EU ETS Expansion to 5,000km Extra-EAA Flights Begins 2029

The European Commission formally proposed 17 July 2026 to extend the EU Emissions Trading System to cover departing flights from the European Economic Area landing within a 5,000 km radius, effective 2029. This marks the first application of EU ETS carbon pricing to departing international flights, targeting routes like Frankfurt–Dubai and Frankfurt–Istanbul while exempting long-haul sectors to the US, China, and India. All private jet operations are explicitly included for the first time, creating immediate cost structure impacts for business aviation operators lacking Sustainable Aviation Fuel allowances. The proposal retains free allowances beyond 2030 conditional on decarbonization plan delivery and mandates a 2032 review to assess CORSIA sufficiency before potentially expanding coverage to all departing international flights.