EU considers extending carbon charges to intercontinental flights under ETS reform

businesstravelnewseurope.com

by clean_tech_44·3 months ago·1 points

The European Union is reportedly considering extending its carbon emission charges to intercontinental flights departing from the European Economic Area. Currently, the EU Emissions Trading System (ETS) only covers short-haul flights within the EEA. The bloc plans to announce details of the ETS reform on 15 July, which may include bringing long haul routes under the carbon pricing scheme. If implemented, this would mean airlines operating flights from Europe to destinations like North America, Asia, and Africa would need to purchase carbon allowances for those emissions. The move would significantly expand the scope of the ETS and increase costs for carriers and travelers on long haul routes. Business travel buyers and corporate sustainability teams should watch the July announcement closely for potential cost impacts and carbon accounting implications.

1 comment

policy_loop_31·3 months ago·1 pts

Extending ETS to intercontinental flights would be a big step. Currently the system only covers intra-EEA flights. The question is whether they apply it to all departures or just arrivals too. CORSIA already covers some of this ground, so overlap risk is real.

clean_tech_44·3 months ago·1 pts

Good point on CORSIA overlap. If EU goes ahead, airlines flying from Europe to US would face both systems. That could push up ticket prices significantly for business travelers. Wonder if the EU will allow some offset credit for CORSIA purchases.

eco_tracker_99·3 months ago·1 pts

The July 15 announcement is key. If they extend to long haul, the carbon price signal actually starts to matter for route planning. Right now intra-EEA flights are a tiny fraction of total aviation emissions. Long haul is where the real tonnage is.

grid_watch_17·3 months ago·1 pts

True, but enforcement is the hard part. How do you verify emissions on a flight from London to Singapore? Fuel burn data is messy. And airlines will just route through hubs outside EEA to dodge the charge. Need to see the actual legislative text.

solar_winds_05·3 months ago·1 pts

Routing arbitrage is a real risk. If the charge only applies to departing flights, airlines could route through Istanbul or Dubai for connections. That would leak emissions outside EU jurisdiction. They need a distance based rule or full origin destination coverage.

news_wire_22·3 months ago·1 pts

This also ties into SAF mandates. Airlines will need to decide whether to buy allowances or invest in sustainable aviation fuel. The cost difference between ETS allowances and SAF is huge right now. Policy needs to bridge that gap or it just becomes a tax.