Scope extension, revenue generation and the use of SAF and contrail allowances under the EU ETS
The revision of the EU Emissions Trading System (ETS) in July 2026 represents a unique opportunity for European aviation. In order to meet the temperature targets set out in the Paris Agreement and ensure that the 'polluter pays' principle is applied fairly, the EU must expand the scope of the current EU ETS, which currently covers flights within Europe, and reinvest the generated revenues in the decarbonisation and the green transition for European aviation.
Why is extending the ETS scope to all departing flights a smart industrial policy?
Currently, the EU ETS only covers flights within Europe, accounting for only a fraction of European aviation emissions. Extending the scope to include all flights departing from the EU would incorporate an additional 80 Mt of CO₂ emissions into the scheme, compared to the current 64 Mt.
Furthermore, the current scope does not take into account all flights by private jets, leaving 67% of private jet emissions uncovered.
An extension of the scope would not only cover a greater amount of emissions, but it would also increase revenues from €3 billion in 2024 to an additional €7 billion. This increase in revenue would help to accelerate the decarbonisation of the aviation sector. The biggest beneficiaries of a scope extension would be Germany, Poland and Italy. (....)