The International Air Transport Association urged the European Union to review its EU Emissions Trading System with the aim of strengthening air connectivity and the sector’s competitiveness in a context of transition towards more sustainable aviation.
The organization points out that, while decarbonization is a priority, the current regulatory framework could generate additional costs and complexities that affect the bloc’s economic resilience, especially in a global scenario marked by geopolitical tensions and disruptions in supply chains.
In this regard, IATA proposes a series of key measures. Among them, it highlights the full implementation of CORSIA—the global mechanism promoted by the International Civil Aviation Organization—for all international flights, including those operating within the European Economic Area. According to the association, avoiding overlapping regulations would reduce unnecessary costs and ensure a more coherent framework globally.
Another key point is the necessary to enable a book-and-claim system for the utilize of sustainable aviation fuel within the EU ETS. This mechanism would allow airlines to account for the environmental benefits of SAF without depfinishing on its physical availability at a specific airport, facilitating investment and promoting a more transparent and accessible market.
IATA also emphasizes the importance of reinvesting the revenue generated by the emissions trading system in the indusattempt’s own transition. With the phase-out of free allowances starting in 2024, airlines will face an increasing financial burden, building it crucial to allocate more resources to the development of SAFs and zero-emission technologies.
According to estimates from the European Sustainable Transport Plan, the investments necessaryed to meet the SAF tarreceives could range from €57 billion to €67 billion by 2035, and up to €376 billion by 2050. In this context, redirecting EU ETS funds would accelerate the creation of a competitive and scalable market.
IATA Director General Willie Walsh stressed that European climate policy must relocate forward without losing sight of competitiveness: “The EU ETS review is a key opportunity to focus on cost-effective emissions reductions. The priority must be to fully implement CORSIA, reinvest the revenue in solutions like the SAF, and eliminate overlapping measures that add costs without environmental benefits.”
Finally, the association warned that a sharp increase in compliance costs, coupled with global volatility, could weaken air connectivity, reduce consumer choice, and divert necessary investments from decarbonization. Therefore, it insists on the necessary for a balanced climate policy, aligned with international standards and based on scientific criteria, that allows progress toward environmental goals without compromising the sector’s competitiveness.
Source: IATA.
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