EU Proposes Carbon Pricing on Neighboring Hub Airports and Private Jets

The European Commission announced on Friday that commercial flights connecting Europe with the Middle East and North Africa, as well as all departing and arriving business jets, will be subject to the EU's carbon price under the Emissions Trading System (ETS). Instead of extending the ETS to all long-haul flights—which caused a diplomatic dispute with the US and China in 2012—Brussels proposed including only flights departing from Europe and landing within a 5,000-kilometer radius of Frankfurt airport. This means major hubs like Istanbul and Dubai are affected, while routes to American and Chinese airports, and all incoming flights, are exempt. The move aims to level the playing field between European airlines and their direct competitors outside the EU. The Commission also extended a 'stop-the-clock' measure by six years, giving the UN's CORSIA scheme more time to prove its effectiveness. Private jets, previously largely exempt, will now be fully covered. Climate Commissioner Hoekstra criticized the exemption of private jets, calling for fairness. Airlines for Europe criticized the proposal as a regional solution to a global problem.