETS if the international framework proves insufficient by 2032. While acknowledging the political difficulty, they emphasized that the EU must act to meet its climate goals. The revised ETS also includes changes to free emissions allowances for industrial companies, making them conditional on decarbonisation investment plans and verified emissions reductions, transforming them into 'investment allowances'. Brussels also aims for at least 50% of national ETS revenues to be reinvested in sectors covered by the carbon market, including aviation, maritime transport, and energy-intensive industries.