IATA: Europe’s proposed extension of EU ETS beyond its borders is a ‘historic error’

The International Air Transport Association said July 17 that it is deeply frustrated at the proposed extension of the European Emissions Trading System beyond Europe’s borders—an approach that was discredited over a decade ago.

“The EU is repeating a historic error,” said Willie Walsh, IATA’s director general.

“The consequences will be harmful—sowing acrimony over extraterritoriality, slowing global decarbonization and sapping European competitiveness—with European travelers and businesses paying the price,” he added.

Instead of expanding the EU ETS beyond Europe’s borders, the EU should focus on making the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation—the agreed global mechanism—even more successful, IATA stated.

“Increasing SAF allowances and enabling a book-and-claim system for SAF could be promising steps, but the details are critical to success,” Walsh said.

“We will engage with European policy makers towards a more effective approach with no extraterritoriality, full support for CORSIA and effective SAF incentives,” he said.