HeadlinesBriefing favicon HeadlinesBriefing.com

EU plans limited aviation carbon pricing

Financial Times Companies •
×

The EU has proposed to extend its CO₂ pricing scheme to all flights departing from the bloc, but only those landing within 5,000km of a point in central Europe, a move that deliberately excludes the United States and China. The plan, revealed late last week, aims to bring international aviation into the EU’s emissions trading scheme before the end of the decade.

It would start in 2029 and charge about €80 a tonne of carbon. Aviation accounts for roughly 3 per cent of energy‑related CO₂ emissions each year, and its warming impact is amplified by contrails. Previous attempts to price global flight emissions faltered under pressure from the US and China, leading the Commission to settle on this limited scope after pushback from transport, industrial and trade departments concerned about blowback.

Under the proposal, about 47 % of European aviation would remain exempt, forgoing roughly €4.2bn in potential revenue, according to modelling by the campaign group T&E. Critics such as T&E’s aviation director Diane Vitry call it a watered‑down start, while Tim Johnson of the Aviation Environment Federation sees it as a measured decision reflecting current political realities. The EU also left open the possibility of leaning more on the existing Corsia scheme, which only covers about 70 % of international aviation emissions and relies on voluntary offsets.