European Commission partially restarts the clock on international aviation in the EU ETS

The European Commission’s proposed EU ETS revision would restart the inclusion of some international aviation emissions under the system after more than a decade of suspended coverage.

However, the proposed approach does not represent a full return to the original scope. The design introduces limits based on route distance, direction of travel, and timing, while also addressing the interaction between the EU ETS and CORSIA. These choices will determine which airlines and routes face additional compliance obligations, and how carbon costs are distributed across the international aviation sector.

This article examines the proposed scope, the policy and competitiveness considerations behind it, and the potential implications for airlines, aviation emissions, and demand for CORSIA-eligible credits.