A new report analyzed the impact of extending the EU Emissions Trading System (ETS) to cover long-haul flights. The main finding: the added carbon cost on intercontinental routes would be small enough that airlines would barely increase ticket prices. The analysis suggests the policy could generate billions in additional revenue for climate programs without significantly hurting demand for air travel. The report challenges the assumption that expanding the ETS would make flying noticeably more expensive for passengers. Instead, it frames the move as a low-impact way to close a major gap in carbon pricing. Currently, the ETS covers flights within the European Economic Area but not long-haul routes, which account for a large share of aviation emissions. If policymakers want to price aviation emissions more broadly while keeping ticket price increases minimal, this report provides evidence that the trade-off is manageable. The revenue potential also makes it a politically attractive option for funding green investments.
