EU Flights Face New Carbon Costs by 2029

The European Union has proposed extending its carbon pricing scheme to include international aviation, with new regulations set to begin in 2029. The plan involves covering all flights departing from EU countries, provided they land within 5,000km of central Europe. This distance conveniently excludes flights to the United States and China, a move seen as a strategic compromise to avoid trade tensions.

This initiative is part of a broader review of the EU's emissions trading system, which currently prices carbon at approximately €80 per tonne. While aviation accounts for a significant portion of global CO2 emissions and its impact is amplified by contrails, implementing carbon pricing in international sectors like aviation has historically been challenging.

The proposal represents a scaled-back approach compared to earlier EU ambitions, influenced by geopolitical considerations and potential pushback from aviation industry stakeholders and trade partners. Some environmental campaigners have expressed disappointment, arguing that the 5,000km radius still leaves a substantial percentage of European aviation emissions untaxed and foregoing potential revenue.

Additionally, the EU is assessing the effectiveness of the existing international agreement, the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia). Corsia aims for carbon-neutral growth by 2030 but has limitations, including voluntary participation and concerns about the methodology of carbon offsets. The EU plans to re-evaluate Corsia's performance in 2032.