EU Extends Carbon Pricing to Some International Flights but Critics Say It Falls Short

The European Commission has proposed extending its Emissions Trading System to cover international flights departing the EU for the first time, but only those within a 5,000 km radius and not until 2029. This means a flight from Paris to Dubai would face a carbon price, while a flight from Paris to New York would not. Transport and Environment estimates 47% of European aviation emissions remain exempt. The proposal also includes carbon pricing for private jets and free allowances for sustainable aviation fuels, though critics say handing out over 100 million free allowances weakens the price signal airlines need to decarbonize. For shipping, the Commission allocated 110 million ETS allowances to support clean fuels and battery-powered ships, but T&E warns unclear rules may push investment toward biofuels instead of scalable e-fuels. The overall ETS revision slows the annual emissions reduction rate to 3.7% for 2031-2035 and 1.7% after 2036, which critics argue will depress carbon prices and delay clean tech investment. The proposal also allows up to 250 million tonnes of carbon removal credits into the ETS by the late 2030s, a scale-up T&E says has no precedent and no certified projects to back it. Member states now need to approve or amend the proposal. The outcome will determine whether the EU's carbon market drives real aviation and shipping decarbonization or becomes a compromise that delays action on the sector's fastest-growing emissions.