FAQ: The EU ETS for Aviation Explained

The EU ETS for aviation currently covers intra-EEA flights, with a potential expansion to global flights pending a 2026 evaluation of ICAO's CORSIA. A key reform is the gradual phase-out of free allowances, with airlines paying for all emissions by 2026. The system is also introducing monitoring for non-CO2 emissions and providing 20 million free allowances until 2030 to support sustainable aviation fuel (SAF) uptake.

• The scope of the EU ETS for aviation is currently limited to intra-EEA flights under a "stop the clock" measure, which has been extended until the start of 2027. The European Commission will evaluate the effectiveness of ICAO's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) in 2026 to determine if the scope should expand to cover flights leaving the EU to other parts of the world.
• Free emission allowances for airlines are being phased out to enforce the "polluter pays" principle. Allowances will be reduced by 25% in 2024 and 50% in 2025, with airlines required to pay for all emissions starting in 2026.
• The EU is implementing a monitoring, reporting, and verification (MRV) system for non-CO2 emissions—such as nitrogen oxides, sulphur dioxide, and contrail-cirrus clouds—which can have a heating effect up to three times greater than CO2. A proposal to address these emissions may be put forward in 2028 following the MRV analysis.
• To encourage the use of sustainable aviation fuels (SAF), the EU will distribute 20 million free allowances until 2030 to help operators cover the price difference between SAF and conventional jet fuel.

APA

Daniele (2023). FAQ: The EU ETS for Aviation Explained. Carbon Market Watch. https://carbonmarketwatch.org/2023/12/22/faq-the-eu-ets-for-aviation-explained/

Chicago

Daniele. FAQ: The EU ETS for Aviation Explained. Carbon Market Watch, 2023. https://carbonmarketwatch.org/2023/12/22/faq-the-eu-ets-for-aviation-explained/.

Wikipedia

{{cite report |last1=Daniele |title=FAQ: The EU ETS for Aviation Explained |publisher=Carbon Market Watch |date=22 December 2023 |url=https://carbonmarketwatch.org/2023/12/22/faq-the-eu-ets-for-aviation-explained/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{daniele2023faq, author = {Daniele}, title = {{FAQ: The EU ETS for Aviation Explained}}, institution = {Carbon Market Watch}, year = {2023}, month = dec, url = {https://carbonmarketwatch.org/2023/12/22/faq-the-eu-ets-for-aviation-explained/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }