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EU Carbon Costs for Outbound Flights

Financial Times Companies •
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The European Commission plans to propose adding carbon costs to flights departing the EU during a Tuesday meeting with industry groups. This move, part of a broader review of the bloc's emissions trading system (ETS), would require airlines to pay for CO2 emissions on international routes currently exempt from the climate program.

Currently covering only intra-EU flights, the ETS extension would add an estimated €45 per ticket for departing flights, potentially raising €17bn for member states by 2030. Airlines already face doubled jet fuel prices since the Middle East conflict began, making the additional costs particularly burdensome during an industry downturn.

The proposal faces opposition from different airline segments. Short-haul carriers like Ryanair argue the ETS incentivizes holidays outside Europe, while long-haul operators such as British Airways would resist making global routes more expensive. The US has previously opposed similar extensions, creating potential diplomatic complications.

The EU first passed legislation to include departing flights over a decade ago but delayed implementation amid international pushback. With the current extension set to expire year-end, officials argue airlines should bear responsibility for emissions regardless of destination, especially as the international offset scheme Corsia lacks formal backing from key countries like the US and China.