Archives



Air, Feature, Freight News, Logistics


IATA Objects to EU Emissions Trading Beyond EU

[ July 24, 2026   //   ]

The International Air Transport Association has sharply criticized proposals to extend the European Union Emissions Trading System beyond Europe’s borders, warning that the move could provoke international disputes, undermine European competitiveness and complicate global aviation decarbonization efforts.

IATA Director General Willie Walsh called the proposal a repeat of an approach abandoned more than a decade ago amid opposition to the EU applying its emissions rules to international flights beyond its jurisdiction.

“The EU is repeating a historic error,” Walsh said. “The consequences will be harmful, sowing acrimony over extraterritoriality, slowing global decarbonization, and sapping European competitiveness, with European travelers and businesses paying the price.”

IATA instead urged European policymakers to support the Carbon Offsetting and Reduction Scheme for International Aviation, or CORSIA, the global aviation emissions framework developed through the International Civil Aviation Organization.

The airline association said strengthening CORSIA would provide a more effective approach than extending a regional emissions trading system to international operations.

IATA also signaled support for some measures aimed at accelerating the use of sustainable aviation fuel, including increased SAF allowances and the development of book-and-claim systems that allow the environmental benefits of SAF to be purchased separately from the physical fuel.

Walsh cautioned, however, that implementation details would determine whether those mechanisms are effective.

IATA said it plans to engage with European policymakers in support of an approach that avoids extraterritorial application of the EU ETS, strengthens CORSIA and provides more effective incentives for SAF adoption.

The dispute highlights a growing challenge facing international transportation as governments expand carbon-pricing regimes. While aviation and shipping companies face increasing pressure to reduce emissions, industry groups have warned that overlapping regional and national systems could create additional costs and compliance complexity for businesses operating across multiple jurisdictions.

That issue is also emerging in maritime transportation. The UK expanded its Emissions Trading Scheme to domestic maritime activity July 1, adding another carbon-pricing regime alongside the EU ETS and prompting BIMCO to advise shipowners and charterers to review how emissions allowance costs are allocated under charter-party agreement

Tags: , , ,