The European Commission is moving to expand the Emissions Trading System (ETS) to include international flights departing from the EU. This policy shift aims to close a loophole where only intra-EU flights are currently priced, potentially increasing carbon revenues to billions of euros. The proposed extension would apply to both EU and non-EU carriers to ensure a level playing field. However, the move is expected to create diplomatic friction with the United States and face pushback from airlines already struggling with high fuel costs.
