ALTA issues warning EU ETS expansion

ALTA has criticised the European Commission’s proposal to extend the EU Emissions Trading System (EU ETS) to certain international flights from 2029, arguing that it would create additional regulatory burdens and affect airlines beyond Europe. The association warns the proposal would overlap with ICAO’s global CORSIA framework, forcing airlines to comply with two emissions reporting systems, increasing costs and setting a precedent for fragmented regional regulation. ALTA says it supports aviation decarbonisation and net-zero goals but believes this should be achieved through the existing global framework. It also warns the proposal could reduce the competitiveness of Latin American and Caribbean airlines using European hub airports. The Latin American and Caribbean Air Transport Association (ALTA), the voice of an industry that is an engine of economic and social development for Latin America and the Caribbean, has spoken out on the European Commission’s proposal to extend the emissions trading system (EU ETS) to international aviation. The European Commission has already eliminated free emission allowances for airlines. From 2026, they must pay 100% of their emissions on flights within Europe. Now the proposal seeks to go further: The European Commission seeks to apply carbon costs to international flights departing from Central Europe and landing at destinations located at a maximum distance of 5,000 km. This measure, if approved, would come into force from 2029. Faced with this proposal, ALTA joins the position already expressed by the International Civil Aviation Organization (ICAO), the International Air Transport Association (IATA), Airlines for America (A4A), Airlines for Europe (A4E) and the Arab Air Carriers Organization (AACO) and emphasizes the following points, which should be carefully reviewed as they would affect the international industry, including the region: Extraterritoriality: The measure would apply to the airspace of sovereign third states, outside European jurisdiction. Overlap with CORSIA: CORSIA is the only global framework agreed by States at ICAO to reduce emissions from international aviation. The EU ETS is a regional scheme that would be added on the same flight. Duplication of efforts: Airlines would have to monitor, report and verify the same emissions under two different schemes, which represents higher costs in time, operational capacity and energy, without reducing an additional ton of CO2 . Risk of precedent: If this scheme advances, other jurisdictions could replicate it, multiplying regulatory fragmentation worldwide. Use of resources: There is no guarantee that the proceeds will be reinvested in the decarbonization of aviation. Impact on regional connectivity: Most direct routes from Latin America and the Caribbean to Europe would be exempt due to distance, but connections via European hubs would be taxed, reducing the competitiveness of airlines in the region. “For ALTA, the course is clear. We are committed to global emissions reduction targets and the path to net zero, but strengthening the framework that already exists, not doubling down on it. With the same determination, we are committed to protecting the connectivity and sustainability of an industry that needs to be profitable to continue being an engine of economic development and a generator of well-being for Latin Americans and Caribbeans. They are two equally important objectives: the challenge is not to choose between them, but to find the balance,” said Peter Cerdá, CEO of ALTA.