ALTA Statement on the European Commission’s Proposal to Extend the EU ETS to International Aviation

The European Commission has already eliminated free emission allowances for airlines. Since 2026, they must pay for 100% of their emissions on flights within Europe. The proposal now seeks to go further: the European Commission is looking to apply carbon costs to international flights departing from Europe and landing at destinations up to 5,000 km away. If approved, this measure would take effect starting in 2029.

In response to this proposal, ALTA joins the position already expressed by the International Civil Aviation Organization (ICAO), the International Air Transport Association (IATA), Airlines for America (A4A), Airlines for Europe (A4E), and the Arab Air Carriers Organization (AACO), and emphasizes the following points, which must be carefully reviewed as they would affect the international industry, including the region:

• Extraterritoriality: The measure would apply over the airspace of third-party sovereign states, outside European jurisdiction.

• Overlap with CORSIA: CORSIA is the only global framework agreed upon by States within ICAO to reduce international aviation emissions. The EU ETS is a regional scheme that would be added on top of the same flight.

• Duplication of efforts: Airlines would have to monitor, report, and verify the same emissions under two different schemes, resulting in higher costs in terms of time, operational capacity, and energy, without reducing a single additional ton of CO2.

• Risk of setting a precedent: If this scheme moves forward, other jurisdictions could replicate it, multiplying regulatory fragmentation worldwide.

• Use of resources: There is no guarantee that the funds collected would be reinvested in aviation decarbonization.

• Impact on regional connectivity: Most direct routes from Latin America and the Caribbean to Europe would be exempt due to distance, but connections via European hubs would be taxed, reducing the competitiveness of airlines in the region.

“For ALTA, the direction is clear. We are committed to global emissions reduction targets and to the path toward net zero, but by strengthening the framework that already exists, not duplicating it. With the same determination, we are committed to protecting the connectivity and sustainability of an industry that needs to be profitable in order to continue being a driver of economic development and a source of well-being for people across Latin America and the Caribbean. Both are equally important goals: the challenge is not to choose between them, but to find the balance.” said Peter Cerdá, CEO of ALTA.