The European Union is preparing to do something it tried once before, and got its hand slapped for. The European Commission plans to extend its Emissions Trading System to cover flights departing EU airports for international destinations, not just the intra-European routes currently subject to carbon pricing.
What the EU is actually proposing
Right now, the EU ETS only applies to flights within the European Economic Area. Think Paris to Berlin, not Paris to New York. The proposed expansion would capture emissions from all outgoing flights, which account for a significant majority of aviation emissions tied to EU airports.
A formal assessment is scheduled for July 2026, at which point the Commission will evaluate whether CORSIA, the International Civil Aviation Organization’s carbon offsetting scheme, is doing enough to justify keeping international flights outside the EU’s pricing regime. Legislative proposals could follow, with expanded coverage potentially taking effect by 2027.
The EU has already been tightening the screws on aviation emissions through its Fit for 55 climate package. Free carbon allowances for airlines have been shrinking: a 25% reduction in 2024, 50% in 2025, with full auctioning expected by 2026.
