The European Union is moving to tighten rules on aviation emissions within its borders. The decision aims to raise the price airlines pay for carbon dioxide emitted on flights between bloc member states, with a notable exception for travels involving outermost regions, and for trips between two EU airports within the same outermost region, or within the same member state, by 2030.
The carve-out means that emissions from flights linking outermost regions such as the Canary Islands to other EU destinations, as well as intra-regional hops inside the outermost regions, will not be affected by the same increases. The political agreement, which has not yet been formalized by the Member States and the European Parliament, excludes international flights to and from third countries that fall under the United Nations global emissions trading system known as CORSIA.
Nevertheless, the agreement tasks the European Commission with reviewing whether this international framework aids or hinders Europe’s climate goals. If the assessment signals a negative impact, the Commission would be required to propose including international flights under Europe’s system. This was stated in a communication by the European Parliament.
Aviation remains a component of the EU emissions trading system where allowances for CO2 are reduced and traded each year. The mechanism also allocates free allowances, and currently about 82 percent of aviation allowances are part of this pool.
The agreement between the member states and the parliament foresees the elimination of all free CO2 emission credits from 2026, arriving one year earlier than originally proposed in the Fit for 55 package that the European Commission introduced roughly eighteen months ago.
To secure the phase-out, the accord specifies that 25 percent of these free allocations will be withdrawn by 2024, with half already liquidated a year later and the remainder planned for subsequent action.
Airlines will face higher rates as part of the reform, a consequence that was highlighted by policy observers during negotiations.
On the other hand, negotiators from both institutions agreed to allocate 20 million emissions credits between January 1, 2024 and December 31, 2030 for airlines that use renewable fuels such as hydrogen or other clean biofuels sourced responsibly.
Regarding emissions of gases beyond CO2, such as nitrogen oxides or sulfur dioxide, the agreement calls for the European Commission to establish an information, data and verification mechanism starting in 2025. This framework is intended to support a forthcoming proposal addressing these other greenhouse gases.
Frustration among conservationists and industry
Environmental organizations, including Transport & Environment, say the agreement falls short because it excludes international flights. They argue that the bloc loses ground in climate action due to this stance by European governments.
“Average European households will continue to shoulder higher costs for CO2 emissions than for frequent long-haul travel,” remarked Jo Dardenne, who directs aviation initiatives for the organization.
The Airlines for Europe platform, representing most European carriers, noted that the industry has already paid for its emissions through the ETS since 2012. They warned the cost could rise significantly, potentially quadrupling by 2025 and reaching billions of euros annually in the long term.
As a result, the European aviation employers association expressed disappointment that all free loan allocations would be withdrawn starting in 2026, signaling further adjustments for the sector.