As aircraft trace graceful arcs across the sky, few passengers consider the climate impact hidden behind this modern freedom of flight. The aviation industry's carbon emissions have emerged as a pressing global concern, yet recent European Union actions risk undermining hard-won international agreements on aviation decarbonization.
EU ETS: A Controversial Expansion
The European Parliament's position on reforming the EU Emissions Trading System (EU ETS) contains some positive elements but threatens to destabilize the fragile international consensus on aviation emissions reduction. While the EU will continue applying its carbon market only to intra-European flights, a proposed review would expand coverage to all flights entering or leaving the EU after 2026 unless the International Civil Aviation Organization's (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) receives "positive assessment."
This approach effectively holds CORSIA hostage and risks creating market distortions. The EU ETS was originally designed for stationary installations within Europe. Its application to aviation—a highly mobile, international business sector—has long been contentious. Governments worldwide, including European nations, committed through ICAO to establish CORSIA as the sole global market-based mechanism for aviation emissions reduction.
Undermining Global Progress
Last year saw significant progress when ICAO, with EU support, modified CORSIA's baseline and raised its ambition level. Despite this advancement, EU institutions continue introducing new conditions to previously agreed terms, jeopardizing the global approach needed to address this transnational issue.
Airlines express concern about the impartiality of any EU assessment of CORSIA, given Brussels' historical preference for its own ETS. CORSIA possesses greater potential for global emissions reduction than the EU ETS, and its collapse would have far-reaching consequences—not just for near-term emissions cuts but also for international climate cooperation and aviation's path to net-zero by 2050.
Competition Concerns and Missed Opportunities
Potential market distortions present another serious concern. To maintain fair competition that benefits all consumers, the ETS must not disadvantage airlines from particular regions. Meanwhile, practical emissions reduction measures like the Single European Sky initiative—which could make European air traffic management more efficient and reduce emissions by up to 10%—continue to be overlooked amid political posturing about the ETS.
One positive development is the creation of a free allowance pool to incentivize sustainable aviation fuel (SAF) use, recognizing the need to bridge the price gap between conventional jet fuel and cleaner alternatives.
The Path Forward
The crucial step requires decoupling EU ETS expansion from unilateral demands on CORSIA. EU member states should honor their repeated ICAO commitments to implement CORSIA successfully and encourage its global adoption. Holding CORSIA to ransom fails this responsibility.
As the aviation industry stands at a climate crossroads, the choices made today—whether to pursue fragmented regional approaches or strengthen global cooperation—will determine whether this vital economic sector can achieve sustainable flight for future generations.