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Airlines decry 'double whammy' from proposed EU carbon charge on some international flights - Finance news and analysis from Global Banking & Finance Review
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Airlines decry 'double whammy' from proposed EU carbon charge on some international flights

Published by Global Banking & Finance Review

Posted on July 21, 2026

2 min read

· Last updated: July 21, 2026

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Airlines Challenge EU Proposal for New Carbon Charge on Some International Flights

Overview of the European Carbon Charge Proposal and Industry Response

Details of the Proposed Carbon Costs

July 21 (Reuters) - A European proposal that would impose new carbon costs on some international flights would leave carriers being hit twice, the president of Emirates said on Tuesday, as more airlines lined up behind a single global deal to curb pollution.

The European Commission published proposals on Friday ​to start applying costs on emissions from ​international flights departing Europe - measured by a specific point in central Europe - and landing in countries up ​to 5,000 km (3,100 miles)away.

Scope and Exemptions

While the proposal would exclude direct transatlantic flights to the U.S., some flights to the Middle East, Turkey and North Africa would be impacted, starting in 2029 if it is approved.

Industry and International Reactions

Criticism from Airlines and Trade Groups

The proposal has been denounced by the United States and airlines' trade group IATA, while the UN's aviation agency warned it would undermine the global CORSIA deal which requires most airlines to offset their rising emissions from international flights.

Emirates' Position and CORSIA Compliance

"This is a double whammy because you know we have CORSIA which is already in place," Emirates President Tim Clark told reporters at the Farnborough Air Show on Tuesday. "It is supported by the aviation community, and they see it as the way to deal with this particular issue."

Dubai-based Emirates has already purchased credits supporting rainforests in Guyana to help offset its carbon obligations under the global deal brokered in 2016 by the International Civil Aviation Organization.

U.S. Airlines' Perspective

Airlines for America, a trade group representing U.S. carriers, said on Monday in a statement that it does not support a "fragmented approach" to tax emissions from international aviation.

"Extending the scope to international flights outside of the European region violates international agreements," A4A added.

European Commission Response

A spokesperson for the European Commission declined to comment, citing a public holiday in Belgium.

(Reporting By Allison Lampert in Montreal and Joanna Plucinska in Farnborough, Additional reporting by Makini Brice in Paris, Editing by William Maclean)

Key Takeaways

  • The EU proposes from 2029 to extend its carbon pricing (via ETS) to international flights departing Europe within 5,000 km, excluding direct transatlantic routes
  • Airlines argue the plan duplicates obligations already under the global CORSIA scheme, undermines ICAO harmonization and risks fragmenting climate efforts
  • The U.S. and airlines’ groups oppose the proposal, calling for a unified global framework instead of region‑specific charges

Frequently Asked Questions

What is the proposed EU carbon charge for international flights?
The proposal would impose new carbon costs on certain international flights departing Europe and landing in countries up to 5,000 km away, starting in 2029 if approved.
Which flights would be affected by the EU carbon charge?
Flights to the Middle East, Turkey, and North Africa may be impacted, while direct transatlantic flights to the U.S. would be excluded.
Why are airlines calling the EU proposal a 'double whammy'?
Airlines argue the EU charge duplicates costs since a global CORSIA agreement already requires emissions offsets for international flights.
How do opponents say the EU policy affects global emission efforts?
Critics, including IATA and the UN aviation agency, say it undermines the unified global CORSIA scheme and creates a fragmented approach to carbon policy.
What actions have airlines taken to comply with current emission rules?
Some, like Emirates, have purchased credits to offset emissions under the international CORSIA deal established by the International Civil Aviation Organization.

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