The EU plans to include flights to non-European destinations in its emissions trading system starting in 2029, citing the ineffectiveness of the international CORSIA offset mechanism. However, flights to the US and China will remain exempt from the EU ETS under the current proposal. This exemption covers two of the largest aviation markets by carbon emissions. The article explains the reasoning behind the carve-out and what it means for the overall effectiveness of the EU's carbon pricing scheme for aviation. It is a key read for anyone tracking carbon market expansion and sectoral coverage.
