Industry Insights

A4A Statement on the European Commission’s Proposal to Expand the EU Emissions Trading System (ETS)

July 20, 2026

The U.S. aviation industry has a strong track record on environmental performance and remains committed to continued action in line with the sector’s ambitious aspiration to achieve net zero emissions by 2050. From 1978 to 2024, U.S. airlines improved fuel efficiency by nearly 150%, cumulatively saving over 6 billion metric tons of carbon dioxide, equivalent to taking more than 31 million cars off the road each year. These developments were made possible through investing billions of dollars in fuel-saving aircraft and engines, developing innovative technologies, using sustainable aviation fuels (SAF), and deploying cutting-edge route-optimization software. We are committed to building on this record with continued technological innovation, fleet renewal, increased investment in SAF, infrastructure and air traffic modernization.

Despite the progress in the United States and globally on aviation emissions, including collaboration at the International Civil Aviation Organization, the European Commission has put forward a unilateral proposal to tax emissions from international aviation outside of the European region. We do not support an extraterritorial and fragmented approach to international emissions. This proposal does make improvements in the use of revenues from EU ETS, but extending the scope to international flights outside of the European region violates international agreements and reopens a contentious chapter in international aviation on environment matters.

We are hopeful that upcoming negotiations on this proposal among the European Parliament, Council and Commission will yield a more appropriate result that supports a consensus-based global approach to addressing international aviation emissions.