The European Union is set to include international flights in its Emissions Trading System starting in 2029, according to a review of the carbon market. This expansion would require airlines to purchase allowances for emissions on routes to and from the EU, extending the current scheme that only covers intra-European flights. The policy aims to align aviation with the bloc's broader decarbonization targets. Under the proposed changes, airlines would face higher operating costs, which could be passed on to passengers through ticket prices. The EU plans to phase in the requirements gradually, with a portion of allowances initially allocated for free. The review also considers using revenues from allowance auctions to fund clean aviation technologies and sustainable aviation fuels. Critics argue the timeline is too slow and that free allowances weaken the price signal, while industry groups warn of competitive disadvantages for European carriers. The final rules depend on negotiations between EU institutions and member states.
