European carbon trading catching less than quarter of airline emissions, data finds

Less than a quarter of airline emissions were caught by Europe’s carbon trading schemes last year, according to new data that illustrates the limitations of one of the key tools to fight pollution from aviation. Airlines and other carbon-intensive industries are charged under emissions trading systems in the EU, UK and Switzerland, which require companies to buy allowances to cover the carbon dioxide they give off. But the schemes only apply to flights within the region and do not capture emissions from long-haul flights, which burn the most fuel. Airlines are also handed annual free allowances under the system. In all, only 22% of emissions from flights departing from Europe were caught by the regional carbon trading schemes in 2023, according to a report by Transport & Environment, an environmental campaign group. “A big share of European aviation emissions are not charged for,” said Jo Dardenne, aviation director at T&E. “In a time of climate crisis, how can we allow airlines gobbling up fossil fuels to not pay for a fair share of their emissions?” Flights departing from Europe emitted a total 164.5 megatonnes of CO₂ in 2023, T&E said, up 11% on the previous year but still 12% below 2019’s peak. European airlines have made a commitment to reach net zero by 2050 and face some of the most stringent environmental rules in the world, which also include a mandate to blend jet fuel with cleaner but more expensive alternatives from next year. Even under the current ETS systems, airlines flying in Europe paid E3b in ETS allowances in 2023, T&E calculated. This meant the price of polluting had developed into the third biggest cost for major European airlines, behind fuel and labour, one industry executive said. The region’s airline bosses have warned that their companies are at a disadvantage because of the EU’s tough climate rules, and called for global standards that would capture all flights and not just those taking off from Europe.<br/>
Financial Times
https://www.ft.com/content/9da780a6-0f93-4d25-a956-22d48dafcfb0
4/19/24