Europe’s latest EU ETS expansion plan for aviation has hit rough air. The International Air Transport Association (IATA) says the European Union is reviving a policy fight that shook the airline sector more than a decade ago.
The European Commission wants to widen the EU Emissions Trading System. Reports say the plan would place carbon costs on flights arriving in the European Economic Area from airports within 5,000 kilometres. The change would start in 2029. It is still a proposal, not a law, and must pass through the EU’s political process.
IATA Director General Willie Walsh did not mince words.
“The EU is repeating a historic error. The consequences will be harmful,” he said.
IATA fears the wider scheme could spark disputes with nations outside Europe. It also warns of higher costs, weaker European competition and slower progress on cutting aviation emissions. Put simply, Brussels may be loading more rules into the hold before the world agrees on the flight plan.
The airline group wants stronger support for CORSIA. Its full name is the Carbon Offsetting and Reduction Scheme for International Aviation. It is the global carbon plan agreed through the International Civil Aviation Organisation.
IATA also backed two parts of the EU approach. It said larger sustainable aviation fuel allowances may help. It also welcomed the idea of a book-and-claim system for SAF.
Book-and-claim lets an airline buy the green value of SAF without using that fuel on the same flight. This can help carriers at airports where SAF is scarce or costly. Good rules would be vital to stop double-counting and protect trust.
The Commission says wider carbon pricing can cut emissions and make competition fairer. It also wants more ETS funds to support cleaner fuels and new technologies.
Now comes the hard part. Europe must cut carbon without turning a global industry into a maze of regional rules. Travellers and travel firms will watch closely. Extra costs rarely stay in Brussels; sooner or later, they tend to find their way onto the aircraft.
By: Susan Ng – © 2026.
Read Time: 2 minutes.
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