The European Commission has proposed extending the European Union's carbon market to selected international flights arriving in Europe from destinations within 5,000 kilometers starting in 2029, while the United States said it is "deeply concerned" about the planned expansion of the EU's Emissions Trading System (ETS). (20/07)

A spokesperson for the U.S. Department of Transportation told Reuters that Washington remains "deeply concerned about any expansion of the EU's Emission Trading System."

The spokesperson added, "We are analyzing the European Commission's proposal and will take appropriate steps as needed to protect American consumers and businesses."

The proposal was published by the European Commission on Friday as part of its review of the EU ETS. It would apply carbon costs to international flights arriving in the European Economic Area (EEA) from destinations located within 5,000 kilometers.

Direct flights between Europe and the United States, as well as flights from China, would remain exempt under the proposal. EU officials said the distance threshold excludes U.S. routes.

US Expresses Concern Over EU Carbon Pricing Proposal

The United States previously opposed the EU's attempt to expand its ETS to international aviation in 2012.

Although flights between Europe and the United States are excluded from the latest proposal, U.S. officials said they continue to review the plan.

The Reuters report said some EU officials indicated the distance limit had been designed to avoid increasing tensions with the administration of U.S. President Donald Trump.

Which Flights Will Be Covered Under the Revised ETS

According to the European Commission, routes such as Frankfurt-Dubai and Frankfurt-Istanbul would be included in the revised ETS, while longer routes including Frankfurt-Tokyo would remain outside the system.

Private jets departing from and landing in Europe would also be covered under the proposal.

Climate Commissioner Hopke Woekstra said, "Aviation is the only major sector where emissions are going up rather than down. At the same time, the EU faces a level playing field issue: currently ETS only covers the EEA and quite a few countries, particularly in the Gulf, subsidise their airlines."

He added, "All private jets departing and landing will also be covered. Why should a family flying to Benidorm once a year for their family holiday pay ETS while a private jet user who makes twenty trips a year to luxury locations is not covered."

Exemptions for domestic flights serving the EU's outermost regions, including routes between mainland Spain and the Canary Islands, would remain until the end of 2035.

ETS Reform Tied to Aviation Decarbonization and Investment

The Commission said the proposal is part of the EU's legal obligation to review whether international aviation should face broader carbon pricing if global efforts fail to achieve sufficient emissions reductions by 2032.

An EU official said, "We don't believe we can achieve our decarbonisation goals without ETS," while adding that carbon pricing should work alongside regulation, sustainable aviation fuel (SAF) requirements and investment support.

Existing ETS revenues already support SAF through emissions allowance funding, and officials said that support could be expanded under the revised proposal.

The Commission also proposed keeping free emissions allowances beyond 2030, provided companies invest in decarbonization.

Under the proposal, companies would receive 80% of their free allowances after publishing a board-approved decarbonization investment plan, while the remaining 20% would be released after investments and emissions reductions are completed.

Political Negotiations on ETS Reform Set to Begin

European lawmaker Peter Liese said the ETS is currently "too tight" and argued that additional free allowances are needed, provided they remain linked to decarbonization investments.

"We cannot uphold a situation where, already in 2039, there are no more allowances available. Neither the aviation nor the energy-intensive industry can be without emissions or even climate neutral by that time," Liese said.

Kädi Ristok, Director of Energy and Climate at Transport & Environment (T&E), warned against weakening the ETS.

"Weakening the ETS is a short-term bet that will damage Europe's long-term competitiveness. It also deprives governments of the revenues needed to boost innovative technologies of the future," Ristok said.

The European Parliament and the Council are expected to begin political negotiations on the ETS revision after the summer break.

This article is a summary of two original articles. The full versions can be read at the following links:

https://www.euronews.com/my-europe/2026/07/17/international-flights-set-to-pay-carbon-costs-under-eus-carbon-market-review-from-2029

https://www.reuters.com/business/us-deeply-concerned-after-eu-eyes-carbon-price-international-flights-2026-07-20/

PHOTO: UNSPLASH

This article was created with AI assistance.

We make every effort to ensure the accuracy of our content, some information may be incorrect or outdated. Please let us know of any corrections at [email protected].