The European Union has reached an agreement with its plan to revise existing aviation rules for the industry to pay for its carbon footprint. As a result, the revised regulations will support making the aviation industry “Fit for 55,” establishing in law its contribution to the target of reducing net greenhouse gas emissions by at least 55% by 2030.
The EU’s long-term growth plan, the European Green Deal, aims to make Europe climate neutral by 2050. Therefore, this week’s agreement regarding revising the aviation-related EU Emissions Trading System (ETS) regulations is essential to adopt the Commission’s ‘Fit for 55’ legislative package to implement the European Green Deal.
By gradually eliminating free allowances for the aviation sector by 2026, the revised regulations on emissions trading will hasten the application of the polluter pays principle. In addition, this agreement tightens the rules under the current system, which has been applied to aviation since 2012. As a result, a firm price signal indicates that the industry will have a greater obligation to pay for its carbon footprint and that there will be more economic incentives for emission reduction.
The current “stop the clock” mechanism on the international application of the rules will continue to be used. Until the beginning of 2027, EU carbon pricing will be in effect for flights within the EU/EEA and departing flights to Switzerland and the United Kingdom.
In addition, the International Civil Aviation Organization’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) will be evaluated by the Commission in 2026 to determine whether it is adequately achieving the goals of the Paris Agreement. Depending on the results of this assessment, the Commission will put forth a legislative proposal that, if CORSIA is not sufficiently in line with the Paris Agreement, could expand the reach of EU emissions trading to departing flights.
The agreement also calls for creating a new support programme to promote the use of sustainable aviation fuels. This programme will be funded with estimated EU ETS revenues of €1.6 billion. It will also develop a new system for airlines to track, record, and confirm non-CO2 emissions and aviation’s climate effects, accounting for two-thirds of the industry’s overall climate impact. In addition, more information on international aviation emissions will be made accessible to the public while protecting commercially sensitive information, marking a significant improvement in transparency.
EU countries and the bloc’s parliament will formally approve the law before it takes effect.
