The European Commission on Friday proposed extending its carbon market to international flights arriving in Europe from destinations within 5,000 km from 2029, as part of its long-awaited overhaul of the bloc's Emissions Trading System (ETS).

Routes such as Frankfurt–Dubai and Frankfurt–Istanbul will be brought into the carbon market while longer sectors such as Frankfurt–Tokyo will be excluded, according to the Commission proposal. Landing flights from the United States and China will be exempt.

Exemptions for domestic services to the EU's outermost regions, including routes linking mainland Spain with the Canary Islands, will remain in place until the end of 2035.

Commission officials said the approach would create a fairer competitive environment for European carriers by reducing advantages enjoyed by rival hub airports outside the EU.

The revised ETS is considering measures to accelerate progress toward the sector's climate goals, meaning flights landing in the European Economic Area (EEA) would have to start paying for the CO2 emissions associated with their environmental footprint from 2029.