Expert Call: Risk of the expansion of EU ETS to all departing flights

Research evidence excerpt

Expert Call: Risk of the expansion of EU ETS to all departing flights

Deutsche Bank

Research

Emerging Europe Industry Date

Europe 26 June 2026

Expert Call

Transport Market Update

Airlines

Risk of the expansion of EU ETS to all

departing flights

Jaime Rowbotham

Who? Research Analyst

We will host a call with Jan Ahrens, Managing Director and co-founder of Transition +44-20-754-72690

Metrics, a company providing institutional-grade carbon market intelligence,

Michael Linenberg

enabling investors to quantify compliance carbon exposure with precision. Jan is Research Analyst

a carbon trader turned analyst with 20 years of experience in compliance carbon +1-212-250-9254

markets across the EU, US and Asia.

Harishankar Ramamoorthy

Research Analyst

Why? +44-20-754-12940

The EU’s emissions trading system (ETS) currently only applies to intra-European

Gopal Krishan

flights. An international scheme to offset carbon emissions from flights – the

Research Associate

Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) – was

intended to take care of long-haul but has lacked the formal backing of countries

that are some of the biggest emitters, including the US, India and China, and is

based on voluntary participation by governments. Under an EU directive the EC has

to publish a report to assess CORSIA’s effectiveness by 1 July 2026. Given the high

likelihood it will be deemed insufficient, the EC will then consider ‘the application

of the EU ETS to departing flights… to aerodromes located outside the EEA from

January 2027’.

What?

Extending the ETS was last considered in 2012 and faced fierce opposition from the

US & China. While such opposition would be likely once again, perhaps limiting the