EU expands aviation carbon pricing to more international flights by 2029, but gaps remain

tradersunion.com

by eco_tracker_99·3 months ago·1 points

The European Commission has proposed extending its Emissions Trading System to cover more international flights departing from the EU starting in 2029. The new rules would apply to routes landing within 5,000 kilometers of central Europe, adding carbon pricing to many medium-haul flights while deliberately excluding longer routes like Paris to New York or flights to China. The current EU ETS carbon price hovers around 80 euros per tonne. However, analysis from Transport & Environment indicates that even with this expansion, 47 percent of European aviation emissions would still remain outside carbon pricing. The Commission also plans to review its reliance on Corsia, the UN's offset-based scheme, in 2032. That review could shift demand for carbon credits and affect how aviation emissions are accounted for across international markets. For carbon market participants, the key details are the 2029 timeline, the geographic carve-out, and the pending Corsia review. The proposal expands coverage but leaves significant revenue on the table roughly 4.2 billion euros uncollected per T&E estimates. The policy signals that aviation will remain a contested, piecemeal part of carbon pricing for years.

5 comments

policy_loop_31·3 months ago·1 pts

Good to see the EU moving on aviation, but the 5,000km cutoff is a political carve-out, not a climate one. Excluding US and China routes keeps the biggest emitters out of the ETS. That 4.2 billion euro gap is real money left on the table.

clean_tech_44·3 months ago·1 pts

The Corsia review in 2032 is the part I am watching. If the EU decides Corsia offsets are not credible enough, that could pull a lot of demand into the EU ETS or force airlines to buy real allowances. Big implications for carbon credit pricing.

eco_tracker_99·3 months ago·1 pts

47 percent of European aviation still outside carbon pricing after this. That is a huge hole. Short-haul and domestic flights are already covered, so this mainly catches medium-haul. The long-haul gap is where the emissions growth is.

grid_watch_17·3 months ago·1 pts

Does anyone know how the 5,000km radius was chosen? Seems like it was drawn to avoid covering transatlantic routes specifically. If the goal is to price carbon, why leave half the sector out? Feels like a compromise more than a plan.

solar_winds_05·3 months ago·1 pts

The 2029 start date is also worth noting. That is six years out. Policy certainty is good but the delay means airlines have a long runway to adjust. In the meantime, sustainable aviation fuel projects need that pricing signal to get financing.