The European Commission is proposing to extend the carbon tax applied to aviation to some international flights departing from Europe starting in 2029. However, the proposal does not include a fixed tax on tickets or automatic application to all flights under 5,000 kilometers. The proposed scope is based on a distance calculated from Frankfurt and remains subject to several exemptions.
The legislative proposal was presented on July 17, 2026 as part of the review of the European emissions trading system, known as EU ETS.
At this stage, this extension of the carbon tax has not been adopted. The text still needs to be examined and negotiated by the European Parliament and the Council of the European Union. Its content and timeline may therefore change before it potentially comes into force.
Summary
The carbon tax announced for 2029 remains a proposal
Air transport has been integrated into the European carbon market since 2012. In its current scope, the EU ETS mainly covers flights operated within the European Economic Area, as well as some routes to the United Kingdom and Switzerland.
The companies concerned must surrender allowances corresponding to the CO2 emissions produced by their flights. One allowance represents the right to emit one tonne of CO2 equivalent.
The Commission wishes to extend this mechanism to flights departing from an airport in the European Economic Area to certain destinations located in third countries.
The date of January 1, 2029 is included in the proposal, but it will only become binding if the text completes the European legislative process.
The 5,000 km threshold is calculated from Frankfurt
The most important point concerns how the distance is determined. The 5,000-kilometer threshold does not necessarily correspond to the length of the flight undertaken by the passenger.
The European project uses the distance between the destination airport and Frankfurt airport as the reference point. This common reference should allow for the definition of an identical perimeter for all airlines, regardless of their European departure airport.
A connection departing from Paris, Madrid, Rome or Amsterdam could therefore be included in the scheme if its arrival airport is less than 5,000 kilometers from Frankfurt.
According to the trade press, Travel Weekly specifically mentions Paris-Dubai as one of the routes likely to be covered, while Paris-New York would remain outside this initial expansion. Flights to Istanbul, Cairo, and several Middle Eastern destinations would also fall within the planned geographic scope.
Not all flights within this radius will automatically be affected
Presenting the reform as a carbon tax applied to all international flights of less than 5,000 kilometers would be inaccurate.
The proposal includes several exemptions. Flights to the least developed countries and certain small island developing states would remain exempt, except when their gross domestic product per capita reaches or exceeds the European average.
Airports located within a 5,000 kilometer radius but representing less than 15,000 tonnes of annual emissions for flights from the European Economic Area could also remain outside the scheme.
An exemption is also planned for certain operators whose annual emissions on links between two States remain below 10,000 tonnes.
The actual perimeter will therefore depend on the geographical location of the airport, its traffic level, the country concerned and the volume of emissions of the operator.
The carbon tax will not be added directly to the ticket
The term "carbon tax" is commonly used to refer to the EU ETS, but the system does not operate as a fixed airport tax levied on each passenger.
Companies must measure their emissions, have their data verified, and surrender the corresponding number of allowances. These allowances are purchased on the European carbon market, where the price fluctuates according to supply and demand.
The phase-out of free allowances granted to aviation will end in 2026. Carriers must therefore purchase the allowances needed to cover emissions under the system.
The proposal presented by the Commission does not set any uniform surcharge per ticket. Nor does it provide a precise amount for a journey between two cities.
The potential impact on prices will depend on the future price of carbon credits, aircraft fuel consumption, flight occupancy, fuels used, and each airline's pricing policy. Currently, there is no evidence to suggest that the price increase will be the same for all passengers.
Private jets would be more integrated into the system
The Commission also proposes to extend the coverage of the EU ETS to a larger share of business aviation and private jet flights.
This change does not mean that every private flight will automatically be subject to the carbon tax. The legislation retains exemptions and simplified procedures for certain operators generating low volumes of emissions.
The European impact assessment indicates, however, that a large portion of business aviation currently escapes quota surrender obligations, particularly due to thresholds related to aircraft weight and annual emissions. The revision aims to reduce this exclusion.
The 15 billion euros do not constitute a budget that has already been voted on
The European Commission estimates that around 15 billion euros could be directed towards the aviation sector between 2029 and 2040 to support the use of sustainable aviation fuels and other propulsion technologies.
This amount does not correspond to a definitively adopted budget envelope nor to a direct investment of 15 billion euros in sustainable fuel plants.
The plan includes reserving up to 110 million additional allowances to cover part of the price gap between conventional kerosene and eligible fuels. Support could also extend to electricity, hydrogen, and certain alternative propulsion solutions.
The final value of the mechanism will depend in particular on the price of allowances on the carbon market. The Commission compares this estimate of €15 billion to the current scheme, valued at around €1.5 billion over eight years.
CORSIA remains at the heart of the disagreement with the companies
The European project is taking place in parallel with CORSIA, the global mechanism for offsetting emissions from international aviation established under the auspices of the International Civil Aviation Organization.
The Commission considers that the current level of participation and ambition of CORSIA is insufficient to prevent an expansion of the European carbon market. The proposal nevertheless includes a deduction mechanism designed to limit the risk of double payment when the same emissions are covered by both CORSIA and the EU ETS.
The International Air Transport Association (IATA) contested the proposal as soon as it was published. The organization believes that a regional extension of the European system would weaken the global framework represented by CORSIA.
This stance reflects the sector's opposition, but it is not sufficient on its own to assess the future impact on the competitiveness of airlines or on air traffic. These consequences will depend on the text ultimately adopted and its implementation.
Long-haul flights would remain exempt until the end of 2032
The proposal includes a temporary exemption for flights to airports located more than 5,000 kilometers from Frankfurt. This exemption would apply from January 1, 2029, to December 31, 2032.
The main links to North America, South America and East Asia would therefore remain outside the extension during this period.
The Commission will have to review CORSIA and the international coverage of the carbon market before July 2032. As the proposal stands, the exemption granted to destinations located beyond 5,000 kilometers would end on December 31, 2032.
A broader extension could therefore take place from 1 January 2033, unless changes are decided following the European assessment or negotiations with the Parliament and Member States. It is too early to present this development as definitively settled.
What tourism professionals can say today
The European Commission is indeed proposing to extend the EU ETS to a portion of international flights departing from the European Economic Area from 2029.
The announced threshold is based on a 5,000-kilometer radius around Frankfurt, not on the exact distance of each route. Several categories of countries, airports, and operators may remain exempt.
No specific increase in ticket prices is included in the proposal. Travel agencies, tour operators, and companies therefore do not yet have a basis for calculating a surcharge per passenger or per destination.
The first timeline to watch is now that of the discussions between the European Parliament and the Council. The rules applicable in 2029 will depend on the text adopted at the end of these negotiations.
Article published on July 21, 2026, based on the legislative proposal presented by the European Commission on July 17, 2026. The scope and timetable of the reform may change during the legislative process.
Sources
- https://climate.ec.europa.eu/document/download/c0b4ca8e-0e12-4b4e-9976-98c0b4224410_en
- https://climate.ec.europa.eu/document/download/63c0103a-6b5f-4151-b117-b3c4b35b5d0e_en
- https://climate.ec.europa.eu/eu-action/transport-decarbonisation/reducing-emissions-aviation_en
- https://ec.europa.eu/commission/presscorner/detail/en/speech_26_1643
- https://travelweekly.co.uk/news/iata-frustrated-as-ec-extends-emissions-trading-to-flights-beyond-europe
- https://www.deplacementspros.com/transport/aerien/lue-etendra-la-taxe-carbone-aux-vols-internationaux-de-moins-de-5-000-km-des-2029
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