Emissions from European aviation have almost bounced back to pre-COVID levels, and airlines are not currently paying for the true cost of their pollution. T&E analysis shows that expanding the scope of key legislation would not only curb aviation emissions, but could generate billions for the green transition.
Every year, T&E analyses various datasets to provide a clear snapshot of airline emissions, traffic and market trends across Europe. We also look at whether airlines are paying for the true cost of their pollution under Europe’s carbon markets, the EU and UK Emissions Trading System (ETS). Scroll through the highlights from 2024 below, and download the report for the full results and methodology.
Sources:
T&E modeling based on OAG data and Eurocontrol method; Eurocontrol; European Union Registry Public Website; Swiss Emissions Trading Registry; UK department for Energy Security and Net Zero; ICAP.
European airlines are subject to carbon markets that are riddled with exemptions. Right now, airlines only have to pay for emissions for flights within the EEA, the UK and Switzerland, meaning that long-haul flights – which are the most polluting – are exempt from carbon pricing. Airlines also receive free allowances for their European flights, further reducing the price of CO2.
Extending the scope of Europe’s carbon markets to all departing flights would deliver significant climate benefits and generate revenues. T&E estimates that an extension of the EU and UK ETS could have generated an additional €7.5 billion euros in 2024 if extra-European emissions were priced, which could have supported the development of green technologies like sustainable aviation fuels (SAFs) and electric and hydrogen aircraft.
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