Future of aviation in the EU ETS

Aviation was introduced to the EU ETS in 2008, but its implementation through the third and fourth trading periods has been a rocky road so far. Looking forward to 2030, the sector will continue to see evolution. For intra-EEA flights, the end of free allocation is within sight, as is the need to consider non-CO2 emissions. For extra-EEA aviation, without significant strengthening of CORSIA, the exemption from the EU ETS is set to expire, exposing international flights to significant, compulsory carbon pricing for the first time. For both the EU carbon market and for aviation operators the shift will have significant consequences.