As the daily notes, this decision could dramatically increase ticket prices on long-haul routes and trigger a massive trade conflict with the US and other key partners.
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Currently, the EU Emissions Trading Scheme (ETS) only covers intra-EU flights. This means that a passenger flying from Dublin to Paris indirectly pays for carbon dioxide emissions, but a flight from Paris to New York is exempt from this fee.
European Commission officials in an interview with the Financial Times argue that it's time to change this, as previous international attempts to reduce aviation emissions have not yielded results.
Ticket prices may increase by this much
According to estimates by the Transport & Environment (T&E) think tank, quoted by the British daily, the ETS system currently adds approximately EUR 7 to the price of a ticket within the EU. Extending the rules to all flights leaving the bloc could increase the cost of an average ticket by an average of €45.
This would mean huge revenues for the EU budget and member states – up to EUR 17 billion by 2030
“We will try to present arguments for our plans and listen to how the industry sees it,” said one EU official before Tuesday's meeting with representatives of the industry and non-governmental organizations.
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Aviation giants oppose change
As described by the Financial Times, the proposal arouses great resistance from airlines, which are already struggling with record high aviation fuel prices, which have doubled since the beginning of the conflicts in the Middle East. Long-haul carriers such as Air France and British Airways are concerned about their profitability, as global routes generate the lion's share of their profits.
In turn, low-cost airlines such as Ryanair and easyJet have long criticized the current system, pointing to unfair competition. They argue that strict carbon regulations make holidays in Turkey much cheaper than in Greece, forcing consumers to choose resorts outside Europe.
A geopolitical clash on the horizon
Brussels is aware that the proposal is a “political grenade”. Previous attempts to include non-EU flights in the ETS over a decade ago were suspended under strong pressure from the United States, China and India.
— We are simply doing what the EU has the right to do, but we are fully aware of the geopolitical conditions. We don't expect it to be easy – admits an anonymous representative of the Commission in an interview with the newspaper.
