In the early hours of Wednesday, the European Union finalized an agreement on legislation aimed at increasing the costs incurred by airlines for emitting carbon dioxide, a major contributor to climate change. The law, negotiated by representatives from EU countries and the European Parliament, targets flights within Europe, requiring airlines to obtain permits from the EU’s carbon market to offset their carbon dioxide emissions. Currently, most of these permits are provided to airlines at no cost.
According to sources familiar with the discussions, the agreed-upon law seeks to eliminate the provision of free permits by 2026, compelling airlines to purchase their CO2 permits. This shift introduces a financial incentive for airlines to reduce their carbon footprint. The law also stipulates that a reduced number of free CO2 permits will be allocated to airlines employing sustainable aviation fuels (SAF), partially compensating them for the cost disparity between SAFs and the more affordable fossil fuel kerosene.
While the EU’s carbon market has historically covered emissions from flights within the EU, negotiators decided to assess the progress of the U.N. aviation agency ICAO’s plan to offset CO2 emissions from international flights by 2026. If the ICAO scheme is not deemed effective in achieving net-zero emissions by 2050, the EU may propose extending its carbon market to encompass emissions from all departing flights.
Climate advocates expressed disappointment that the inclusion of emissions from international flights in the carbon market was not expedited. Jo Dardenne, aviation director at the non-profit group Transport and Environment, commented, “Average European families will continue to pay much more for their CO2 emissions than frequent long-haul flyers. We are about to lose another decade of climate inaction.”
Formal approval of the law by both EU countries and the European Parliament is required before it can be enacted.
