Fifteen major European airlines including Lufthansa, Air France KLM, IAG, and Ryanair have sent a joint letter to EU leaders asking them to drop plans to expand the EU Emissions Trading System to cover flights beyond Europe. The carriers say the move would raise ticket prices, hurt their competitiveness against non EU rivals, and undermine the global CORSIA offset scheme. They paid 2.3 billion euros in ETS costs in 2024 and expect that to rise to 5 billion euros by 2030. The airline CEOs want Brussels to align ETS costs with CORSIA instead of widening the scheme. They also ask for ETS revenue to be redirected toward sustainable aviation fuel agreements and next generation aircraft technologies. The EU Commission has argued that expanding the ETS would level the playing field between short haul and long haul carriers and that CORSIA alone may not drive enough emissions reductions to meet Europe's climate targets. The debate highlights a central tension in carbon pricing for aviation: whether unilateral regional carbon costs or a global framework like CORSIA is the better path to decarbonization. The outcome of this policy fight will affect carbon credit demand, airline operating costs, and the credibility of international offset markets.
