"IATA" criticizes European proposal to expand emissions trading system

''Al-Eqtisadiah'' from Riyadh

Friday, July 17, 2026 18:05 | 2 minutes read

The International Air Transport Association (IATA) expressed its displeasure with the European Union's proposal to expand the scope of the EU Emissions Trading System (EU ETS) to include flights outside Europe, warning that this approach "lost credibility more than a decade ago."

The association said in a statement issued today, Thursday, that it feels "extreme disappointment" over the proposal, considering that the EU is "repeating a historical mistake that will have grave consequences."

The controversy comes as the European Union considers expanding the scope of the Emissions Trading System to include more international flights, a step Brussels says aims to enhance emission reductions and achieve its climate goals.

In contrast, the global aviation industry supports the CORSIA mechanism, adopted by the International Civil Aviation Organization (ICAO) in 2016, as the first global market-based mechanism to reduce CO2 emissions from international flights.

The mechanism obliges airlines to offset the increase in emissions by purchasing approved carbon credits, aiming to limit the environmental impact of international aviation.

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IATA believes that applying regional systems alongside CORSIA will lead to duplication of regulatory burdens and costs imposed on airlines, as well as create legal disputes over extraterritorial jurisdiction, while the EU asserts that its emissions trading system is a key tool to achieve its carbon neutrality targets.

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The association predicted that expanding the scope of the European system would fuel disputes over extraterritorial jurisdiction, slow down global decarbonization efforts, and weaken the competitiveness of the European aviation sector.

It added that European travelers and companies would be the most affected by this step, calling on the EU to focus on enhancing the CORSIA mechanism as the agreed global framework for reducing aviation emissions, rather than expanding the scope of the European emissions trading system beyond its borders.

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