EU Must Review EU ETS to Support Competitiveness as Aviation Decarbonizes: IATA

The International Air Transport Association (IATA) calls for the review of the European Union’s Emissions Trading System (EU ETS) to enhance European air connectivity and economic resilience by improving the competitiveness of Europe’s air transport industry.

Review Needed:
IATA urges the EU to review its Emissions Trading System (EU ETS) to strengthen competitiveness while aviation decarbonizes.

Full Implementation of CORSIA:
The EU should apply ICAO’s global Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) to all international flights, including intra-EEA routes, to avoid regulatory fragmentation.

SAF Book-and-Claim System:
Introduce a purchase-based claiming mechanism for Sustainable Aviation Fuel (SAF). This would allow airlines to claim SAF credits based on purchases, regardless of where the fuel is physically uplifted, ensuring transparency and flexibility.

Revenue Reinvestment:
Redirect more EU ETS revenues into decarbonization efforts—especially scaling SAF production, supporting zero-emission technologies, and helping airlines manage cost parity.

Balance Climate Policy with Competitiveness:
Avoid overlapping measures that add cost without environmental benefit. Policies should be harmonized with international standards and grounded in science to protect connectivity and consumer choice.

Context
- The call aligns with the Draghi Report, which highlights high costs, regulatory complexity, and underinvestment as barriers to EU economic resilience.
- IATA emphasizes that aviation is a strategic asset for Europe’s integration, trade, and global standing.
- Willie Walsh, IATA’s Director General, stresses that reviewing EU ETS is essential to balance climate ambition with affordability and competitiveness.

In short, IATA is pressing the EU to streamline climate policy, ensure global alignment, and reinvest revenues to accelerate aviation’s transition without undermining Europe’s air connectivity.