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EU ETS review needs price signal for outside Europe flights

Published by Global Banking & Finance Review

Posted on May 12, 2026

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· Last updated: May 12, 2026

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EU ETS Review Urged to Include Carbon Price Signal for Extra-European Flights

Calls for Carbon Pricing in International Aviation Emissions

By Nina Chestney

EU Official Highlights Need for Equal Treatment

LONDON, May 12 (Reuters) - The European Commission's review of its Emissions Trading System (EU ETS) should deliver an effective carbon price signal for the EU’s share of international aviation emissions on extra-European routes, a senior EU official said on Tuesday.

Level Playing Field for Aviation Operators

This is to ensure a level playing field for all aviation operators with equal treatment on routes, Polona Gregorin, Head of Unit, Air, Rail, Water and Intermodal Policy, Directorate-General for Climate Action, said on a webinar. Currently, the ETS covers intra-EU flights only. 

Redesigning the EU ETS for 2040 Climate Target

Brussels is redesigning the EU ETS, which forces power plants and industries to buy CO2 permits when they pollute, to align it with its 2040 climate target. 

(Reporting by Nina Chestney, Editing by Louise Heavens)

Key Takeaways

  • EU ETS currently covers only intra‑EEA flights; extra‑European routes remain exempt under the “stop‑the‑clock” measure pending reassessment by 2026
  • The Commission plans to evaluate including departing flights to non‑CORSIA participating countries in the ETS after 2026 if CORSIA falls short of Paris goals
  • Expanding the ETS’s scope could strengthen decarbonisation incentives and level the playing field across all international aviation routes

Frequently Asked Questions

What is the EU Emissions Trading System (EU ETS)?
The EU ETS is a scheme where power plants and industries in the EU must buy permits for CO2 emissions to help reduce greenhouse gases.
Which flights does the current EU ETS cover?
The current EU ETS covers only flights within the European Union (intra-EU flights).
Why is a carbon price for extra-European flights important?
A carbon price for extra-European flights creates fair competition for all aviation operators and helps address international aviation emissions.
Who called for changes in the EU ETS regarding aviation emissions?
Polona Gregorin, Head of Unit at the Directorate-General for Climate Action, called for the changes during a webinar.
How is the EU ETS being redesigned?
The EU is redesigning the ETS to align with its 2040 climate target and potentially include more aviation routes.

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