“Extending ETS to routes beyond the EU is simply not the solution. That’s like treating the symptom by spreading the sickness,” said Ourania Georgoutsakou, Managing Director of Airlines for Europe (A4E). “If the EU is serious about protecting competitiveness, the fairest way to level the global playing field is to bring down ETS costs in line with the international CORSIA mechanism. European passengers and airlines should not be penalised for being European.”
ETS prices remain highly volatile, peaking in January at €92 per tonne of CO₂ — far above the €26.5–50 per tonne forecast for 2026 and well above the global €2.5–45 per tonne range. For A4E members, this translates into costs of ca.€5 billion by 2030 for ETS payments, double the cost of 2024, as free allowances for aviation are fully phased out.
The impact is felt directly by European passengers, who pay more to fly within Europe, counterproductively incentivising flights via non-EU hubs where ETS, as well as ReFuel EU SAF charges, do not apply.
ETS revenues generated from flying are also rarely reinvested into aviation decarbonisation, despite the sector facing stringent climate mandates to replace conventional jet fuel with sustainable aviation fuels (SAF). Redirecting ETS revenues to support SAF production is essential to level the playing field and accelerate supply, as mandates alone will not be sufficient to scale clean fuels, particularly e-SAF.
Air travel in Europe is today more accessible than ever, but passengers and airlines cannot continue to shoulder disproportionate costs in a system that penalises European airline efficiency. The EU can no longer afford business-as-usual regulation and expect other regions to follow. Ahead of the revision in July, pragmatic reform of the EU ETS is essential to balance decarbonisation and competitiveness.
Tags: Ourania Georgoutsakou, Airlines for Europe (A4E) EU ETS burden