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US 'deeply concerned' after EU eyes carbon price for international flights - Finance news and analysis from Global Banking & Finance Review
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US 'deeply concerned' after EU eyes carbon price for international flights

Published by Global Banking & Finance Review

Posted on July 20, 2026

2 min read

· Last updated: July 20, 2026

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US Expresses Deep Concern Over EU Carbon Price Plans for International Flights

US Reaction to EU Carbon Pricing on International Flights

BRUSSELS, July 20 (Reuters) - The United States is "deeply concerned" about the European Union's plans to impose carbon costs on some international flights, a spokesperson for the U.S. Department of Transportation told Reuters on Monday.

Official US Statement

• "The United States remains deeply concerned about any expansion of the EU's Emission Trading System," the spokesperson said.

Details of the European Commission Proposal

Scope and Thresholds

• 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 away.

Implications for US-Europe Flights

• That threshold would exclude direct flights from Europe to the United States - a limit some EU officials said had been designed to avoid stoking tensions with U.S. President Donald Trump's administration. However, U.S. officials are still concerned about the proposal.

US Response and Historical Context

Potential Actions by the US

• "We are analyzing the European Commission's proposal and will take appropriate steps as needed to protect American consumers and businesses," the spokesperson added.

Previous US-EU Disputes Over ETS

2012 Blocked Expansion

• Washington blocked a previous attempt by the EU to expand its ETS to cover international flights in 2012.

(Reporting by Kate Abnett; Editing by Makini Brice, Inti Landauro and Susan Fenton)

Key Takeaways

  • The U.S. Transportation Department is 'deeply concerned' about the EU’s plan to extend carbon pricing to certain international flights departing from Europe, despite exclusions for direct flights to the U.S. (agenceurope.eu)
  • The EU’s July 17, 2026 proposal would apply carbon pricing to flights within a 5,000 km radius of Europe’s geographic center, starting in 2029, excluding direct Europe–U.S. flights but nonetheless raising concerns in Washington (agenceurope.eu)
  • U.S. officials reference past resistance—including blocking in 2012 via the European Union Emissions Trading Scheme Prohibition Act—to unilateral expansion of the EU ETS to international aviation (congress.gov)

References

Frequently Asked Questions

Why is the US concerned about the EU's carbon pricing plan for international flights?
The US is worried that the expansion of the EU's Emission Trading System could negatively affect American consumers and businesses.
Does the EU proposal impact flights between Europe and the United States?
The proposal excludes direct flights from Europe to the United States, aiming to avoid tensions, but US officials remain concerned.
What is the EU's main goal in applying carbon costs to international flights?
The EU seeks to address emissions from international air travel by applying carbon costs to flights departing Europe and landing within 5,000 km.
Has the US opposed similar EU measures in the past?
Yes, Washington blocked a previous EU attempt to expand the emissions trading system to international flights in 2012.
How is the US government responding to the new EU plans?
The US is analyzing the EU proposal and may take steps to protect American interests if necessary.

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