EU Weighs Extending Carbon Charges to Global Flights Amid Airline Backlash

Brussels: The European Commission is considering extending its carbon emissions charging system to international flights departing from or arriving in the European Union, a move that has sparked strong opposition from the global airline industry.

At present, the EU’s Emissions Trading System (ETS) applies mainly to flights within Europe. Airlines operating under the system must buy carbon allowances to offset the emissions generated by their flights. The Commission is now examining whether the scheme should be expanded to cover long-haul international aviation as part of the bloc’s broader climate strategy.

Major airlines and industry groups have warned that such a move would significantly increase operating costs and ultimately lead to higher ticket prices for passengers. They have urged the EU not to expand the ETS beyond intra-European flights.

The debate reflects the wider challenge of decarbonising aviation. Unlike cars, which can transition from petrol and diesel engines to electric batteries, commercial aircraft currently have no scalable zero-emission alternative. Aviation remains heavily dependent on fossil fuels, and every flight releases carbon dioxide into the atmosphere.

Supporters of stricter climate measures argue that airlines must contribute more to offsetting their environmental impact, including funding carbon reduction projects such as reforestation and sustainable fuel development.

However, the International Air Transport Association (IATA), speaking at its summit in Rio de Janeiro, said the proposed expansion would place an unsustainable financial burden on airlines. The industry body also warned that achieving the aviation sector’s “net zero by 2050” target is becoming increasingly difficult under current technological and economic conditions.

One of the main proposed alternatives to conventional jet fuel is Sustainable Aviation Fuel (SAF), including fuels derived from ethanol and other alcohol-based sources. But SAF currently accounts for less than 1% of global aviation fuel demand. Industry analysts note that scaling up production would require vast agricultural and industrial investment, making rapid expansion unlikely in the near term.

IATA, which represents more than 370 airlines and around 85% of global air traffic, had previously forecast a record industry net profit of $41 billion. That outlook has since been sharply reduced due to geopolitical tensions, rising fuel costs, aircraft delivery delays, and higher maintenance expenses that are forcing airlines to keep older aircraft in service longer.

IATA Director General Willie Walsh warned that jet fuel prices could rise by as much as 70% by 2026, adding further pressure to an industry already facing tight margins and growing environmental obligations.

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