Iata ‘frustrated’ as EC extends emissions trading to flights beyond Europe

The European Commission presented plans for a revised Emissions Trading Scheme (ETS) on Friday which drew immediate criticism from both aviation and environment bodies.

Iata issued a statement saying it was “deeply frustrated” at the commission’s proposed extension of the scheme beyond Europe’s borders.

The ETS has until now applied to flights only within the borders of the European Economic Area (EEA). Brussels proposes it be expanded from 2029 to include flights departing the EU to all destinations within 5,000 kms of the geographical centre of the EU as well as to private jets.

The 5,000 km range would include North Africa, the Middle East, and parts of Asia but exclude the US and the rest of the Americas, avoiding a confrontation with Washington.

Iata accused the EC of “repeating an historic error”, claiming: “The consequences will be harmful, sowing acrimony over extraterritoriality, slowing global decarbonisation and sapping European competitiveness.”

The airline association said travellers and businesses would “pay the price”.

However, Brussels-based environmental policy group Transport & Environment (T&E) slammed the EC for taking only a “half-hearted step towards taxing international flights”.

It argued the ETS revision “falls short of driving the robust climate action needed for the sector”.

T&E noted: "For the first time, the Commission has put a carbon price on flights departing the EU, but only within a radius of 5,000 km and only from 2029.

“This means a flight from Paris to Dubai would be covered by the carbon market, while a flight from Paris to New York would not. This leaves 47% of European aviation exempt from carbon pricing.”

Iata demanded the EC give “full support” instead to the global Carbon Offsetting Scheme for International Aviation (Corsia) agreed by the International Civil Aviation Organisation (ICAO) and backed by Iata. 

However, the EC noted in unveiling its proposed revision that Corsia “has not been sufficiently strengthened . . . [and] does not deliver” as a credible alternative to the EU’s ETS.

The EC said it would carry out a fresh assessment of Corsia’s impact in 2032.

Welcoming publication of the proposals, European Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra said: “The EU ETS has proven that carbon pricing works. It has cut emissions, strengthened Europe’s energy security and mobilised investment across our economy.”

The European Parliament is expected to vote on the revised scheme by the end of this year.