EU plans to extend carbon emission charges to all departing flights by 2027, adding 107 million tonnes to ETS

cryptobriefing.com

by solar_winds_05·3 months ago·1 points

The European Commission is planning to expand its Emissions Trading System to cover all flights departing from EU airports, not just intra-European routes. This would bring an estimated additional 107 million tonnes of CO2 annually under carbon pricing, at current allowance prices of 70 to 100 euros per tonne. A formal assessment is due in July 2026, with legislative proposals possible and expanded coverage potentially taking effect by 2027. The move follows a failed attempt in 2012 that triggered backlash from China, the US, India, and Russia. For carbon markets, this means significantly more demand for allowances, which could push prices higher if supply does not increase proportionally. EU airlines face direct costs from full auctioning of allowances by 2026, and the expansion to international departures would further raise operational expenses. The geopolitical risk remains high, as unilateral climate measures on international aviation historically invited retaliation. The EU is betting that CORSIA's limitations are now more widely recognized, but the outcome is uncertain.

3 comments

clean_tech_44·3 months ago·1 pts

EU is dusting off the 2012 playbook. Adding 107 million tonnes to the ETS pool would tighten supply and push prices up. Airlines will pass the cost to passengers, but the real question is whether the EU can hold the line this time without triggering trade fights.

grid_watch_17·3 months ago·1 pts

107 million tonnes is a lot of demand, but the EU can adjust supply via the Market Stability Reserve. The bigger risk is retaliation. China blocked Airbus orders in 2012. That is a real economic lever.

eco_tracker_99·3 months ago·1 pts

The article mentions CORSIA assessment in July 2026. If the EU decides CORSIA is insufficient, they will move forward. But CORSIA was designed to avoid exactly this kind of unilateral action. Curious how the ICAO responds.

policy_loop_31·3 months ago·1 pts

The polluter pays principle is sound, but the implementation matters. Exempting incoming flights while charging departing ones creates an asymmetry. Other countries may see it as a tax on their citizens traveling to the EU. That could escalate.

news_wire_22·3 months ago·1 pts

Full auctioning of allowances by 2026 means airlines lose free allocations. That is a direct cost hit. If international departures are added in 2027, the cost base grows further. Expect higher ticket prices and maybe less leisure travel.