Ecobiz.asia – The International Air Transport Association (IATA) has warned that proposed changes to the European Union’s Emissions Trading System (EU ETS) could undermine the global Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), as the global aviation carbon scheme marks 10 years since its adoption.
Adopted by the International Civil Aviation Organization (ICAO) Assembly in 2016, CORSIA established the first global market-based measure for an industrial sector. IATA said the scheme’s 10th anniversary provides an opportunity to reinforce its role as the global framework for addressing international aviation emissions.
The warning comes as the EU reviews its aviation ETS, including proposals to extend the system to destinations within 5,000 kilometers of the EU, using Frankfurt as the geographic center, and establish a mechanism for comparable carbon-pricing systems with third countries.
“The EU ETS review should reinforce CORSIA as the global framework for international aviation, not encourage overlapping regional or bilateral systems,” said Thomas Reynaert, IATA’s Senior Vice President External Affairs in a statement on Tuesday (Oct. 6, 2026).
Reynaert said Europe could deliver greater climate benefits while supporting its competitiveness by directing aviation revenues toward sustainable aviation fuels (SAF), infrastructure and emerging technologies rather than imposing additional carbon costs.
IATA said the absence of an impact assessment for the proposed expansion makes it difficult to assess potential effects on third countries, international connectivity, competitiveness and the functioning of CORSIA.
The association estimates that the proposed expansion could increase EU ETS compliance costs by 40% to about €280 billion over 2027–2040.
IATA is calling on the EU to ensure the full and unified implementation of CORSIA for international aviation without extending the EU ETS extraterritorially.
It also wants the EU to remove the proposed “EU ETS as a Service” mechanism, which IATA says could encourage parallel regional or bilateral carbon-pricing systems alongside CORSIA.
SAF Support
IATA is also calling for stronger EU support for sustainable aviation fuel production, including greater support through the SAF allowances mechanism from the outset rather than only from 2029.
The association also wants the EU to remove geographic production restrictions and other conditions that it says could limit support for sustainability-compliant SAF pathways.
In addition, IATA is calling for aviation-generated EU ETS revenues to be ring-fenced for SAF production, infrastructure and emerging aviation technologies.
IATA said its revised analysis and recommendations have been submitted to European policymakers as part of the ongoing legislative process. ***
