EU trilogue results for the aviation sector – key issues and expected impacts

Abstract

In July 2021, the European Commission had proposed additional and tightening measures to reduce the climate impact of the air transport sector as part of its ‘Fit for 55 package’. In December 2022, so-called trilogue negotiations of the European Commission, the European Parliament and the Council of the European Union came to new rules for the EU emissions trading scheme (EU ETS) for aviation. In April 2023, further trilogue agreements on mandatory blending quotas for sustainable aviation fuels (SAF) were reached. This paper aims at identifying and illustrating the agreed new rules and regulations for the aviation sector in comparison with the previous regime. In addition, key impacts on stakeholders and the environment will be discussed. So far, the trilogue parties have reached an agreement on a strengthened EU ETS for aviation, which integrates the global offsetting scheme CORSIA and creates incentives for the increasing use of SAF. Also, a monitoring, reporting and verification scheme for aviation's climate relevant so-called non-CO2 emissions will be introduced as a basis for a later integration of these emissions into the EU ETS. Aviation's non-CO2 emissions include H2O, aerosols, NOx, contrails and cirrus clouds. Moreover, a mandatory sustainable aviation fuels (SAF) blending quota, which rises gradually up to 70 per cent in the year 2050, has been agreed. However, further policy measures originally proposed within the ‘Fit for 55 package’, such as a European kerosene tax, are still subject to final negotiations. As our analysis indicates, several and diverse economic and environmental effects arising from these climate protection policies for European aviation can be expected.