The European Commission has proposed extending the EU emissions trading system to departing international flights from 2029, but with a key exemption for routes over 5000 km. This spares Qantas' planned Project Sunrise ultra-long-haul services from Sydney to cities like Paris or London from the full carbon cost, protecting their business case. Aviation expert Peter Harbison notes the exemption avoids higher ticket prices and weakens the case for adding continental European destinations. The policy split means shorter-haul flights within the 5000 km radius will face the carbon price, while ultra-long-haul routes remain outside it. For carbon market watchers, this is a concrete example of how carbon border adjustments get shaped by political and economic pressure. Airlines with long-haul networks gain a regulatory advantage, while the EU's attempt to price aviation emissions hits a geographic limit.
