Airline emissions in Europe are almost back to pre-Covid-19 highs, with 8.4 million flights in 2024 producing nearly 188 million tonnes of CO₂. Airlines are supposed to pay under the EU's Emissions Trading System (ETS) because aviation generates carbon dioxide (CO₂) emissions, which, in turn, contribute to climate change.

The ETS is the EU’s key tool for reducing greenhouse gas emissions cost-effectively by putting a price on carbon. However, under current ETS rules, airlines only paid for around 30% of their total emissions, which amounted to approximately €3 billion.

Why? Because the EU's carbon market ignores most long-haul flights, which constitute the biggest offenders, for example, Frankfurt to Shanghai. Airlines only pay for emissions that are made in the European Economic Area. This set-up led to €7.5 billion in lost revenue in 2024.

A review of the ETS is planned for 2026, but it is unclear whether it will actually lead to reform. Even though airline pollution forms a relatively small percentage of global CO₂ emissions, around 2%, reducing them is still necessary if the EU wants to reach its climate goals. That's mainly because aviation is less likely to decarbonise than other sectors, which will raise its total share of emissions.