EU to Extend Aviation Emissions Trading System to Some Flights Beyond Europe by 2029
Commission proposes to include flights up to 5,000km from centre of EU in its emissions trading system. European Commission regulators have proposed extending the scope of its emissions trading system (ETS) to cover some flights beyond the European Economic Area from 2029. The proposals, which would apply on flights to third-countries located up to 5,000km from the geographic centre of the European Union, stop short of including transatlantic services. The wide-ranging proposals also include initiatives to boost sustainable aviation fuel (SAF) usage, measures to avoid double-counting with the global carbon offsetting and reduction scheme for international aviation (CORSIA), as well as a review of the latter's implementation in 2032. It forms part of the Commission's wide-ranging review of its ETS system , published today. The Commission had more than a decade ago proposed including all flights within, to and from Europe in the ETS, before reducing the scope of the scheme to apply just to intra-European Economic Area (EEA] flights when agreement was reached for the global CORSIA programme at the 2013 ICAO General Assembly. The move to expand the scope of the ETS comes after the Commission completed an assessment of CORSIA, which concluded that the latter has not been" sufficiently strengthened yet". "It expands the scope of the ETS to flights departing to the neighbourhood of the [European] Union," the Commission says in supporting documentation released today. "The scope will be extended to cover all flights departing from an airport situated in the European Economic Area (EEA) and landing in third countries no further than 5,000 kilometres from the largest aerodrome in the geographical centre of the Union.” It notes the scope of the application, which notably means it will not apply to transatlantic flights and averts a potential collision course with the US Trump Administration, is around half the maximum distance of flights from the centre of Europe, and the Commission says takes account of analysis which indicates such routes are "most susceptible to potential hub leakage" – ie, connections where passengers might use different routings to avoid incurring ETS costs. The extended coverage will apply from 2029 rather than 2027 – the current 'stop the clock' legislation freezing ETS application to third-country flights ends this year. Under the proposals, the new application for ETS would run for four years and be dependent on a review of CORSIA's implementation in 2032. It says in the event CORSIA "is proving to be ambitious, efficient and successful", the scope of effective carbon pricing under the EU ETS should be reduced to flights within the EEA and departing to the UK, Switzerland and Gibraltar. But it adds: "If CORSIA still does not deliver by then, the Commission may consider extending the scope to full departing flights." The EC says its proposals maintain "close alignment" with CORSIA. "It avoids double carbon pricing where both systems apply, while continuing to support the development of an effective global approach to reducing aviation emissions," the Commission says. It will also increase the total number of allowances available in respect of aviation activities in proportion to the emissions newly included in the scope. "Today’s proposal significantly reinforces the support for the uptake of sustainable aviation fuels, cleaner propulsion technologies, hydrogen and electrification," the Commission says, noting it extends ETS-funded support for production of these technologies. Reacting to the proposals, Aoife O'Leary, chief executive of environmental NGO Opportunity Green, hit out at the 5,000km limit. "Today the Commission showed very clearly that when it comes to making EU legislation, it will allow the US and China to dictate the outcome, regardless of what the science and economics show is best for Europe. By excluding flights over 5,000km from the ETS, the Commission is signalling that it understands the science is clear: aviation is hugely damaging to the climate. And the basic economics of asking airlines to pay for their climate pollution are sound. “It’s just that the Commission has given in to bullies, allowing the airlines doing the most damage – those flying the longest routes from Europe – to keep polluting with no consequences,” she says.