The European Commission has proposed a revision of the EU Emissions Trading System (EU ETS), which has generated over €230 billion in auction revenue since 2005. Emissions in covered sectors have decreased by approximately 50% compared to 2005 levels.
The new proposal expands the scope of aviation emissions pricing to include all departing flights to airports within 5,000 km of Frankfurt. This change covers roughly 59% of departing aviation emissions, an increase from the current 44%.
The revision introduces carbon pricing for private jets for the first time. Additionally, the proposal offers free allowances to airlines that implement measures to avoid the creation of warming contrails, addressing the non-CO2 climate impact of aviation.
Transport & Environment (T&E) advocates for extending the ETS to all departing flights by 2028 rather than 2029. The organization notes that SAF allowances will reduce the proportion of priced aviation emissions to 57% by 2029.
