How can the EU Emissions Trading System drive the aviation sectord decarbonisation?

The document argues that the aviation sector has benefited from excessive exemptions under the EU ETS and that the international CORSIA scheme is an ineffective substitute. It recommends bringing international flights back under the EU ETS, phasing out free allowances to airlines, and addressing non-CO2 climate impacts to align the sector with the Paris Agreement and the polluter pays principle.

• Aviation's total climate impact is estimated to be three times higher than its CO2 emissions alone due to the effects of nitrogen oxides (NOx), water vapour, and soot particle emissions at high altitudes.
• The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is deemed ineffective because it only requires airlines to compensate for emissions growth above a 2019 baseline and relies on carbon credits of questionable quality.
• Airlines have historically paid for only a small portion of their emissions; in 2019, they paid for approximately 47.5% of emissions covered under the EU ETS, and the three largest European airlines (Lufthansa, Air France, and British Airways) paid for less than 25% of their total emissions.
• The risk of 'carbon leakage'—where flights shift to airports outside the EU to avoid carbon costs—is considered immaterial, as the European Commission found no material risk in price ranges of 25-30/tCO2e.
• The cost of EU emissions trading for airlines is relatively low compared to fuel costs, representing 0.3% of total operating costs in 2017 and an estimated 1.2% in 2021.
• The EU ETS currently only covers CO2 emissions, leaving non-CO2 effects unaddressed; the document suggests implementing a NOx charge and optimising flight paths to mitigate these.

APA

Carbon Market Watch (n.d.). How can the EU Emissions Trading System drive the aviation sectord decarbonisation? https://carbonmarketwatch.org/wp-content/uploads/2021/06/How-can-the-EU-Emissions-Trading-System-drive-the-aviation-sectors-decarbonisation_.pdf

Chicago

Carbon Market Watch. How can the EU Emissions Trading System drive the aviation sectord decarbonisation? n.d. https://carbonmarketwatch.org/wp-content/uploads/2021/06/How-can-the-EU-Emissions-Trading-System-drive-the-aviation-sectors-decarbonisation_.pdf.

Wikipedia

{{cite report |author=Carbon Market Watch |title=How can the EU Emissions Trading System drive the aviation sectord decarbonisation? |url=https://carbonmarketwatch.org/wp-content/uploads/2021/06/How-can-the-EU-Emissions-Trading-System-drive-the-aviation-sectors-decarbonisation_.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{carbonmarketwatchndhow, author = {{Carbon Market Watch}}, title = {{How can the EU Emissions Trading System drive the aviation sectord decarbonisation?}}, institution = {Carbon Market Watch}, url = {https://carbonmarketwatch.org/wp-content/uploads/2021/06/How-can-the-EU-Emissions-Trading-System-drive-the-aviation-sectors-decarbonisation_.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }