Subject: 2026 EU ETS revision for aviation
Dear Commission President, dear Executive Vice-President, dear Commissioners,
The DESTINATION 20501 partners are writing jointly regarding the upcoming EU ETS revision. We would like to make sure that it supports, rather than undermines, aviation’s path to net-zero.
The decisions taken through this revision will be pivotal for both the decarbonisation and competitiveness of European aviation. At a time of growing global competition and unprecedented investment needs, Europe must avoid measures that weaken its aviation and aeronautics sectors while pursuing climate objectives.
First, we call on the Commission to maintain the current geographical scope of the EU ETS for aviation. Any unilateral expansion beyond its existing scope – as envisaged by DG CLIMA – would heavily distort competition to the benefit of third country airlines and airports and trigger retaliatory trade measures and will likely deliver no net climate benefit. Back in 2012, the proposed extension of the EU ETS to extra EU/EEA flights faced significant international opposition and retaliatory measures from third countries, jeopardising billions of euros’ worth of European aircraft sales. At the same time, the US Congress prohibited US airlines from participating in the scheme. Those reactions led the EU to adopt the “stop the clock” mechanism. With the expiry of that derogation at the end of 2026, resulting in the automatic extension of the geographical scope, we respectfully urge the Commission to ensure that it does not lapse while the revision of the EU ETS remains under negotiation. In the current geopolitical context, extending the EU ETS beyond intra-EEA flights will likely provoke an even stronger international backlash than in 2012.
As highlighted in the Draghi report, and validated by the upcoming EU Strategy, European aeronautics and aviation are a cornerstone of the continent’s economic sovereignty and strategic autonomy. The regulatory framework must reflect that. The appropriate solution is a strengthened CORSIA as the single global carbon pricing framework for international aviation.
Second, the Commission must ensure that aviation-related revenues are reinvested in the sector’s decarbonisation and that the EU ETS framework effectively supports the sectors’ transition. With ReFuelEU Aviation mandating rising SAF blending obligations, it is essential that part of the revenues generated by European airlines through the EU ETS are channelled back into the sector, for example through making SAF offtakes economically viable across the aviation eco-system and through reinvesting in the development of new aircraft and engine technologies. In parallel, SAF allowances must be increased and extended beyond 2030 to bridge the cost gap. The ETS Innovation Fund must also be reoriented to prioritise aviation’s decarbonisation needs commensurate with the sector’s contribution to the system and the scale of investment required to achieve net-zero emissions.
European aviation remains fully committed to achieving net-zero by 2050. We ask for a policy framework that matches that ambition with competitiveness, investment certainty, and global coherence. We therefore urge the Commission to seize the opportunity of the EU ETS review to deliver a framework that enables aviation to decarbonise while safeguarding Europe’s industrial strength and global leadership in aviation and aeronautics.
These points are consistent with our Industry Recommendations for the STIP, our Roadmap and Policy Recommendations to deliver a competitive and sustainable European Aviation industry. We are eager to contribute our expertise and experience to the EU decision-making process. Please feel free to contact us, should you wish to discuss in more depth the above recommendations.
Yours sincerely,
1DESTINATION 2050 is an industry alliance representing the key pillars of the European Aviation industry, including civil aeronautical industry such as airframe, engine and equipment manufacturers, airlines, airports, and air navigation service providers. Formed by A4E, ACI EUROPE, ASD, CANSO Europe and ERA;